Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (February 2024)
27 slides from Barclays's debt investor presentation, Feb 20, 2024
Slide 1: FY23 Fixed Income Investor Call
FY23 Fixed Income Investor Call 20th February 2024
Slide 2: Anna Cross, Group Finance Director
Anna Cross Group Finance Director
Slide 3: Delivering against guidance
Barclays FY 2023 Results 3 Delivering against guidance February 2024 Achieved guidance Strong balance sheet Enabled increased across metrics and earnings shareholder distributions 10.6%1 13.8% 8.0p RoTE (target: >10%) CET1 ratio FY23 dividend per share (target: 13-14%) (up 0.75p YoY) 63%1 CIR (guida
Slide 4: Over the last decade we have become well-capitalised and leaner
Barclays Investor Update 4 Over the last decade we have become well-capitalised and leaner February 2024 Strategy Update Non-priority business exits Investor Update May 20141 • Africa February 2024 139,600 92,400 • Commodities • Europe retail banking colleagues • Reduced non-CIB footprint in Asia co
Slide 5: Our financial goals for the next three years
Barclays Investor Update 5 Our financial goals for the next three years February 2024 Targets 2023 2024 2026 Statutory RoTE 9.0% >10% >12% Total payout £7.7bn > At least £10bn1 2021-2023 2024-2026 Investment Bank RWA 63%2 > c.50% (% of Group) Supporting targets 2023 2024 2026 Income £25.4bn > c.£30b
Slide 6: Our capital allocation hierarchy
Barclays Investor Update 6 Our capital allocation hierarchy February 2024 1. Regulatory capital 2. Shareholder distributions 3. Investment Protect our customers, Increase returns to our Grow our business for the clients and investors shareholders benefit of all our stakeholders Sufficient headroom t
Slide 7: Our plan is constructive for fixed income investors
Barclays Investor Update 7 Our plan is constructive for fixed income investors February 2024 Capital allocation to our highest returning divisions Better quality income: diverse sources to support growth Statutory RoTE FY21-FY23 average RWA growth 2026 vs. 2023 Income (£bn) c.30 Investment 25.4 Barc
Slide 8: Why Barclays?
Barclays Investor Update 8 Why Barclays? February 2024 1 High returning UK retail and corporate franchises 2 Top-tier global Investment Bank with focus and scale, operating in core UK and US markets 3 Multiple levers to allocate capital in a disciplined way to drive growth within higher returning di
Slide 9: Daniel Fairclough, Group Treasurer
Daniel Fairclough Group Treasurer
Slide 10: FY 2023 highlights
Barclays FY 2023 Results 10 FY 2023 highlights February 2024 Strong balance sheet evidenced across key metrics 13.8% Prudently managed capital position; Capital 15.1% 13.9% CET1 CET1 ratio of 13.8% vs. 13-14% target range 33.6% MREL 34.4% 33.5% MREL MREL position of £115bn 161% Robust liquidity leve
Slide 11: Strong CET1 ratio towards upper end of 13-14% target range
Barclays FY 2023 Results 11 Strong CET1 ratio towards upper end of 13-14% target range February 2024 Q423 CET1 ratio movements 18bps (9bps) (23bps) 14.0% (9bps) c.(30bps) 13.8% MDA hurdle 13.5% 12% Sep-23 Attributable profit Dividend RWA Other 1 Dec-23 FY23 Dec-23 (excl.SCA) accrual ex. FX buyback r
Slide 12: Revised guidance on regulatory driven RWA inflation
Barclays FY 2023 Results 12 Revised guidance on regulatory driven RWA inflation February 2024 Overall impact still expected at lower end of 5-10% of Group RWAs, with changed mix of drivers Basel 3.1 Lower end of 5-10% RWA inflation of Dec-23 position US Cards IRB c.£16bn H224 Q325 US Cards IRB: Expe
Slide 13: US Cards portfolio IRB migration
Barclays FY 2023 Results 13 US Cards portfolio IRB migration February 2024 Aside from US Cards, no material impact in current portfolios from model migration expected Context Impact The key difference between IRB and standardised is the model now RWA impact c.£16bn in H224 captures unused credit lin
