Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (April 2024)
49 slides from Barclays's debt investor presentation, Apr 25, 2024
Slide 1: Q1 2024 Fixed Income Investor Presentation
Q1 2024 Fixed Income Investor Presentation 25th April 2024
Slide 2: Why Barclays
Why Barclays Barclays Q1 2024 Results April 2024 2 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 divisi
Slide 3: Performance
Performance
Slide 4: We set out financial targets and are on the path to delivery
We set out financial targets and are on the path to delivery Barclays Q1 2024 Results April 2024 4 Targets Q124 2024 2026 Statutory RoTE 12.3% >10% >12% Total payout Broadly in line with 2023 At least £10bn1 2024-2026 Investment Bank RWAs 57% c.50% (% of Group) CET1 ratio 13.5% 13-14% 13-14% Support
Slide 5: Q124 performance division by division
Q124 performance division by division Barclays Q1 2024 Results April 2024 5 Q124 RoTE Barclays UK 18.5% FY26 target: high teens% 15.2% Execution progress UK Corporate Bank FY26 target: high teens% Realised £0.2bn of c.£1bn FY24 gross cost efficiency savings Private Bank & Wealth 28.7% Management FY2
Slide 6: Group Q124
Group Q124 Barclays Q1 2024 Results April 2024 6 £7.0bn £4.2bn Income Costs Q123: £7.2bn Q123: £4.1bn 60% £2.8bn Cost: income ratio Profit before Q123: 57% impairment Q123: £3.1bn £0.5bn 51bps Impairment Loan loss rate Q123: £0.5bn Q123: 52bps 10.3p 12.3% EPS RoTE Q123: 11.3p Q123: 15.0% 13.5% 335p
Slide 7: Q124 Group RoTE of 12.3%; FY24 RoTE target >10%
Q124 Group RoTE of 12.3%; FY24 RoTE target >10% Barclays Q1 2024 Results April 2024 7 Group RoTE (%) £120m BoE levy (1.8) 0.3 (0.7) 0.1 (0.6) Reduced FICC income – lower client activity levels and non- Headwind includes less repeat of Q123 inflation negative cash flow benefit in Financing1 hedge res
Slide 8: Income down 4% YoY; more stable income streams 68% of Group income
Income down 4% YoY; more stable income streams 68% of Group income Barclays Q1 2024 Results April 2024 8 Group income (£bn) -4% YoY More stable income streams More stable income More stable income streams contribute streams expected to 7.2 7.0 68% of Group income in contribute >70% of 6.5 0.6 Invest
Slide 9: Q124 Group NII of £2.7bn stable YoY; FY24 Group NII guidance £10.7bn
Q124 Group NII of £2.7bn1 stable YoY; FY24 Group NII guidance £10.7bn1,2 Barclays Q1 2024 Results April 2024 9 Net interest income (£bn) Broadly stable YoY 2.7 2.7 2.7 Group NII (excluding IB and HO) 2.0 1.1 1.1 1.1 c.£10.7bn 2024 guidance1,2 UK Corporate Bank, • £2.7bn Group NII in Q124 Private Ban
Slide 10: £1.1bn structural hedge income in Q124
£1.1bn structural hedge income in Q124 Barclays Q1 2024 Results April 2024 10 Gross hedge income expected to continue to grow 10.0 09.0 Q124: 3.8% Gross contribution 3.4% resilient to marginal 08.0 4.1% changes in rates 07.0 and notionals GBP 5yr Q124: 1.8% swap rate1 06.0 1.0% 0.9% Average 05.0 1.5
Slide 11: Q124 operating costs down 3%, total costs up 2% YoY
Q124 operating costs down 3%, total costs up 2% YoY Barclays Q1 2024 Results April 2024 11 Group total costs (£bn) Efficiency savings more than offsetting Includes £120m BoE Group c.63% CIR 2024 target inflation and regulation & control spend, enabling investments levy 60% Group CIR in Q124 Cost: in
Slide 12: Barclays UK Q124
Barclays UK Q124 Barclays Q1 2024 Results April 2024 12 £1.8bn £1.5bn Targets 2026 Income Net Interest Income Q123: £2.0bn Q123: £1.6bn 58% £0.1bn RoTE High teens % Cost: income ratio Impairment Q123: 56% Q123: £0.1bn Mid-single digits CAGR Income £0.7bn 11bps FY24 NII c.£6.1bn2 PBT Loan loss rate Q
Slide 13: Barclays UK delivered 18.5% RoTE in Q124
Barclays UK delivered 18.5% RoTE in Q124 Barclays Q1 2024 Results April 2024 13 RoTE (%)1 Income by product (£m) YoY Costs (£m)1 1,961 Includes £54m BoE levy 1,792 1,826 -7% Business 1,649 461 +2% Banking 351 483 469 247 Barclaycard 276 242 229 -7% YoY Consumer UK 1,007 1,094 1,019 1,063 -3% 1,022 1
