Barclays
Simpler, Better, More balanced
Investor Update: 20
th
February 2024
27
February 2024
Barclays Investor Update
Barclays today
1
Clients defined as any relationship from which we generate >£10,000 income per annum from our existing product set. UK Corporates defined as the stock of companies (group entities considered together) with annual turnover of >£6.5m. Includes clients across UK
Corporate and the International Corporate Bank within the Investment Bank |
2
“=#” rank represents shared rank with another bank whose revenues are within 5% of Barclays. 1H23 Coalition Greenwich Global Competitor Analytics. Peer group is based on the following
banks: BofA Securities, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley and UBS. Analysis is based on Barclays’ internal business structure and internal revenues|
3
Industry rank data per Dealogic for the period
covering 2023 |
4
#6 Global Markets and Investment Banking. Global Markets rank based on Barclays’ calculations using Peer reported financials. Top 10 Peers includes Barclays and; US Peers: Bank of America, Citi, Goldman Sachs, JP. Morgan, Morgan Stanley. European
Peers: BNP Paribas, Credit Suisse, Deutsche Bank, UBS. Investment Banking rank based on Dealogic as at 31 December 2023 |
We have built a leading Global Markets and Investment Banking business
>20m
Barclays UK
customers
25%
UK corporates
are clients
1
20m
US credit
card customers
Strong customer franchises in the UK and US
Top 3
Global Fixed
Income Credit
2
=#1
Fixed Income
Financing
2
#1
UK Investment
Banking Fees
3
Leading non-US
Investment Bank
4
330 years of innovation
28
February 2024
Barclays Investor Update
Over the last decade we have become well-capitalised and leaner
1
Barclays Strategy Update at May 2014. £436bn RWA and 9.3% CET1 ratio as at FY13 results |
2
Litigation and conduct charged to the income statement for the period 2014-2023 including in relation to customer redress, market manipulation and governance. Please see
our Legal, competition and regulatory matters note on pg.473 of ARA 2023 for further detail |
139,600
colleagues
>50
countries
£436bn
RWAs
Strategy Update
May 2014
1
9.3%
CET1 ratio
Non-priority business exits
• Africa
• Commodities
• Europe retail banking
• Reduced non-CIB footprint in Asia
• US and Asia Wealth
• Considering options for merchant acquiring Payments business
• Sale of German consumer finance business
• Disposal of Italian retail mortgages book
Refocused business priorities
• Invested in building at scale CIB franchise
c.£16bn litigation and conduct addressed
2
• Customer redress
• Market manipulation
• Governance
13.8%
CET1 ratio
Investor Update
February 2024
92,400
colleagues
38
countries
£343bn
RWAs
29
February 2024
Barclays Investor Update
Improved RoTE and increased distributions with room to grow
1
The FY23 RoTE of 10.6% excludes £927m of structural cost actions taken in Q423. Statutory RoTE of 9.0%. Impact of 1.6% relates to structural cost actions |
2
Market capitalisation as at 13 February 2024 |
13.1%
10.4%
9.0%
1.6%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Strong Return on Tangible Equity in each of the last three years
Increased shareholder distributions: distributed c.35% of market cap since 2021
2
1.0
1.2
1.2
1.5
1.0
1.8
1.1 1.1
0.5
0.5
1.1
0.5
0.9
2.5
2.2
3.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Dividend
Share buyback
(£bn)
10.6%
1
SCA
Impact
1
30
February 2024
Barclays Investor Update
We know we need to do even better
“Consistently excellent”
Improve customer experience
Reduce organisational complexity
Continue to upgrade legacy technology
Further uplift operational controls
Operationally
Drive towards higher returns within our divisions
Demonstrate stronger cost control
Invest RWAs in higher returning consumer and
corporate businesses
Broadly stable Investment Bank RWAs including
regulatory headwinds
Predictable and higher shareholder distributions
Enhanced financial reporting
Financially
31
February 2024
