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Investment Fact Sheet | Investing in Barclays | Barclays

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Barclays is a transatlantic consumer, corporate and investment bank with global reach
Investing in Barclays

About Barclays

Barclays is a transatlantic consumer, corporate and investment bank with global reach

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Barclays Overview

Barclays is a transatlantic consumer, corporate and investment bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US
With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 120,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide
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Strategy

  • Two clearly defined divisions: Barclays UK and Barclays International provide diversification across customers and clients, products and geographies delivering resilience and balance to the Group
     
  • The foundation will enable Barclays to deliver its strategy of building a simpler, stronger and more profitable bank

  • Barclays has completed its restructuring with the closure of   Non-Core on 1 July 2017, sale down to a target 15% stake in Barclays Africa Group Limited (BAGL), and CET1 ratio at the       end-state target level

Key Group financials - Q2 2017

1,2 PBT and Core RoTE exclude charges for PPI. Group RoTE excludes losses relating to the selldown of BAGL and charges for PPI

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Group Divisional Structure

Barclays overview
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Financial targets

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Results overview - Q2 2017

  • Group RoTE of 7.2% and EPS 5.3p2

  • Core RoTE of 9.7%1 reflected the benefits of diversification. Results were impacted by appreciation of average USD and EUR against GBP, which positively affected income and adversely affected impairment and operating expenses

  • Barclays UK RoTE of 19.1%1. Income growth of 2% (excluding Q216 Visa sale gains of £151m) was driven by a 4% increase in Net Interest Income with improved NIM of 370bps

  • Barclays International RoTE of 12.4%. Income growth of 1% reflected continued growth in US Cards and increased Banking fees, partially offset by a weaker performance in Markets

  • Non-Core RWAs reduced to £23bn, ahead of guidance. Closure of Non-Core on 1st July 2017, with guidance for loss before tax from Non-Core businesses/assets unchanged at c.1bn for FY17

  • Group CET1 ratio increased to 13.1% reflecting strong organic capital generation and the benefit of the sale of BAGL, partially offset by charges for PPI and pension contributions
Strategy Core performance
Three months ended (£m) Jun-17 Jun-16 % change
Income   5,514 6,316 (13%)
Impairment   (500) (462) (8%)
Operating expenses (3,968) (3,477) (15%)
Profit before tax3   1,065 2,359 (55%)

 

Performance measures
Basic earnings per share 2.3p 9.0p
RoTE 3.6% 15.0%
Average allocated tangible equity £44.9bn £40.4bn
Cost:income ratio 72% 55%
Loan loss rate (LLR) 52bps 45bps

 

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2016 Transform financial commitments
H1 2014 Adjusted Return on Equity
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Financial strength

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Credit ratings

As at 28 July 2017
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Footnotes

1 Excluding £700m of charges for PPI
2 Excluding £1,435m loss on sale of 33.7% of BAGL's issued share capital, £206m impairment of Barclays' holding in BAGL, and £700m of charges for PPI
3 Including Other net income 
4 Loan: deposit ratio for Barclays UK, Barclays International and Non-Core, excluding investment banking businesses
5 Average UK leverage exposure based on the last day of each month in the quarter, and excluding qualifying cash at central banks in the calculation of leverage exposure
6 Gross loans and advances at amortised cost

Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England. Registered No. 1026167. Registered Office: 1 Churchill Place, London E14 5HP. Copyright Barclays Bank PLC, 2013 (all rights reserved).

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 with respect to such securities or other financial instruments.

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. These 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. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group’s future financial position, income growth, assets, impairment charges, provisions, notable items, business strategy, structural reform, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the Group Strategy Update, rundown of assets and businesses within Barclays Non-Core, sell down of the Group’s interest in Barclays Africa Group Limited, or the impact of any regulatory deconsolidation estimates of capital expenditures and plans and objectives for future operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards, evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, future levels of notable items, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entities within the Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; the implications of the exercise by the United Kingdom of Article 50 of the Treaty of Lisbon and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group’s control. As a result, the Group’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set forth in the Group’s forward-looking statements. Additional risks and factors which may impact the Group’s future financial condition and performance are identified in our filings with the SEC (including, without limitation, our annual report on form 20-F for the fiscal year ended 31 December 2016), which are available on the SEC’s website at www.sec.gov.

Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise.

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