Slide 14: Deposit trends as anticipated; expect future lending growth
Deposit trends as anticipated; expect future lending growth Barclays Q1 2024 Results April 2024 14 BUK deposit balances and mix (£bn) BUK loans and advances1 (£bn) -£4.5bn -£6.6bn -£2.1bn -£3.9bn 254 250 208 207 205 203 243 241 Business 201 237 Banking 26 24 23 23 Business 22 60 59 Barclaycard 9 9 1
Slide 15: UK Corporate Bank Q124
UK Corporate Bank Q124 Barclays Q1 2024 Results April 2024 15 £0.4bn £0.3bn Targets 2026 Income Costs Q123: £0.5bn Q123: £0.2bn RoTE High teens % 58% £15m Deliver high-quality Cost: income ratio Impairment Income growth across broad Q123: 45% Q123: £24m sources £0.2bn 23bps Cost: income ratio High 4
Slide 16: UK Corporate Bank delivered Q124 RoTE of 15.2%
UK Corporate Bank delivered Q124 RoTE of 15.2% Barclays Q1 2024 Results April 2024 16 RoTE (%)1 Income by product (£m) YoY Income by type (£m) YoY 463 434 -6% 463 434 -6% 395 395 342 61 Higher liquidity 72 +18% 342 153 Corporate 64 157 +3% pool income 62 148 Lending Non-NII 109 402 362 -10% Transact
Slide 17: Private Bank & Wealth Management Q124
Private Bank & Wealth Management Q124 Barclays Q1 2024 Results April 2024 17 £0.3bn £0.2bn Income Costs Targets 2026 Q123: £0.3bn Q123: £0.1bn 70% £0.1bn RoTE >25% Cost: income ratio PBT Q123: 56% Q123: £0.1bn Deliver high-quality Income growth across broad 28.7% £189.1bn sources RoTE Client Assets
Slide 18: Private Bank & Wealth Management delivered Q124 RoTE of 28.7%
Private Bank & Wealth Management delivered Q124 RoTE of 28.7% Barclays Q1 2024 Results April 2024 18 RoTE (%)1 Income by type (£m) Costs (£m)1 RoTE pre WM&I2 313 312 transfer: impact c.3.4% 259 34.5 214 131 137 3.4 78 Non-NII 68 228 217 NII 146 181 182 175 144 119 Q122 Q123 Q423 Q124 Q122 Q123 Q423
Slide 19: Investment Bank Q124
Investment Bank Q124 Barclays Q1 2024 Results April 2024 19 £3.3bn £2.0bn Targets 2026 Income Costs Q123: £3.6bn Q123: £2.0bn 60% £10m release RoTE In line with Group Cost: income ratio Impairment Q123: 57% Q123: £25m charge Income High single digit CAGR £1.3bn -4bps PBT Loan loss rate Q123: £1.5bn
Slide 20: Investment Bank delivered Q124 RoTE of 12.0%
Investment Bank delivered Q124 RoTE of 12.0% Barclays Q1 2024 Results April 2024 20 RoTE (%)1 Income by business (£m)2 Costs (£m)1,2 YoY 3,641 3,569 3,328 -7% Investment 648 603 Banking 617 +2% 2,037 YoY Intermediation 2,055 1,690 1,587 -6% 2,081 2,030 1,999 -2% 510 1,890 Financing3 582 802 573 700
Slide 21: Investment Bank income down 7% YoY; strong performance in Equities
Investment Bank income down 7% YoY; strong performance in Equities Barclays Q1 2024 Results April 2024 21 Global Markets Investment Banking Global Markets income (£m)1 Investment Banking Fees (£m) International Corporate Bank -8% YoY +2% YoY income (£m) -11% YoY 2,696 -5% USD 648 +6% USD 474 603 617
Slide 22: US Consumer Bank Q124
US Consumer Bank Q124 Barclays Q1 2024 Results April 2024 22 £0.9bn 11.12% Targets 2026 Income Net Interest Margin Q123: £0.8bn Q123: 10.97% RoTE In line with Group £0.4bn 46% Costs Cost: income ratio Q123: £0.4bn Q123: 52% End Net Receivables c.$40bn (c.£31bn) £0.4bn £0.1bn Impairment PBT Net inter
Slide 23: US Consumer Bank delivered Q124 RoTE of 5.3%
US Consumer Bank delivered Q124 RoTE of 5.3% Barclays Q1 2024 Results April 2024 23 RoTE (%)1 Income by type (£m) YoY Costs (£m)1 826 866 859 +4% 192 180 171 -11% 469 YoY 427 401 390 -9% Non-NII 141 686 688 +9% 634 306 NII 328 Q122 Q123 Q423 Q124 Q122 Q123 Q423 Q124 NIM 8.12% 10.97% 10.88% 11.12% CI
Slide 24: Head Office Q124