Barclays Investor Update
Which will deliver
1
FY23 RoTE of 9.0% includes Q423 structural cost actions of £927m. RoTE of 10.6% excluding these actions |
2
Market capitalisation as at 13 February 2024 |
3
63% based on prior Corporate and Investment Bank segmentation. Re-segmented Barclays Investment Bank 58% |
Targets
Total Payout
Statutory
RoTE
Investment
Bank RWAs
(% of Group)
2023
9.0%
1
£7.7bn
2021-2023
63%
3
2026
>12%
At least £10bn
2024-2026
c.50% of market cap
2
c.50%
2024
>10%
This multiyear plan is subject to supervisory and Board
approval, anticipated financial performance and our
published CET1 ratio target range of 13-14%
32
Barclays Investor Update
February 2024
Our journey to achieve
More balancedBetterSimpler
33
February 2024
Barclays Investor Update
What Simpler means
Simpler business
Simpler operations
Simpler organisation
34
February 2024
Barclays Investor Update
Simpler business: five focused divisions
Barclays UK Consumer, Cards and Payments Corporate and Investment Bank
Barclays InternationalRing-fenced bank
Barclays UK (BUK) Private Bank & Wealth
Management (PBWM)
UK Corporate Bank
(UKC)
Investment Bank
(IB)
US Consumer Bank
(USCB)
35
February 2024
Barclays Investor Update
Simpler organisation and operations: continuing the journey
1
Barclays Execution services, the Group service company |
2
Full time employees |
Starting point We will continue
BX
1
c.70k FTEs
2
Right
-sizing headcount; gross
c.5k FTE exits in 2023
Private Bank & Wealth
Management unification
Reposition c.30%
of BX employees
into businesses
Simplified decision making
Improved
delivery oversight
Improved speed of execution
Enhanced front to back
accountability
Increased use of low
-cost,
industry standard technology
Reduced complexity and better
operational risk management
Increase to 85
-90% workload
on cloud
Decommission a further 450
-
500 legacy applications
Simpler
organisation
Simpler
operations
75% workload on cloud
c.400 legacy applications
decommissioned since 2021
Example actions Outcome
Reduce organisational
complexity
Continue to upgrade legacy
technology
Further uplift operational
controls
36
February 2024
Barclays Investor Update
What Better means?
Better returns
Better quality income
Better investments
Better customer
experience and outcomes
37
February 2024
Barclays Investor Update
Better returns: our divisions contribute through growth and performance
1
Includes Head Office |
2
FY22 RoTE of 10.4% includes the impact of the Over-issuance of Securities (FY22 financial impacts: income gain of £292m, litigation & conduct charges of £966m). RoTE of 11.6% excluding these impacts |
3
FY23 RoTE of 9.0% includes Q423
structural cost actions of £927m. RoTE of 10.6% excluding these actions |
Barclays UK
Barclays
UK Corporate Bank
Barclays
Private Bank & Wealth Management
Barclays
Investment Bank
Barclays
US Consumer Bank
Barclays Group
1
18%
19%
19%
High teens %
2021 2022 2023 20262024
14%
19%
20%
High teens %
23%
36%
33%
>25%
14%
9%
7%
In line with Group
17%
13%
4%
In line with Group
13%
10%
2
9%
3
>10%
>12%
Statutory RoTE
38
February 2024
Barclays Investor Update
2023 2026
Better investments: facilitating growth in all divisions
1
Investments related to driving income growth and protection, and cost efficiency. Excludes investment related to regulation and control and structural cost actions |
Investments in businesses outside of the Investment Bank
1
£bn cost spend (P&L)
0.5
0.3
Investing more on
driving future returns
• Improving customer journeys
• Modernising platforms
• Reducing legacy technology
Barclays US Consumer Bank
Barclays Private Bank and Wealth Management
Barclays UK Corporate
Barclays UK
Barclays Investment Bank
c.70%
c.60%
Expected payback:
• Income growth and protection c.1 year
• Cost efficiency c.2 years
c.2x
39
February 2024
Barclays Investor Update
Better quality income: diverse sources of income to support growth
1
2022 excludes the impact of the Over-issuance of Securities (Income of £292m) |
2
