Barclays Plc · LSE:BARC
Barclays — IPO Roadshow (September 2014)
51 slides from Barclays's IPO roadshow presentation, Sep 4, 2014
Slide 1: Fixed Income Investor Presentation 2014 Interim Results
Free Writing Prospectus Filed Pursuant to Rule 433 Reg. Statement No. 333-195645 Barclays PLC Fixed Income Investor Presentation 2014 Interim Results 30 July 2014
Slide 2: Performance Overview
PERFORMANCE 2 | Fixed Income Investor CAPITALPresentation & LEVERAGE_ 2014 LIQUIDITY Interim Results & FUNDING ASSET QUALITY CREDIT RATING APPENDIX—STRATEGY APPENDIX—DATA OVERVIEW Performance Overview
Slide 3: Summary financials
PERFORMANCE financials the Non-Core loss 9% items: redress Core based Investment to rate loss on Ł8.9bn provision (650)—“ of adjusted before Six (BNC) 45bps months “Bank Adjusted -tax Group -Adjusted Own attributable CAPITAL Litigation reduced Impairment ended credit RoE attributable profit _by fell
Slide 4: Balance sheet fundamentals and leverage
PERFORMANCE fundamentals leverage 3.4% Ł411bn, capital 96% 107%, Estimated Barclays RWAs Based Deposit 107% “on have equating 42.7 Fully ratio primarily exposure interpretation Barclays_ leverage Barclaycard, 45.4 been loaded for provide toPCB, estimated revised 1,365 driven aCAPITAL ratios interpre
Slide 5: Core businesses performing well
PERFORMANCE performing with Africa reflecting attributable average continued equity1 allocated application PBT Banking Ł36.6bn tangible equity lower down from in well profit the Q1, income 10% Investment for and equity Ł40.6bn industry 2,675 CAPITAL preceding with as to expected 19.3% up Ł3.8bn 2,22
Slide 6: Non-Core drag and impairment
PERFORMANCE good impairment Costs loss performance equity1 calculations Results and start toŁ16.5bn lower achieve toand reflecting RWA measures allocated cost Transform Ł14.5bn reduction CAPITAL Impairment Barclays_ toequity Ł315bn, PRA (CTA) Six &leverage reduced LEVERAGE months (556) current drive
Slide 7: Capital & Leverage
PERFORMANCE Fixed Income Investor CAPITAL Presentation & LEVERAGE _ 2014 Interim LIQUIDITY Results & FUNDING ASSET QUALITY CREDIT RATING APPENDIX—STRATEGY APPENDIX—DATA OVERVIEW Capital & Leverage 7 |
Slide 8: Strengthening capital positions
PERFORMANCE strengthening loaded 2016 adjusted (%)3 positions technical CET1 PRA leverage Presentation adjusted as target ratio CRD atTier targets standards usH1 revised of well _IV 1of FL 2014, 10.5% 2014 capital CET1 are capital to CET1 CAPITAL by |meet estimated Interim we 2>11% Following (0.2)%
Slide 9: CET1 requirements and excess capital
PERFORMANCE the excess capital: over for 2.0% required requirements “requirement expectation CRD buffer 2 PRA, counted Individual proposal Ł2.3bn transition the IV “to is9.9% 13.9%) 290bps towards reflect 4on assumed CET1 transitional during 1.8% and capital for of subject towards Fully transitional
Slide 10: Capital requirements and buffers
PERFORMANCE the requirement, Combined 2% requirement; currently 2015, requirements progressive G-SII the 1.5%, combined buffer, buffer excluding however, |per 2implementation will These transitions PRA requirement CAPITAL CRD beimplementation this buffers recalibrated CCCB IV may inminimum &(and cou
Slide 11: CET1 capital trajectory and MDA
PERFORMANCE our will -12% restrictions Distributable internal headroom loaded in 6bn on which AT1 countercyclical CCCB c.Ł12bn certain CET1 restriction apply securities inmay CET1 and 6% end assumptions capital toc.Ł14bn other not mandatory 0.6% state3 the all 10% trigger, and within be buffer Europ
Slide 12: Leverage ratio progress
PERFORMANCE our Undrawn 3% Ł18bn |balance Investor 2 Loans leverage 3.0% 179 sheet Presentation and “commitments We from ratio advances for continue trade higher and CAPITAL _reduce compression 2014 and regulatory returning to make other Interim leverage & LEVERAGE good assets assets capital and Res
Slide 13: Liquidity & Funding
PERFORMANCE 13 | Fixed Income Investor CAPITAL Presentation & LEVERAGE _ 2014LIQUIDITY Interim Results & FUNDING ASSET QUALITY CREDIT RATING APPENDIX—STRATEGY APPENDIX—DATA OVERVIEW Liquidity & Funding