Head Office Q124 Barclays Q1 2024 Results April 2024 24 Head Office income (£m) YoY 195 194 +22% • Announced sale of performing Italian mortgage portfolio 181 159 German 80 87 +18% FY24 Expected 69 Pre-tax loss RWAs CET1 impact Cards RoTE impact completion 74 66 63 -31% Broadly Payments 90 c.£225m1
Slide 25: Asset quality
Asset quality
Slide 26: LLR of 51bps; within through the cycle guidance of 50-60bps
LLR of 51bps; within through the cycle guidance of 50-60bps Barclays Q1 2024 Results April 2024 26 LLR guidance 800 over FY24-FY26 period 190 Loan loss rate (bps) 636 610 582 600 515 US Consumer Bank Q124 impairment charge: 140 411 Trend towards £410m (+£89m YoY) long term average 337 400 of c.400bp
Slide 27: Higher delinquencies in USCB in line with market trend as anticipated
Higher delinquencies in USCB in line with market trend as anticipated Barclays Q1 2024 Results April 2024 27 Write offs increasing as expected with reserve build slowing 30 days delinquencies 2.7% 2.9% 3.1% 2.2% 2.3% 2.4% 2.0% 1.6% 1.4% Loan loss rate1 (bps) 259 179 257 337 515 411 582 636 610 449 R
Slide 28: Well provisioned balance sheet
Well provisioned balance sheet Barclays Q1 2024 Results April 2024 28 Balance sheet provisions for ECL1 (£bn) Credit impairment charges (£m) 6.3 6.3 524 513 Barclays UK Off-balance 0.5 58 0.6 UK Corporate sheet 113 15 Bank 24 25 On-balance US Consumer 5.7 5.8 410 sheet Bank 321 HO 38 40 Investment -
Slide 29: Long-term prudent risk positioning in our credit card portfolios
Long-term prudent risk positioning in our credit card portfolios Barclays Q1 2024 Results April 2024 29 UK cards US cards • Balances c.33% lower vs. FY19 with strong and stable credit quality • Controlled portfolio growth with improved risk mix • Repayment rates remain elevated across the risk spect
Slide 30: Commercial Real Estate exposure is modest and well managed
Commercial Real Estate exposure is modest and well managed Barclays Q1 2024 Results April 2024 30 December 2023: 4.5%1 of customer loans and advances (L&A), with a weighted average LTV of 49%2 Retail Customer loans & Construction £1.0bn £348bn advances3 £2.7bn Residential Q423: £4.2bn £15.8bn CRE ex
Slide 31: Resilient mortgage book with customers proactively locking in rates
Resilient mortgage book with customers proactively locking in rates Barclays Q1 2024 Results April 2024 31 Mortgage portfolio as at Q124 Maturity profile as at Q124 • 53.6% average balance weighted LTV of mortgage stock • 15% of total balances maturing during 20241 o 40.1% average valuation weighted
Slide 32: Capital and leverage
Capital and leverage
Slide 33: CET1 ratio within the 13-14% target range
CET1 ratio within the 13-14% target range Barclays Q1 2024 Results April 2024 33 Q124 CET1 ratio movements (9bps) 44bps (27bps) (29bps) (12bps) 13.8% 13.5% 13.5% Q423 FY23 buyback Q423 rebased Attributable Dividend RWA Other Q124 profit accrual ex. FX inc. FX CET1 Capital 47.3 (1.0) 46.3 1.6 (0.3) (
Slide 34: RWA growth in line with seasonality and expectations
RWA growth in line with seasonality and expectations Barclays Q1 2024 Results April 2024 34 Risk weighted assets (£bn) (1.0) 1.2 3.1 0.5 0.0 3.0 Blackstone transaction Expected seasonal and seasonal paydown of client activity balances Regulatory model changes which are expected to be partially offse
Slide 35: Risk weighted assets
Risk weighted assets Barclays Q1 2024 Results April 2024 35 Q124 RWA movements (£bn) 0.1 (0.8) 4.3 3.3 349.6 342.7 Q423 Book size Methodology and policy FX¹ Other Q124 1 Foreign exchange movements does not include the impact of foreign exchange for modelled market risk or operational risk | Note: Ch
Slide 36: CET1 ratio with significant headroom to MDA
CET1 ratio with significant headroom to MDA Barclays Q1 2024 Results April 2024 36 CET1 minimum requirements at Q124 Leverage minimum requirements at Q124 MDA1 12.0% CCyB 0.9% Reg Min 4.08% CCB 2.5% CCLB 0.30% G-SII 1.5% G-SII 0.53% 13.5% Pillar 2A 2.6% 4.9% 4.7% BoE minimum leverage 3.25% requireme