Global Markets Financing includes income related to client financing in both FICC and Equities. In FICC this includes fixed income securities repurchase agreements, structured credit,
warehouse and asset backed lending. In Equities this includes prime brokerage margin lending, securities lending, quantitative prime services, futures clearing and settlement, synthetic financing, and equity structured financing. All other items are considered intermediation
|
3
Retail & Corporate consists of income from Barclays UK, Barclays UK Corporate Bank, Barclays Private Bank and Wealth Management, the International Corporate Bank, Barclays US Consumer Bank and Head Office |
11.9
13.9
16.2
2.2
2.9
2.9
4.3
5.7
1
4.3
3.7
2.2
2.0
2021 2022 2023 Retail &
Corporate
Financing Intermediation Investment
Banking Fees
2026
Income (£bn)
24.7
1
21.9
Retail &
Corporate
3
More stable income
streams expected to
contribute >70% of
Group income by 2026
Financing
2
Intermediation
Investment
banking fees
We have grown more
stable income streams
+c.35% since 2021
25.4
c.30
+c.15%
+19%
+14%
Global Markets
40
February 2024
Barclays Investor Update
Better customer experience and outcomes: where we need to do more
1
Based on a Barclays Brand 12-month rolling net promoter score as at December 2023 (Source: IPSOS FRS Survey). Benchmarked vs. 12 banks which are Barclays, Co-op, First Direct, Halifax, Lloyds, TSB, HSBC, Metro Bank, Monzo, NatWest, Nationwide, RBS, Santander |
2
Savanta |
3
Overall score across Private Bank UK and Private Bank International clients from Barclays Promising Outcomes client survey 2023 |
4
USCB digital tNPS. A newly tracked metric measuring USCB customer experience at the digital journey level |
5
Dealogic for the
period covering 2019 to 2023 |
•
More resilient platforms
•
Tailored servicing model
•
Enhanced offerings
•
More regional and sector coverage
•
Expanded offerings and drive proposition
adoption
•
Breadth of products and services with
seamless referrals across the Group
•
Digital customer and partner platforms
•
Wide rollout of AI digital assistants
•
Deliver multiple services in coordinated fashion
•
Invest in talent and continue to grow a winning
culture
•
Barclays UK Brand NPS ranked 8th
1
•
56% of UK Corporate clients rate overall
quality of service as excellent or very good
2
•
43% of Private Bank clients rate Barclays as
best for client experience
3
•
US Consumer Bank: digital NPS c.60%
4
•
Investment Banking Fees market share
reduction of 1% from 2019 to 2023
5
Barclays tomorrowBarclays today
Best-in-class
customer
and client
experience
41
February 2024
Barclays Investor Update
What More balanced means?
More balanced allocation of RWAs
More balanced geographical footprint
42
February 2024
Barclays Investor Update
Including
+c.£16bn regulation
3
Capital allocation to our highest returning divisions
1
Includes Head Office FY23 RWA: £19bn |
2
Relates to RWA effect on day 1 |
3
US IRB H224 expected impact | Note: Charts may not sum due to rounding |
Barclays UK
19% £74bn
Barclays
UK Corporate Bank
18% £21bn
Barclays
Private Bank & Wealth Management
31% £7bn
Barclays
US Consumer Bank
11% £25bn
Barclays
Investment Bank
10% £197bn
Barclays Group
1
(Incl. Head Office)
11% £343bn
Statutory RoTE
FY21-FY23 average
RWA% of Group
2023
+c.£30bn
21%
6%
2%
58%
7%
RWA 2023
Allocation of RWAs
across the three
highest returning
divisions (includes
c.£8bn Tesco
Bank
2
)
Growth
2026 vs. 2023
Drivers
+c.£20bn
Whilst absorbing
Basel 3.1
Broadly stable
+c.£50bn
43
February 2024
Barclays Investor Update
Barclays Investment Bank c.50% of Group RWAs by 2026
58% c.50%
Investment Bank
2023
Investment Bank
2026
63%
Corporate & Investment Bank
2023
% of Group RWA
Investment Bank competitive and at scale
Re-segmented Group
Includes Global Markets and Investment Banking, which incorporates Investment Banking Fees and
International Corporate Bank
44
February 2024
Barclays Investor Update
Now is the right time to grow in our UK home market
Deep rooted presence and brand
1.