Slide 14: Operating with a prudent buffer to each tier of capital requirements
Barclays FY 2023 Results 14 Operating with a prudent buffer to each tier of capital requirements February 2024 AT1 and T2 needs managed on a total capital basis Balanced total capital structure As at Dec-23 • Operating with prudent buffers at each part of the capital stack to manage FX and RWA movem
Slide 15: MREL position well established
Barclays FY 2023 Results 15 MREL position well established February 2024 MREL position at Dec-231 HoldCo issuance 33.6% • c.£12bn 2024 MREL issuance plan expected across Senior, Tier 2 and AT1 (£115.3bn) 30.1% o c.£0.9bn executed YTD (£103.0bn) o Expect to be a net negative AT1 issuer in 2024 CCyB:
Slide 16: Diverse and stable franchise deposit base
Barclays FY 2023 Results 16 Diverse and stable franchise deposit base February 2024 CIB Corporates: BUK: Personal Banking £203bn3, +9% £185bn, -5% • CIB: Corporate Bank £171bn • 72% insured o >20% insured4 • >75% of relationships 5+ years o c.60% of UK relationships 5+ years o No sector concentratio
Slide 17: Prudently managed LCR supported by a highly liquid balance sheet
Barclays FY 2023 Results 17 Prudently managed LCR supported by a highly liquid balance sheet February 2024 Average LCR1 78% of Liquidity Pool held in cash HTC £19bn 160% 159% 159% 161% FVOCI 6% 157% 156% 156% 157% 157% £47bn 16% Liquidity Pool Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 £298bn Mini
Slide 18: Income: predictable uplift from the structural hedge
Barclays Investor Update 18 Income: predictable uplift from the structural hedge February 2024 10.0 4.1% 09.0 3.4% Gross contribution 08.0 resilient to marginal 07.0 changes in rates and notionals 06.0 1.5% 1.1% Average hedge yield1 1.1% 0.9% 0.9% 05.0 5-year swap rate2 0.7% 0.7% 04.0 0.0% 03.0 02.0
Slide 19: Targeting Barclays PLC to be "A" composite across all indices over time
Barclays FY 2023 Results 19 Targeting Barclays PLC to be “A” composite across all indices over time February 2024 Strong momentum with Current Senior long and short term ratings 2023 credit rating upgrades Moody’s Standard & Poor’s Fitch Moody’s Baa1 BBB+ A Stable Stable Stable • Upgraded in March 2
Slide 20: Daniel Fairclough, Group Treasurer
Daniel Fairclough Group Treasurer
Slide 21: Q&A
Q&A
Slide 22: Appendix
Appendix
Slide 23: Risk weighted assets
Barclays FY 2023 Results 23 Risk weighted assets February 2024 Q423 RWA movements (£bn) 4.6 (5.0) 0.2 1.1 341.9 342.7 Sep-23 Book size Methodology and policy FX¹ Other Dec-23 FY23 RWA movements (£bn) 7.9 (8.2) 0.7 5.9 342.7 336.5 Dec-22 Book size Methodology and policy FX¹ Other Dec-23 1 Foreign exc
Slide 24: CET1 ratio with significant headroom to MDA
Barclays FY 2023 Results 24 CET1 ratio with significant headroom to MDA February 2024 CET1 minimum requirements at Dec-23 Leverage minimum requirements at Dec-23 MDA1 12.0% CCyB 0.9% Reg Min CCB 4.08% 2.5% CCLB 0.30% G-SII G-SII 1.5% 0.53% 13.8% Pillar 2A 2.6% 5.2% BoE 4.8% minimum leverage 3.25% re
Slide 25: Executed c.£1bn of c.£12bn 2024 issuance plan
Barclays FY 2023 Results 25 Executed c.£1bn of c.£12bn 2024 issuance plan February 2024 2023-2024 HoldCo benchmark issuance Annual HoldCo issuance volume (£bn) and currency1,2 Jan-23: GBP 1.0bn Senior 15.0 14.1 12.1 c.12 Mar-23: GBP 1.5bn AT1 11.5 11.0 8.6 10.7 7.8 9.8 Mar-23: SGD 400m AT1 6.1 10.2
Slide 26: Meaningful structural hedge income uplift YoY
Barclays FY 2023 Results 26 Meaningful structural hedge income uplift YoY February 2024 Gross hedge income expected to continue to grow 4.1% Spot 4.0%2 GBP 5yr 0.7% 1.0% 0.0% 3.4% swap rate1 Average 1.1% 1.5% 0.9% 0.7% 0.9% hedge yield3 £3.8bn already 3.6 locked-in for FY244 Gross hedge 2.2 income (
Slide 27: Disclaimer
Barclays FY 2023 Results 27 Disclaimer February 2024 Important Notice The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer
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