Slide 37: Operating with a prudent buffer to each tier of capital requirements
Operating with a prudent buffer to each tier of capital requirements Barclays Q1 2024 Results April 2024 37 AT1 and T2 needs managed on a total capital basis Balanced total capital structure As at Q124 • Operating with prudent buffers at each part of the capital stack to manage FX and RWA movements
Slide 38: Balance sheet management
Balance sheet management
Slide 39: MREL position well established
MREL position well established Barclays Q1 2024 Results April 2024 39 MREL position at Q1241 HoldCo issuance 33.4% • c.£12bn 2024 MREL issuance plan expected across Senior, Tier 2 and AT1 (£116.8bn) 30.1% o c.£5.4bn executed YTD across Senior (£105.2bn) o Expect to be a net negative AT1 issuer in 20
Slide 40: Executed c.£5.4bn of c.£12bn 2024 issuance plan
Executed c.£5.4bn of c.£12bn 2024 issuance plan Barclays Q1 2024 Results April 2024 40 2024 HoldCo benchmark Annual HoldCo issuance volume (£bn) and currency1,2 issuance 15.0 14.1 12.1 c.12 Jan-24: EUR 1.0bn 11.5 11.0 Senior 8.6 10.7 7.8 9.8 c.7 6.1 remaining Mar-24: USD 4.5bn multi-tranche 10.2 4.0
Slide 41: Diverse and stable franchise deposit base in Q124
Diverse and stable franchise deposit base in Q124 Barclays Q1 2024 Results April 2024 41 Investment Bank BUK: Personal Banking £128bn, +8% £184bn, -1% • International Corporate Bank3: £95bn, +10% • 73% insured • Treasury deposits: £32bn, +3% • >75% of relationships 5+ years UK Corporate Bank Total P
Slide 42: Prudently managed LCR supported by a highly liquid balance sheet
Prudently managed LCR supported by a highly liquid balance sheet Barclays Q1 2024 Results April 2024 42 Average LCR1 80% of Liquidity Pool held in cash HTC £18bn FVOCI 6% 161% 163% £48bn 159% 157% 156% 156% 157% 157% 159% 15% Q124 Liquidity Pool Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 £323bn Mi
Slide 43: Wholesale funding composition as at December 2023
Wholesale funding composition as at 31 December 20231 Barclays Q1 2024 Results April 2024 43 <1 1-3 3-6 6-12 Total 1-2 2-3 3-4 4-5 As at 31 December 2023 (£bn) >5 years Total month months months months <1 year years years years years Barclays PLC (the Parent company) Senior unsecured 1.2 0.3 1.5 5.5
Slide 44: Strong legal entity capital and liquidity positions
Strong legal entity capital and liquidity positions Barclays Q1 2024 Results April 2024 44 Continue to manage legal entity capital ratios with appropriate headroom to requirements Barclays PLC Barclays Bank UK PLC (BBUKPLC) sub-group Barclays Bank PLC (BBPLC) sub-group Barclays Bank UK PLC (solus) B
Slide 45: Credit ratings
Credit ratings
Slide 46: Targeting Barclays PLC to be “A” composite across all indices over time
Targeting Barclays PLC to be “A” composite across all indices over time Barclays Q1 2024 Results April 2024 46 Strong momentum with Current Senior long and short term ratings 2023 credit rating upgrades Moody’s Standard & Poor’s Fitch • HoldCo Senior composite rate “A” for two of four indices • One
Slide 47: Barclays rating composition for senior debt
Barclays rating composition for senior debt Barclays Q1 2024 Results April 2024 47 Moody’s Standard & Poor’s Fitch BBUK BBUK BBUK BPLC BBPLC BPLC BBPLC BPLC BBPLC PLC PLC PLC Adjusted Baseline baa1 baa1 a3 Stand-Alone Credit Profile a- Viability Rating2 a a a Credit Assessment Macro profile Strong+
Slide 48: Contacts – Debt Investor Relations
Contacts – Debt Investor Relations Barclays Q1 2024 Results April 2024 48 Dan Colvin Justin Lutterbuese +44 (0)20 7116 6533 +44 (0)20 7116 6021 daniel.colvin@barclays.com justin.lutterbuese@barclays.com
Slide 49: Disclaimer
Disclaimer Barclays Q1 2024 Results April 2024 49 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 to