UK economy remains resilient to geopolitical events
2.
Strong and trusted regulatory environment
3.
London is our global financial centre
4.
Aim to become the UK-centred leader in global finance
45
Barclays Investor Update
February 2024
More balancedBetterSimpler
Outcome
46
February 2024
Barclays Investor Update
9.0%
>10%
>12%
1.6%
>1.5%
c.(0.5%)
c.(0.0%)
<(1.5%)
<(0.5%)
c.(0.5%)
c.(2.0%)
2023 Q423 SCA Income Costs Impairment Book value
growth &
Other
2024 Income Costs Impairment Book value
growth &
Other
2026
Retail &
Corporate
2
Investment
Bank
Earnings impacts
3
Tangible equity
impacts
Includes:
Cash flow hedge reserve
amortisation c.(0.5)%
Incremental equity for RWA
growth c.<(0.5)%
Includes:
Cash flow hedge reserve
amortisation c.>(0.5)%
Incremental equity for RWA
growth c.>(1.0)%
>5%
Statutory RoTE: driving to above 12% by 2026
1
Excludes Q423 structural cost actions of £927m |
2
Retail & Corporate consists of income from Barclays UK, Barclays UK Corporate Bank, Barclays Private Bank and Wealth Management, the International Corporate Bank, Barclays US Consumer Bank and Head Office |
3
The bridging items from 2023-24 exclude the impact of Tesco Bank, with acquisition expected in H224. Statutory RoTE target of >10% includes the impact of Tesco bank|
FY23
adjusted
RoTE: 10.6%
1
47
February 2024
Barclays Investor Update
Income: deploying c.£30bn of RWA to our home UK market
1
6% of total book is HLTV vs. 12-14% peer average. Peer average based on an average of estimated proportion of HLTV at HSBC, Lloyds and NatWest (definition of HLTV mortgages varies between banks) |
2
Kensington Mortgage Company |
3
Credit card market share
based on total balances (Source: Bank of England) |
4
Market share based on Barclays Consumer Loans, excluding Barclays Partner Finance, as a % of total consumer credit excluding credit cards and student loans (Source: Bank of England) |
0.5
11.0
3.3
7.6
1.8
1.2
25.4
c.30
2023 2026
Income (£bn)
Grow
share
PBWM
UKC
Barclays UK
USCB
IB
Head Office
High LTV mortgages
6%
total book
1
Grow presence
Leverage Kensington
2
Broader propositions
Better decisioning
Business Banking
UK Corporate
26%
LDR
31%
LDR
Competitive pricing
Automated journeys
Regain
share
Tesco Bank acquisition
Simplified journeys
Barclaycard UK
Barclays UK
Consumer Loans
15%
pre-Tesco
market share
3
Tesco Bank acquisition
Open market strategy
2%
pre-Tesco
market share
4
Lending growth underpinned by c.£30bn RWA deployment
Product 2023
Action
48
February 2024
Barclays Investor Update
1.8
1.7
1.4
2.2
3.6
3.8
2.9
1.9
0.7%
0.0%
1.1%
4.1%
3.4%
1.1%
0.9%
0.7%
0.9%
1.5%
00.0
01.0
02.0
03.0
04.0
05.0
06.0
07.0
08.0
09.0
10.0
2019 2020 2021 2022 2023 2024 2025 2026
Income: predictable uplift from the structural hedge
1
Gross hedge income divided by period end hedge notional |
2
UK Pound Sterling SONIA OIS Zero 5 Year Point (Refinitiv: GBPOIS5YZ=R) |
3
Refers to the impact to NII of hedges that have already been executed |
4
We expect to roll around three quarters |
Gross Structural
Hedge income
£bn
Income locked
in by 2023
3
5-year swap rate
2
Average hedge yield
1
Average maturing yield of c.1.5% on c.£170bn maturing
4
Gross contribution
resilient to marginal
changes in rates
and notionals
Two-thirds of gross
hedge income
within Barclays UK
49
February 2024
Barclays Investor Update
Income: realistic assumptions underpin Investment Bank growth
