Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (July 2022)
79 slides from Barclays's debt investor presentation, Jul 28, 2022
Slide 1: Barclays PLC Q2 2022 Fixed Income Investor Presentation
Barclays PLC Q2 2022 Fixed Income Investor Presentation 28 July 2022
Slide 2: Strategy
Strategy
Slide 3: Highlights across each of our three strategic priorities
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Highlights across each of our three strategic priorities Deliver next-generation, digitised Capture opportunities as we Deliver sustainable growth
Slide 4: Barclays is well-positioned to deliver sustainable double digit returns
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Barclays is well-positioned to deliver sustainable double digit returns 1 2.2% 2 £(1.0)bn 1.0% Interest rates Impairment Cost dynamics £(0.5
Slide 5: Inflation uncertainty but GDP growth and unemployment resilient
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Inflation uncertainty but GDP growth and unemployment resilient Monthly YoY inflation1 (%) Interest rates (%) Jun-22: 9.40 GBP 5 Year UK base 10 U
Slide 6: Barclays is prepared to navigate this uncertainty
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Barclays is prepared to navigate this uncertainty Dedicated to helping customers, clients and colleagues More conservative risk positioning and ma
Slide 7: We continued to advance our ESG agenda in H122
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES We continued to advance our ESG agenda in H122 • Scope 1 and 2 emissions: -82%1 reduction against 2018 baseline • Green financing: facilitated £11
Slide 8: Strong H122 profitability, continue to target a RoTE >10% in 2022
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Strong H122 profitability, continue to target a RoTE >10% in 2022 H122 metrics Group targets over the medium term Returns Returns Cost efficiency
Slide 9: Outlook
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Outlook Returns • Barclays continues to target a RoTE of >10% in 2022 • Barclays’ diversified income streams position the Group well for the curre
Slide 10: Performance
Performance
Slide 11: Statutory PBT of £3.7bn and RoTE of 10.1% in H122
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Statutory PBT of £3.7bn and RoTE of 10.1% in H122 Strong Income • Attributable profit of £2.5bn1 despite the net of tax impact of Over- operating
Slide 12: Update on Over-issuance of Securities
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Update on Over-issuance of Securities Barclays PLC and Barclays Bank PLC (BBPLC) each filed a Form 20-F/A, completing the restatement process
Slide 13: Overview of financial impacts from Over-issuance of Securities
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Overview of financial impacts from Over-issuance of Securities ` £m FY21 Q122 Q222 H122 • Post-tax net impact of £581m in Income from hedging arra
Slide 14: H122 Group highlights
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES H122 Group highlights • Income up 17% with broad-based and steady growth across all operating businesses Income Costs − Income excluding benefit f
Slide 15: Broad income momentum with H122 Group income up 10% YoY
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Broad income momentum with H122 Group income up 10% YoY1 Strong income growth Drivers of income growth across all operating businesses (£bn) +5% •
Slide 16: Broad-based drivers of income momentum
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Broad-based drivers of income momentum Balance sheet growth Transactional activity recovery +13% +14% +14% 568.7 128.7 145.4 395.8 500.9 348.5 Loa
Slide 17: H122 delivered positive operating cost: income jaws
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES H122 delivered positive operating cost : income jaws1, 2 H122 vs. H121 Cost: income ratio bridge Delivering positive jaws1, 2 7.6% -2pp 4.4% 2.3%
Slide 18: Costs: H122 operating costs (which exclude L&C) +2% YoY
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Costs: H122 operating costs (which exclude L&C) +2% YoY H122 vs. H121 total costs YoY (£m) Key drivers of £0.5bn increase in base costs Structur
Slide 19: FY22 costs expected to be around £16.7bn
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES FY22 costs expected to be around £16.7bn1 Q222 total costs YoY (£m) FY22 costs outlook (£bn) Increase of £1.3bn largely driven by L&C 5,016 c.1.3
Slide 20: Q222 Group highlights
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Q222 Group highlights • Income up 24% driven by strong performances across all operating businesses Income Costs − Income excluding benefit from h
Slide 21: Another strong performance in Q222 across all operating businesses
