Barclays Plc · LSE:BARC
Barclays — Société Générale conference (November 2012)
20 slides from Barclays's conference presentation, Nov 29, 2012
Slide 1: Société Générale conference: Barclaycard
Société Générale conference Barclaycard David Chan, CEO, Barclaycard Consumer Europe 29th November
Slide 2: Barclaycard makes a material contribution to Barclays in Q3 '12 (YTD)
Barclaycard makes a material contribution to Barclays in Q3 ’12 (YTD) Barclays PBT (£m) RBB PBT by business (£m) 5,954 2,475 Barclaycard 1,150 46% RBB RBB 1,829 1,146 46% 2,475 UKRBB (30%) 42% Africa 330 13% ERBB (151) -6% All PBT figures quoted throughout this presentation are on an adjusted basis
Slide 3: Barclaycard is a broad international payments business
Barclaycard is a broad international payments business . . . Barclaycard YTD Q3 2012 Income Business Payment £3,072m Products • Payment Acceptance • Commercial Payments 15% • Partner Sales Finance UK Consumer 47% Credit Cards International Consumer 38% Credit Cards • United States • Germany • South
Slide 4: ...with diversified sources of income
. . . with diversified sources of income Income - by source (2011) Bank Channel Open Market 14% 49% 36% Business Partnerships 4
Slide 5: Traditional Retail Banks vs Integrated Payment Providers
Traditional Retail Banks Consumers Consumers Issuer Switch Acquirer Businesses Businesses Integrated Payment Providers Consumers Consumers Issuer Switch Acquirer Businesses Businesses 5
Slide 6: A Payments Market Leader…
A Payments Market Leader… vs. UK Bank Peers vs. Global Peers #1 Global peers #8 Barclaycard Global peers #10 Based on payment volume, excluding debit issuing. Barclaycard estimates 6
Slide 7: YTD Q3 '12 Key Facts
YTD Q3 ‘12 Key Facts* 9% 21% £176bn PAYMENTS YoY £1.2bn YoY PBT 8% +430bps £31bn LOANS & ADVANCES YoY 22.7% YoY ROE >250k BUSINESS 1% YoY 2.7m NEW ORGANIC 25% YoY PARTNERSHIPS ACCOUNTS •All metrics are YTD Q3 2012 v YTD Q3 2011
Slide 8: Business growth is offsetting margin pressure
Business growth is offsetting margin pressure Income Margin (NIM) Net YTD InterestYTD Q3 ’10 Margin Q3 ’11 YTD Q3 ’11 YTD Q3 ’12 9.7% 9.7% YTD Q3 ’10 YTD Q3 ’12 £2,987m £3,113m £3,072m 8.7% 2010 2011 2012 2010 2011 2012 Period End Loans & Advances Payments Processed YTD Q3 ’11 YTD Q3 ’11 YTD Q3 ’12
Slide 9: Continued cost discipline is funding growth
Continued cost discipline is funding growth Cost Base (£m) Investment / Non Investment Costs Organic Investment Costs 1,232 Inorganic Non Investment Costs 1,201 48 Cost (exc Investment) / per account 1,150 CAGR 60 15% CAGR 1% 1,141 1,184 60 YTD Q3 ‘10 YTD Q3 ‘11 YTD Q3 ‘12 YTD Q3 ‘10 YTD Q3 ‘11 YTD
Slide 10: Our growth is underpinned by very strong risk management
Our growth is underpinned by very strong risk management Bar clay card Im pairm ent Rat e BCUK 30 + d ay deliquency rat e 8% BCUS 30 + day deliquency rate 7% 6% 5% 4% 3% 2% 1% 0% Q1 10 Q2 Q3 Q4 Q1 11 Q2 Q3 Q4 Q1 12 Q2 Q3 Delinquency rates exclude Egg Acquisition 10
Slide 11: We continue to deliver steady growth and high returns through the cycle
We continue to deliver steady growth and high returns through the cycle YTD Q3 2012 PBT: £1,150m RoE: 22.7% 1,208 18% CAGR 791 17.4% 766 724 603 522 12.5% 11.9% 2006 2007 2008 2009 2010 2011 PBT RoE 11
Slide 12: Pillars for Continued Growth
Pillars for Continued Growth LIVES MADE MUCH EASIER BECOME THE BECOME THE “GO-TO” “GO-TO” BRAND BRAND FOR FOR PAYMENTS PAYMENTS 1 Outpace 2 3 4 market growth in Accelerate Deliver Lead in consumer cards growth in in UK, Germany, step change payments Business- Scandinavia growth in US innovation rela
Slide 13: Pillars for Continued Growth: Outpace market growth in consumer cards
Pillars for Continued Growth 1 Outpace market growth in consumer cards in UK, Germany, Scandinavia & SA • Cost management • Analytics • Great products, offers, service 13
Slide 14: Pillars for Continued Growth: Step change growth in US
Pillars for Continued Growth 1 Outpace 2 market growth in Deliver consumer cards in UK, Germany, step change Scandinavia growth in US & SA • Deepen with existing partners, bring in new ones • Cost management • Open market & mobile commerce niches 14
Slide 15: Pillars for Continued Growth: Business-related Payments
Pillars for Continued Growth 1 Outpace 2 3 market growth in Accelerate Deliver consumer cards growth in in UK, Germany, step change Business- Scandinavia growth in US related Payments & SA • Grow product footprint • Expand distribution • Leverage the franchise - One Barclays • Sustain c.30% RoE 15
Slide 16: Pillars for Continued Growth: Lead in payments innovation
Pillars for Continued Growth 1 Outpace 2 3 4 market growth in Accelerate Deliver Lead in consumer cards growth in in UK, Germany, step change payments Business- Scandinavia growth in US innovation related Payments & SA • Continue to lead in contactless • Lead in mobile • Connect buyers and sellers 1
Slide 17: Pillars for Continued Growth: Mobile
Pillars for Continued Growth 1 Outpace 2 3 4 market growth in Accelerate Deliver Lead in consumer cards growth in in UK, Germany, step change payments Business- Scandinavia growth in US innovation related Payments & SA 1966 1984 Late 1990s 2007 Zip Zap Magstripe Chip & Pin Contactless Mobile 17
Slide 18: Summary
Summary • We are a high return, diversified business • Consistent growth in volumes and profitability • We will continue to lead in payments innovation 18
Slide 19: Legal disclaimers
Legal disclaimers Important Notice The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer to sell or solicitation of any offer to buy any securities or financial instruments, or any advice or recommendation
Slide 20: Legal disclaimers
Legal disclaimers Forward-looking Statements This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Group’s plans a
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