1
Total industry wallet represents Markets & Banking revenues. 2019-2022 Markets industry revenue based on Coalition Greenwich Global Competitor Analytics, for the following peer group: BofA Securities, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank,
Goldman Sachs, J.P. Morgan, Morgan Stanley and UBS. Analysis is based on Barclays’ internal business structure and internal revenues. 2023 based on Barclays internal estimates. Dealogic Banking wallet as at December 31st 2023 for the period covering 2019 to 2023 |
2
Excluding the impact of Over-Issuance of securities in 2022 |
3
Global Markets share based on Barclays’ calculations using Peer reported financials, including restatements. Top 10 Peers includes Barclays and; US Peers: Bank of America, Citi, Goldman Sachs, JP. Morgan,
Morgan Stanley. European Peers: BNP Paribas, Credit Suisse, Deutsche Bank, UBS |
4
Dealogic Banking Fee share as at December 31st 2023 for the period covering 2019 to 2023 |
5.3
7.6
6.4
8.6
7.2
2.5
2.7
3.7
2.2
2.0
172
218
252
204
178
c.200
-400.0
-300.0
-200.0
-100.0
0.0
100.0
200.0
300.0
00.0
02.0
04.0
06.0
08.0
10.0
12.0
14.0
16.0
18.0
2019 2020 2021 2022 2023 2024 2025 2026
Markets
Income £bn
2
Investment
Banking
Fees £bn
Combined
Wallet $bn
1
Global Markets
Share %
2,3
6.1 6.7 6.3 7.0 6.5 Recovery in 2024, with stability to 2026
Banking Fee
Share %
4
4.1 3.6 3.6 3.1 3.1 Rebuilding to 2019 level
• Markets broadly flat
• Banking reverting
to 10-year average
50
February 2024
Barclays Investor Update
Costs: c.£2bn cost efficiency by 2026
1
Excludes Q423 structural cost actions of £927m | Note: Charts may not sum due to rounding | Note: Group plan based on an average USD/GBP FX rate of 1.27
16.0
c.17.0
0.9
1.2
c.0.2
1.7
c.(2.0)
c.(0.1)
2023 Efficiency
savings
Inflation Investments Regulation &
Control
Business
growth
2026
• Efficiency savings more than offsetting
inflation
o c.£0.5bn in 2024 from £1.0bn of
structural cost actions in 2023
o c.£1.5bn driven by prior and on-going
efficiency investments and business-
as-usual structural cost actions of
c.£200-300m per year
• Business growth costs increase in line
with expected income generation
Q423
SCAs
CIR
63%
1
CIR
High 50s%
£1.0bn in 2024
£1.0bn 2025-2026
£bn
51
February 2024
Barclays Investor Update
Costs: lower regulatory change spend facilitates investments in growth
Note: Charts may not sum due to rounding |
1.0
c.1.1
c.1.0
c.0.9
0.3
c.0.4
c.0.5
c.0.5
1.0
c.0.2 c.0.2
c.0.2
2023 2024 2025 2026
Total investment (including structural cost actions)
£bn cost spend (P&L)
2.3
c.1.8
Regulation and control
Investments (income growth and protection
and cost efficiency)
Structural cost actions
c.1.7
c.1.6
Structural cost actions to normalise going forwards
Investments &
Regulation
and control
spend broadly
flat from 2023
to 2026 with a
change in mix
52
February 2024
Barclays Investor Update
Costs: better CIRs and opportunity vs. best in class
1
Cost savings are indicative and not formal business targets |
2
Peer benchmarking based on top quartile of comparable businesses averaged as at FY22 compared to Barclays FY26 guidance |
3
Includes planned savings from strategic review of business portfolio |
4
Excludes
Q4 structural cost actions of £927m (Barclays UK: £168m, UK Corporate Bank: £27m, Private Bank & Wealth Management: £29m, Investment Bank: £169m, US Consumer Bank: £19m) |