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Another strong performance in Q222 across all operating businesses Group PBT: AP: RoTE: EPS: £1.5bn £1.1bn 8.7%1 6.4p Barclays UK Consumer, Cards
Slide 22: Mortgage growth continues, well positioned for rising rates and unsecured recovery
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Mortgage growth continues, well positioned for rising rates and optimistic about recovery in unsecured lending Indexed card spending data1 Mortgag
Slide 23: Income: 10% growth YoY
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Income: 10%1 growth YoY Q222 Group income up 10%1 YoY (£m) • Global Markets +31%1 6,708 6,496 – FICC +71% 758 – Equities -16%, excluding benefit f
Slide 24: Q222 Barclays UK
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Q222 Barclays UK RoTE of 18.4% reflecting higher rates, with Q222 NIM of 2.71% • Income up 6% capturing the benefit from rising Q221 Q321 Q421 Q12
Slide 25: Q222 Barclays International
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Q222 Barclays International RoTE of 8.4% driven by strong income growth, offset by litigation and conduct charges • Income up 34% Income Costs − D
Slide 26: Q222 Barclays International: Corporate & Investment Bank
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Q222 Barclays International: Corporate & Investment Bank RoTE of 7.1%. Excluding the impact of the Over-issuance of Securities, RoTE would be 11.4
Slide 27: Q222 Barclays International: Consumer, Cards & Payments
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Q222 Barclays International: Consumer, Cards & Payments RoTE of 17.8% reflecting strong income performance driven by economic recovery and busines
Slide 28: Q222 Head Office
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Q222 Head Office Q221 Q321 Q421 Q122 Q222 • Q222 income of £(132)m including: − £(42)m loss on sale from the partial Income 23 disposal of our sta
Slide 29: Asset Quality
Asset Quality
Slide 30: Impairment: Q222 charge of £0.2bn, lower unsecured balances and maintained coverage
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Impairment: Q222 charge of £0.2bn, reflecting lower unsecured lending balances and maintained appropriate coverage ratios 30 day arrears rates Cre
Slide 31: Retaining management adjustments due to uncertainty
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Retaining management adjustments due to uncertainty Macroeconomic variables (MEVs) Balance sheet impairment allowance and management adjustment Q2
Slide 32: Jun-22 coverage ratios remain strong
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Jun-22 coverage ratios remain strong Credit cards, unsecured loans and other retail lending Wholesale loans Gross exposure (£bn) Impairment allowa
Slide 33: Jun-22 UK and US cards coverage ratios remain robust
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Jun-22 UK and US cards coverage ratios remain robust UK cards US cards Gross exposure (£bn) Impairment allowance (£bn) Coverage ratio Gross exposu
Slide 34: Wholesale exposures are diversified and appropriately covered
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Wholesale exposures are diversified and appropriately covered, including in selected sectors Wholesale and selected sector exposure Wholesale Whol
Slide 35: Retail portfolios in the UK and US continue to be appropriately positioned
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Retail portfolios in the UK and US continue to be appropriately positioned • Strong balance growth supported by elevated market 158.2 159.7 demand
Slide 36: Capital & Leverage
Capital & Leverage
Slide 37: Q222 CET1 ratio of 13.6%
STRATEGY, TARGETS CAPITAL CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & & LEVERAGE LEVERAGE MANAGEMENT & LEGAL ENTITIES Q222 CET1 ratio of 13.6% 42bps generated from profits more than offset by reserve movements and RWA growth QoQ CET1 ratio1 move
Slide 38: H122 CET1 ratio of 13.6%
STRATEGY, TARGETS CAPITAL CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & & LEVERAGE LEVERAGE MANAGEMENT & LEGAL ENTITIES H122 CET1 ratio of 13.6% 94bps generated from profits more than offset by regulatory changes and RWA growth QoQ YTD CET1 CET1 r
Slide 39: RWA increase driven by book growth and FX
STRATEGY, TARGETS CAPITAL CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & & LEVERAGE LEVERAGE MANAGEMENT & LEGAL ENTITIES RWA increase driven by book growth and FX QoQ RWA movements (£bn) (1.4) 9.0 (0.1) 6.6 1.7 [x.x] 344.5 328.8 337.0 337.0 328.8 3
Slide 40: 13-14% CET1 ratio target continues to provide appropriate headroom above MDA hurdle
STRATEGY, TARGETS CAPITAL CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & & LEVERAGE LEVERAGE MANAGEMENT & LEGAL ENTITIES 13-14% CET1 ratio target continues to provide appropriate headroom above evolving MDA hurdle Illustrative evolution of minimum