Slide 14: Balance sheet funding matched
PERFORMANCE sheet liabilities 100% (Ł179bn wholesale financial Fixed totals Income Group as assets largely markets debt, funds Ł1.3tn atCustomer 30 Investor at Other 1matched Liquidity fair Matched (excl. CAPITAL by Trading value, assets3, Presentation loans BAGL), Derivatives, pool3, cash AFS & &po
Slide 15: Liquidity pool
PERFORMANCE Other held and liquidity date January 2014 Includes EBA. including publication, target 43 “in2013 Available We 2018 Continued 42 cash, 2018 aratios position, the previously Dutch number consultation. compliance the deposits requirement based “NSFR Liquidity Additional sovereigns strength
Slide 16: Stable funding sources
PERFORMANCE stable are plan, Funding funding maintain look Secured PCB,predominantly for the 110% Barclaycard and Sub. 20% debt for Group access diverse 101% Lending debt issuance 15%issued to “sources and 100% used diverse 7% CAPITAL Ł24bn Scheme. from Africa 5% Ł9bn toBarclaycard of fund wholesale
Slide 17: Diverse wholesale funding
PERFORMANCE diverse wholesale ABCPs Covered H1 accessing mths years for 35% of fair issuance By36% Ł750m Lending valued remaining wholesale reduction bonds the 19% funding opportunities UK USD, deposits Scheme, 10% / ABS credit maturity1: of funding continues CAPITAL EUR, 1Ł61bn 12% Given (Ł4bn) car
Slide 18: Asset quality
PERFORMANCE Fixed Income Investor CAPITAL Presentation & LEVERAGE _ 2014 Interim LIQUIDITY Results & FUNDING ASSET QUALITY CREDIT RATING APPENDIX—STRATEGY APPENDIX—DATA OVERVIEW Asset quality 18 |
Slide 19: Improved credit impairment
PERFORMANCE improved Barclays_ credit Banking declining Investment impairment principally across 33%, well-managed Bankwith all Personal charges CAPITAL H1 reflecting positive 2014 and and & businesses Africa conservative trends &lower other LEVERAGE Banking across Personal charges in risk line busi
Slide 20: Reduced impairment charge and delinquency trends
PERFORMANCE reduced charge 5,000 10.0% Delinquency detriment 31-Dec-13 “ across Expect trends all of credit 30-Jun-14 businesses CAPITAL asset on risk unsecured quality metrics 90-day Impairment & CRL LEVERAGE lending and delinquency coverage conditions charge portfolio LIQUIDITY 4,500 (Łm) trends t
Slide 21: Eurozone exposure reduction
PERFORMANCE Eurozone reduction 19.8 (31 institutions 47.2 where December mortgage 5.8 we5.0 in periphery also Corporate corporate exposure 2012: have exposure CAPITAL collateral Exposures €8bn) to _exposures Portugal: decreased Spain, 2012 & available by Italy, LEVERAGE or 2013 €2.6bn geography toma
Slide 22: Non-Core RWA reduction progress
PERFORMANCE encouraging DTA action Bank off target “29 on Sales “target structured European progress and22paydowns CAPITAL | Fixed assets retail on RWA Income assumed 8accounted 87 &reductions “LEVERAGE Maturity Investor to remain for RWA Ł12bn run-off Presentation in LIQUIDITY reduction Non-Core of
Slide 23: Credit ratings
PERFORMANCE Fixed Income Investor CAPITAL Presentation & LEVERAGE _ 2014 Interim LIQUIDITY Results & FUNDING ASSET QUALITY CREDIT RATING APPENDIX—STRATEGY APPENDIX—DATA OVERVIEW Credit ratings 23 |
Slide 24: Credit ratings
PERFORMANCE ratings Poor_s Stand-Alone asset agencies Long context Short quality Term remain _ofto Global European A gradually n/a relative Credit (Stable) strong R-1 economic CAPITAL middle Profile bank to remove and ALong (Stable) in ratings. slowdown (Stable) (SACP) line Term Bank & LEVERAGE with
Slide 25: Liquidity impact of rating downgrade
PERFORMANCE manages downgrade and Contingent money contingent market andare liabilities reserves funds included obligations CAPITAL or 6for 6loss inDerivatives potential following the of&Liquidity secured LEVERAGE rating potential margining—1 funding Risk actions Appetite LIQUIDITY future capacity i
Slide 26: Key messages
PERFORMANCE diversified eliminating on 2014, to maturities Regulation adapt good well to track “higher in international reform marginal Robust excess record requirement “CAPITAL liquidity Established of in businesses the reducing bank PRA_s position, & focused inLEVERAGE and track RWAs end-state Lev