2024-26
Barclays UK
c.£0.7bn
Barclays
UK Corporate Bank
c.£0.1bn
Barclays
Private Bank & Wealth Management
c.£0.1bn
Barclays
Investment Bank
c.£0.7bn
Barclays
US Consumer Bank
c.£0.1bn
Head Office
c.£0.3bn
3
Group
c.£2.0bn
60%
58%
50%
Mid 40s%
59%
69% 69%
High 50s%
69%
54%
64%
High 60s%
59%
49%
50%
High 40s%
68%
60%
56%
c.50%
2021 2022 2023
4
2026
c.£2bn cost efficiency savings by business
1
Cost: income ratio
Further efficiency savings expected post 2026
Top quartile peer
benchmark as at FY22
2
67% 67%
63%
High 50s%
53
February 2024
Barclays Investor Update
0bps
600bps
Impairment: lending growth to maintain loan loss rate of 50-60bps
1
Protection against funded on-balance sheet exposure in the Corporate lending portfolio in Barclays Investment Bank and Barclays UK Corporate Bank. In terms of credit protection, individual asset level hedges may vary, but cover a significant and diverse portion of our
lending portfolio, with higher average levels of protection for selected vulnerable sectors, lower quality credits and unsecured exposure |
2
Includes Consumer Loans excluding Barclays Partner Finance | Note: In 2023, Corporate loans primarily included in Barclays UK,
Barclays Investment Bank and Barclays UK Corporate Bank. Retail unsecured primarily included in Barclays UK, Barclays Private Bank and Wealth Management and Barclays US Consumer Bank. Retail Mortgages primarily included in Barclays UK and Barclays Private Bank and
Wealth Management |
£155bn
£172bn
£60bn
£48bn
£113bn
£128bn
£328bn
£348bn
2019 2023 2026
Retail unsecured
Retail mortgages
Customer loans
and advances
Corporate loans
50-60bps loan loss rate through the cycle
Significant risk transfers provide loss protection
36% protection against c.£50bn of exposure
1
LLR
Maintaining risk discipline as we grow unsecured lending
US Consumer Bank
Well established affordability assessments in place
54% average balance weighted LTV
UK Cards and Consumer Loans
2
2026
c.400bps
20232019
0bps
600bps
LLR
2023 20192026
54
February 2024
Barclays Investor Update
Plan returns based on realistic scenarios
1
FY23 RoTE of 9.0% includes Q423 structural cost actions of £927m. RoTE of 10.6% excluding these actions |
2
Source: Dealogic wallet as at 31 December 2023 | Note: Group plan based on an average USD/GBP FX rate of 1.27 | Note: Markets 2023 wallet and forward-
looking metrics based on internal Barclays estimates and are factored into the medium-term plan |
2024 20262023
9.0%
1
>10%
>12%
Statutory RoTE
4.3%
4.8%
4.7%
4.8%
3.7%
4.3% 4.3% 4.3%
2023 2024 2025 2026
7.4%
3.0%
1.9%
2.0%
4.1%
2.7%
2.1% 2.1%
2023 2024 2025 2026
Unemployment
UK
US
Inflation
UK
US
5.25%
4.00%
3.25%
3.25%
3.36%
3.58%
3.49%
3.49%
2023 2024 2025 2026
UK rates
Bank
rate
5-year
swap
rate
111 111 111
115
67
70
80
84
2023 2024 2025 2026
Markets & Banking wallet ($bn)
Markets
Banking
2
55
February 2024
Barclays Investor Update
Capital distributions: prioritising returns to shareholders
1
This multiyear plan is subject to supervisory and Board approval, anticipated financial performance and our published CET1 ratio target range of 13-14% |
Increase returns to our
shareholders
Capital distributions through
dividends and share
buybacks, with a continued
preference for buybacks
Grow our business for the
benefit of all our stakeholders
Investments meet long term