Slide 41: Group leverage position appropriately managed
STRATEGY, TARGETS CAPITAL CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & & LEVERAGE LEVERAGE MANAGEMENT & LEGAL ENTITIES Group leverage position appropriately managed Illustrative evolution of minimum leverage requirements and buffers under the UK
Slide 42: Capital structure well managed
STRATEGY, TARGETS CAPITAL CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & & LEVERAGE LEVERAGE MANAGEMENT & LEGAL ENTITIES Capital structure well managed Prudent headroom above regulatory capital minimums Capital structure and requirements Balanced t
Slide 43: IFRS 9 transitional relief of c.20bps as at Jun-22
STRATEGY, TARGETS CAPITAL CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & & LEVERAGE LEVERAGE MANAGEMENT & LEGAL ENTITIES IFRS 9 transitional relief of c.20bps as at Jun-22 Constructive regulatory action in Q220 gave greater relief for Stage 1 and 2
Slide 44: Pension deficit reduction contributions
STRATEGY, TARGETS CAPITAL CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & & LEVERAGE LEVERAGE MANAGEMENT & LEGAL ENTITIES Pension deficit reduction contributions Potential acceleration of CET1 ratio headwinds from pension reduction contributions • D
Slide 45: Balance Sheet Management
Balance Sheet Management
Slide 46: MREL position well established
STRATEGY, TARGETS CAPITAL BALANCESHEET BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT MANAGEMENT & LEGAL ENTITIES MREL position well established Expect c.£9bn of MREL issuance for 2022 plan, with c.£5.5bn remaining MREL position of £106
Slide 47: Continue to target c.£9bn of HoldCo issuance for 2022 plan
STRATEGY, TARGETS CAPITAL BALANCESHEET BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT MANAGEMENT & LEGAL ENTITIES Continue to target c.£9bn of HoldCo issuance for 2022 plan Annual HoldCo issuance volume (£bn)1,2 2022 HoldCo issuance by
Slide 48: High quality liquidity position
STRATEGY, TARGETS CAPITAL BALANCESHEET BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT MANAGEMENT & LEGAL ENTITIES High quality liquidity position Strong liquidity position, with Group LCR well above regulatory requirements Comfortably e
Slide 49: Growing deposit base
STRATEGY, TARGETS CAPITAL BALANCESHEET BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT MANAGEMENT & LEGAL ENTITIES Growing deposit base Material deposit growth since the start of the pandemic, with balances remaining elevated Deposit dyn
Slide 50: Structural hedge
STRATEGY, TARGETS CAPITAL BALANCESHEET BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT MANAGEMENT & LEGAL ENTITIES Structural hedge Structural hedge programme update Dec-19 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Structural hedg
Slide 51: Interest rate sensitivity
STRATEGY, TARGETS CAPITAL BALANCESHEET BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT MANAGEMENT & LEGAL ENTITIES Interest rate sensitivity Illustrative sensitivity of Group NII to a parallel shift in interest rate curves1 • This analys
Slide 52: Wholesale funding composition as at 30 June 2022
STRATEGY, TARGETS CAPITAL BALANCESHEET BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT MANAGEMENT & LEGAL ENTITIES Wholesale funding composition as at 30 June 20221 1-3 3-6 6-12 Total 1-2 2-3 3-4 4-5 As at 30 June 2022 (£bn) <1 month >5
Slide 53: Credit Ratings
Credit Ratings
Slide 54: Strategic priority to maintain strong ratings
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Strategic priority to maintain strong ratings Current Senior Long and Moody’s Standard & Poor’s Fitch Short Term ratings Baa2 BBB A
Slide 55: Barclays rating composition for senior debt
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Barclays rating composition for senior debt Moody’s Standard & Poor’s Fitch BPLC BBPLC BBUKPLC BPLC BBPLC BBUKPLC BPLC BBPLC BBUKPL
Slide 56: ESG
ESG
Slide 57: We measure our progress against key metrics and targets
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES We measure our progress against key metrics and targets FY21 Targets as at FY21 H122 updates performance GHG emissions Scope 1 and 2 (market-
Slide 58: Key updates to approach and targets as part of Say on Climate vote
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Key updates to our approach and targets as part of Say on Climate advisory vote at 2022 AGM • Emissions reduction: o -90% Scope 1 and 2 GHG em
Slide 59: Reducing our financed emissions – methodology
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES 2 Reducing our financed emissions – methodology • Using the IEA NZE2050 1.5°C scenario to derive benchmarks and to set our 2030 targets Scenar