Slide 27: Appendix—Strategy
PERFORMANCE 27 | Fixed Income Investor CAPITAL Presentation & LEVERAGE _ 2014LIQUIDITY Interim Results & FUNDING ASSET QUALITY CREDIT RATING APPENDIX—STRATEGY APPENDIX—DATA OVERVIEW Appendix—Strategy
Slide 28: Delivering a simpler, focused Barclays
PERFORMANCE simplifying Delivering aBarclays structurally CAPITAL Rightsizing lower&cost LEVERAGE andbase focusing Generating LIQUIDITY the Investment higher & andFUNDING Bank moreEstablishing sustainable ASSETareturns QUALITY dedicated 28 | Non-Core Fixed CREDITIncome RATING unitInvestor and aAPPEN
Slide 29: Financial commitments
PERFORMANCE financial Adjusted commitments operatingCAPITAL expenses 1 Capital <Ł14.5bn & LEVERAGE CRD IV Barclays FL CET1 LIQUIDITY Non-Core ratio >11.0% & 6 Returns FUNDING Group Drag 2ASSET Leverage on adjusted QUALITY Leverage RoE <(3%) CREDIT ratio 29 >4.0% |RATING Fixed 3 Dividend Income APPEN
Slide 30: H1 2014 adjusted results
PERFORMANCE simpler, Ł764m 2014 (RWA) was 12.6% adjusted Ł324bn PBT focused | 30 Ł484m results1 |Profit Fixed and CAPITAL PBT balanced before Income Income Ł1,058m tax &structure Ł12.7bn Investor LEVERAGE Ł3.8bn LBTReturn Barclays Presentation Average Ł491mLIQUIDITY onRoE Group allocated average _12
Slide 31: Reallocating RWAs
PERFORMANCE reallocating Ł436bn 222 methodology presented CoreŁ436bn IB at RWAs the Core setGroup c.Ł400bn out IB CAPITAL toin 28% drive Strategy BCBSc.120 c.55% growth &Jan-14 Update LEVERAGE d30% BNC andproposals. c.120 BNC returns on 8th26% The LIQUIDITY May 2013 All Core c.115 other pre-resegmen
Slide 32: Investment Bank as proportion of Group
PERFORMANCE Investment 69%1 Results 68%1Bank 5% 21% asCAPITAL a proportion 13% 29% & 33% LEVERAGE of the 9%Group 16% LIQUIDITY Group 9% PCBRWA Barclaycard splits & FUNDING _ June Africa 2014 ASSET Banking Group QUALITY BNC Income 1 Head splits CREDIT office _ June RATING has 2014 1%Investment of APP
Slide 33: Tightly managed Investment Bank
PERFORMANCE tightly IB leverage our Anticipate in Investor 2016 25 pre-CRD c.300 managed 1Presentation regulatory 2016 meaningful c.80 IVleverage to Rates c.50 CAPITAL reduce add-ons _c.1801 reduction portfolio 2014 exposure RWAs are Interim IB & exited “LEVERAGE 90 in and Reduction estimated 2014,
Slide 34: Non-Core assets and run-off
PERFORMANCE assets Trading Total Portfolio Preliminary Investment are22 Assets majority book numbers Book run-off Bank CAPITAL of as Non-Core 142 and Non-Core presented Non-strategic Trading 24 & c.10 LEVERAGE Portfolios c.1,500 at Pre-CRD book thebusinesses Group run-off c.90 and IVLIQUIDITY commod
Slide 35: Exit Quadrant and Europe retail
PERFORMANCE Exit and c.2 retail assets Corporate Corporate Quadrant and principally c.800 is estimated other c.15 Europe Europe Corporate assets relates 80bps at CAPITAL c.Ł60bn Exit constitute retail “to198 The Quadrant high Exit 12 & additional 35quality LEVERAGE remainder Exit Quadrant | Fixed Fa
Slide 36: Expected Core RoE target
PERFORMANCE expected Non-core target >12% c.6% Fixed to Group Income by<3% to 2016, 2013 maintain Core inInvestor 2013-16 achieved 2016, Core CAPITAL average of Presentation Average Proforma which through: adjusted &c.50bps LEVERAGE allocated base Income _ 2014 RoE to is meet Europe equity growth/ I
Slide 37: Cost savings and operating expenses
PERFORMANCE all increased from technology plus exits, and businesses Ł24m additional increased branch customers_ ofacross rationalisation CTA Operating Investment customers_ Africa spend CAPITAL self-serve expenses to Africa Bank self-serve date in&Europe Banking PCB LEVERAGE 37 3,193 progress | Fix
Slide 38: Group cost targets and guidance
PERFORMANCE Group c.16.3 has reductions Corebeen cost and 17 cost spent Non-Core c.16.2 target and guidance1 to greater of 16 date; CAPITAL <Ł14.5bn 16 38(Łbn) levels 15 an | Fixed 15 additional Core <14.5 of assumes &Income automation LEVERAGE cost 14Ł800m constant 14 targets1 Investor 13inis 13LIQ
Slide 39: Appendix—Data