return hurdle rates
2. Shareholder distributions 3. Investment1. Regulatory capital
Operate within 13-14%
target CET1 range
Plan to return at least
£10bn 2024-2026
1
Group RoTE >12%
by 2026
Protect our customers,
clients and investors
Sufficient headroom to
absorb regulatory headwinds
56
February 2024
Barclays Investor Update
Capital distributions: greater free capital available to shareholders
1
Includes attributable profit for the year and other capital supply movements |
RWA investment
• Focused on higher
returning businesses
Reg change
• Basel 3.1
• IRB
Capital distributions
capacity
Capital generation from 2024-26
Statutory RoTE Capital generation
1
2023
9.0%
>125bps
(bps of CET1)
2026
>12%
>200bps
(bps of CET1)
Free capital RWA investment Regulatory change
RoTE targets will drive higher
capital generation
Shareholders to receive greater
proportion of capital generated
57
February 2024
Barclays Investor Update
Capital distributions: plan to return at least £10bn
1
1
This multiyear plan is subject to supervisory and Board approval, anticipated financial performance and our published CET1 ratio target range of 13-14% |
2
Market capitalisation as at 13 February 2024 |
Plan to keep total dividend stable at 2023 level in absolute terms, with progressive dividend growth per share driven
through share count reduction as a result of increased share buybacks
c.15% of market cap
2
£1.8bn buyback
£1.2bn dividend
£3.0bn
2023
Broadly in line
with 2023
2024
Progressive
increase
2025-2026
Plan to return
at least
£10bn
2024-26
1
c.50% of market cap
2
2024-2026
Capital distributions through dividends and share buybacks, with a continued preference for buybacks
58
February 2024
Barclays Investor Update
Our financial goals for the next three years
1
This multiyear plan is subject to supervisory and Board approval, anticipated financial performance and our published CET1 ratio target range of 13-14% |
2
63% based on prior Corporate and Investment Bank segmentation. Re-segmented Barclays Investment Bank 58% |
3
Excludes Q423 structural cost actions of £927m |
Targets 2023 2024 2026
Statutory RoTE 9.0% >10% >12%
Total payout
£7.7bn
2021-2023
>
At least £10bn
1
2024-2026
Investment Bank RWA
(% of Group)
63%
2
> c.50%
Continue to target a 13-14% CET1 ratio range
Supporting targets 2023 2024 2026
Income £25.4bn > c.£30bn
Cost: income 63%
3
c.63% High 50s%
Loan Loss Rate (LLR) 46bps
50-60bps
Through the cycle
50-60bps
Through the cycle
59
February 2024
Barclays Investor Update
Why Barclays?
1
This multiyear plan is subject to supervisory and Board approval, anticipated financial performance and our published CET1 ratio target range of 13-14% |
High returning UK retail and corporate franchises
1
2
Top-tier global Investment Bank with focus and scale, operating in
core UK and US markets
Multiple levers to allocate capital in a disciplined way to drive growth
within higher returning divisions and greater RWA productivity in
the Investment Bank
3
.
4
Reset level of returns, delivering double-digit RoTE, targeting
>12% by 2026
Growing capital return to shareholders; at least £10bn
1
2024-2026
5
Disclaimer
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 sell or solicitation of any offer to buy any
securities or financial instruments,or any advice or recommendation withrespect to such securities or other financial instruments.