Slide 60: Restrictive policies – thermal coal mining
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES 2 Restrictive policies – thermal coal mining We have announced a tightening of our thermal coal policy, including final phase-out dates for fi
Slide 61: Restrictive policies – coal-fired power generation
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES 2 Restrictive policies – coal-fired power generation We have announced a tightening of our thermal coal policy, including final phase-out date
Slide 62: 2021 BoE CBES results indicated profitability drag is manageable
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES 2021 BoE CBES1 results indicated that the profitability drag is manageable although banks have more to do on climate risk Key challenges for t
Slide 63: Continued engagement on the transition towards a nature-positive economy
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Continued engagement on the transition towards a nature-positive economy Addressing nature and biodiversity considerations in our financing an
Slide 64: Executing our Diversity, Equity and Inclusion (DEI) strategy
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Executing our Diversity, Equity and Inclusion (DEI) strategy against five DEI priorities, through the lens of six core agendas Our focus areas
Slide 65: Providing support to those in need
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Providing support to those in need How we are supporting How we are supporting our UK retail Ukraine and its citizens customers with the cost
Slide 66: Expanding our sustainable finance activities through specialist teams
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Expanding our sustainable finance activities through specialist teams Green Home and Buy-to-Let Mortgages Corporate and Investment Bank c.£0.7
Slide 67: Barclays remains focused on maturing its resilience capability
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Barclays remains focused on maturing its resilience capability Robust processes in place with strong foundations Established intelligence-led
Slide 68: Divisions & Legal Entities
Divisions & Legal Entities
Slide 69: Legal entity structure of the Group since April 2018
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Legal entity structure of the Group since April 2018 Barclays PLC Barclays International Barclays UK and Head Office1 Divisions Personal Banking C
Slide 70: Strong legal entity capital and liquidity positions
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Strong legal entity capital and liquidity positions Continue to manage legal entity capital ratios with appropriate headroom to requirements Barcl
Slide 71: Appendix
Appendix
Slide 72: H122/Q222 notable items
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES H122/Q222 notable items Six months ended (£m) Jun-22 Jun-21 Income Income from hedging arrangements for Over-issuance of Securities 758 -
Slide 73: H122/Q222 Group impacts from Over-issuance of Securities
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES H122/Q222 Group impacts from Over-issuance of Securities Six months ended (£m) Jun-22 (Statutory) Adjustments Jun-22 (Adjusted) Income 13
Slide 74: H121/Q221 Group impacts from Over-issuance of Securities
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES H121/Q221 Group impacts from Over-issuance of Securities Six months ended (£m) Jun-21 (Statutory) Adjustments Jun-21 (Adjusted) Income 11
Slide 75: H122/Q222 BI and CIB impacts from Over-issuance of Securities
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES H122/Q222 BI and CIB impacts from Over-issuance of Securities Barclays International (BI) Corporate and Investment Bank (CIB) Jun-22 Jun-
Slide 76: H121/Q221 BI and CIB impacts from Over-issuance of Securities
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES H121/Q221 BI and CIB impacts from Over-issuance of Securities Barclays International (BI) Corporate and Investment Bank (CIB) Jun-21 Jun-
Slide 77: Exchange rates and share count information
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Exchange rates and share count information YTD % YoY % Exchange rates Jun-22 Dec-21 Jun-21 change change Period end - USD/GBP 1.22 1.35 1
Slide 78: Contacts – Debt Investor Relations Team
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Contacts – Debt Investor Relations Team Dan Colvin Joanne Cash Christy Zakarias +44 (0)20 7116 6533 +44 (0)20 7116 4215 +44 (0)20 7116 4543 daniel
Slide 79: Disclaimer
STRATEGY, TARGETS CAPITAL BALANCE SHEET DIVISIONS PERFORMANCE ASSET QUALITY CREDIT RATINGS ESG APPENDIX & GUIDANCE & LEVERAGE MANAGEMENT & LEGAL ENTITIES Disclaimer Important Notice The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. The information, statements and opin