PERFORMANCE Fixed Income Investor CAPITAL Presentation & LEVERAGE _ 2014 Interim LIQUIDITY Results & FUNDING ASSET QUALITY CREDIT RATING APPENDIX—STRATEGY APPENDIX—DATA OVERVIEW Appendix—Data 39 |
Slide 40: Net interest income and margin
PERFORMANCE and driven Banking decline Ł5.6bn, 322 customer NIM 326by in reflecting to income growth assets strong Markets currency and as savings was driving modest the CAPITAL Net liabilities2 moves up denominator interest 8% and NII growth 272 excluding Core mortgage &margin2,3 (Łbn) 273 LEVERAGE
Slide 41: CET1 capital and RWAs
PERFORMANCE (Łm) (2,063) (2,479) reserves losses loaded (Łbn) Requirements rulebook, adopted RWAs respectively CET1 31 442.5 capital on have Common (4,326) (2,492) by related December liabilities including the been 3| 4and 411.0 Directive EC The Adjustment Goodwill toEquity revised Ł411bn gains CAPI
Slide 42: Leverage exposure
PERFORMANCE exposure1 netting Derivatives 92 adjustments (2.2) restated 60(2.2) 29adjustments toTotal PRA include 364 (22) Securities adjusted Leverage 299 (32) the CAPITAL for 276 (18) impact derivatives Tier IFRS Financing exposure Total 1& ofReverse Capital LEVERAGE other IAS(288) BCBS Transactio
Slide 43: Wholesale funding composition
PERFORMANCE composition1 years paper placement) 85.5 15.5 wholesale balances. European Results 17.2 15.9 years 2.8 It 2.5 32.7 6.3 Central funds Covered months does 0.1 82.0 >3 43.5 comprises not — >6 Bank_s 27.1 CAPITAL months 178.9 5.4 >1 bonds include 33.8 month ——5.4 Of 3/the Deposits year ABS—3
Slide 44: Eurozone exposures
PERFORMANCE the Residential 6,658 Presentation Eurozone 52,793mortgages _As 12014 Total at CAPITAL 30 Interim net June 11,710 on-balance 2014 Results & 14,284 LEVERAGE (Łm) sheet 3,187 Spain exposure 92Italy LIQUIDITY 29,273 Portugal as Other at 30& Ireland June retail FUNDING 2014 lending Total for
Slide 45: European regulatory developments and bail-in
PERFORMANCE European regulatory institutions liabilities investment instruments issuance they anticipation has allocating (Section be an Presentation acknowledgement treated insolvency. begun are bound 48B(8)) date) of Bank equally losses the response firms: with with of original _ process _2014 “th
Slide 46: Regulatory timeline
PERFORMANCE timeline 1 disclosures compliance Fully 2.5%, determined, unencumbered including CRDIV in announcement, Jan 2018 2016 phased-in a countercyclical |requires Timeframe 3disclosure; As 1starts compliance but Jan per high the main currently full 2017 in _Monitoring CAPITAL PRA Jan quality ba
Slide 47: Contact—Debt Investor Relations
Contact—Debt Investor Relations sofia.lonnqvist@barclays.com julie.stanzl@barclays.com Team Richard Caven Sofia Website: Lonnqvist barclays.com/barclays-investor-relations.html Julie Stanzl +44 (0)20 7116 2809 +44 (0)20 47 | 7116 Fixed5716 Income +44Investor (0)20 7116 Presentation 7748 richard.cave
Slide 48: Disclaimer
Disclaimer any contains amended, that _anticipate_, others, of connection future events practices conduct global in Eurozone; Group_s forward-looking fiscal should Authority, statements should, mayvaluation dividends offer no have file year operations, macroeconomic and not statements forward-lookin
Slide 49: Disclaimer (SEC)
Disclaimer (_SEC_) of Alternatively, Financial consistent directly Barclays adjusting reconciled measures sec.gov/Archives/edgar/data/312069/000119312514286022/d765399dex991. is the profitbefore provision adjusted represents 2014 the the provision Interim non-IFRS Securities able profit management.
Slide 50: Disclaimer (continued)
Disclaimer impairment. PPI Form divided July profit of Office GBP rates (_Basel Directive 2014 insurance the five redress; 30 between when Interim 6-K) after parent and Operating Form by III: 2013/36/EU Other the adjusted tax divided comparing (continued) The A the claims. divided Results 6-K) the b
Slide 51: Disclaimer (continued)
Disclaimer Supervision. January definition that predecessor measure occurred (CUSIP: leverage Total the under be total Form included PRA of assets assets 6-K IFRS; other 2014 starting leverage exposure 06738EAB1 under and for under (continued) under in of financial “The (_Basel athe Estimated the th