Information relating to:
• regulatory c
apital, leverage, liquidity and resolution is based on Barclays' interpretation of applicable rules and regulations as currently in force and implemented in the UK, including, but not limited to, CRD IV (as amended by CRD V applicable as at the reporting date)
and CRR (as amended by CRR II applicable as at the reporting date) texts and any applicable delegated acts, implementing acts or technical standards and as such rules and regulations form part of domestic law by virtue of the European Union (Withdrawal) Act 2018,
as amended. All such regulatory requirementsare subject to changeand disclosures made by the Group will be subject to any resulting changesas at the applicablereporting date;
• MREL is ba
sed on Barclays' understanding of the Bank of England's policy statement on "The Bank of England's approach to setting a minimum requirement for own funds and eligible liabilities (MREL)" published in December 2021, updating the Bank of England's June
2018 policy statement, and its MREL requirements communicated to Barclays by the Bank of England. Binding future MREL requirements remain subject to change including at the conclusion of the transitional period, as determined by the Bank of England, taking
into `flight path, end-state capital evolution andexpectationsand MREL build are based on certain assumptions applicable at the date of publication only which cannot be assured and are subject to change.
Non-IFRS performance measures
Barclays’ management believes that the non-IFRS performance measures included in this presentation provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’
performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect
of the way in which operating targets are defined and performance is monitored by Barclays’ management. However, any non-IFRS performance measures in this presentation are not a substitute for IFRS measures and readers should consider the IFRS measures as
well. Refer to the appendix of the Barclays PLC Results Announcement for financial year ended 31 December 2023, which is available at Barclays.com, for further information and calculations of non-IFRS performance measures included throughout this presentation,
and the most directly comparable IFRS measures
.
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 the Group. Barclays cautions readers
that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be
identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or
other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the Group (including during management presentations) in connection with this document. Examples of forward-
looking statements include, among others, statements or guidance regarding or relating to the Group’s future financial position, business strategy, income levels, costs, assets and liabilities, impairment charges, provisions, capital, leverage and other regulatory ratios,
capital distributions (including p
olicy on dividends and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG)
commitments and targets), plans and objectives for future operations and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances.
Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation, regulations, governmental and regulatory policies, expectations and
actions, voluntary codes of practices and the interpretation thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of
current and future legal proceedings and regulatory investigations; the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; environmental, social and geopolitical risks and incidents,
pandemics and similar events beyond the Group’s control; the impact of competition in the banking and financial services industry; c
apital, liquidity, leverage and other regulatory rules and requirements applicable to past, current and future periods; UK, US, Eurozone and
global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; reforms to benchmark interest rates and indices; higher or lower asset valuations;
changes in credit ratings of any entity within the Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the conflicts in Ukraine and the Middle East on European and global
macroeconomic conditions, political stability and financial markets; political elections; developments in the UK’s relationship with the European Union (EU); the risk of cyberattacks, information or security breaches or technology failures or other operational disruptions
and any subsequent impacts on the Group’s reputation, business or operations; the Group’s ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Group’s control. As a result, the
Group’s actual financial position, results, financial and non-financial metrics or performance measures or its ability to m
eet commitments and targets may differ materially from the statements or guidance set forth in the Group’s forward-looking statements. In setting
its targets and outlook for the period 2024-2026, Barclays has made certain assumptions about the macro-economic environment, including, without limitation, inflation, interest and unemployment rates, the different markets and competitive conditions in which
Barclays operates, and its ability to grow certain businesses and achieve costs savings and other structural actions. Additional risks and factors which may impact Barclays Bank Group’s future financial condition and performance are identified in Barclays PLC’s filings with
the US Securities and ExchangeCommission (“SEC”) (including, without limitation, Barclays PLC’s Annual Report on Form 20-F for the financial year ended31 December 2023), which are available on the SEC’s website at
www.sec.gov.
Subject to Barclays Bank PLC's obligations under the applicable laws and regulations of any relevant jurisdiction, (including, without limitation, the UK and the US), in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any
forward-lookingstatements, whether as a result of new information,future events or otherwise.
