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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

  • Barclays has a strong Core business generating stable and attractive returns, with excellent prospects for growth 
  • The foundation will enable us to deliver our strategy of building a simpler, stronger and more profitable bank
  • Our 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
  • Our aim is to converge Group returns with strong Core returns by reducing the drag of our Non-Core division, which we intend to close at 30 June 2017

Key Group financials - Q1 2017

+ Excluding the impairment of Barclays' holding in BAGL allocated to acquisition goodwill of £884m.  Group RoTE was 1.8%.

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Group Divisional Structure

Barclays overview
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Financial targets

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Results overview - Q1 2017

  • Q1 2017 results reflected continued good execution of the strategy, evidenced by strong Core performance and reduced Non-Core drag
  • Group PBT more than doubled to £1.7bn (Q116: £793m), while the cost: income ratio improved to 62% (Q116: 76%), approaching our <60% target
  • Group RoTE of 1.8% (Q116: 3.8%) included a 720bps impact from the impairment of Barclays’ holding in BAGL allocated to acquisition goodwill of £884m - excluding this, Group RoTE was 9.0%, converging towards Core
  • Core RoTE was 11.0% (Q116: 9.9%) as PBT increased 20% to £1.9bn, reflecting profit growth in Barclays International, including the benefit from a stronger USD, and solid performance in Barclays UK
  • Core income growth of 12% and an increase of 6% in costs delivered an improved cost: income ratio of 59% (Q116: 62%). Impairment increased to £0.5bn, though delinquency rates remained well controlled
  • Barclays UK - RoTE of 21.6%: Income growth of 2% reflected continued pricing discipline and improved NIM of 3.69%, offsetting asset margin compression. Costs were well controlled, flat at £955m, delivering a cost: income ratio of 52%
  • Barclays International - RoTE of 12.5%: Income growth of 18%, driven by growth in CC&P (+48%) and CIB (+7%), outstripped increased costs of 10%, generating positive cost: income jaws. PBT increased 32% to £1.4bn, reflecting encouraging CIB results, continued momentum in CC&P, and the benefit from the stronger USD vs. GBP
  • Non-Core: strong rundown momentum continued with a £5bn RWA reduction to £27bn and a significantly lower pre-tax loss of £0.2bn compared to 2016. On track for closure at 30 June 2017, with c.£25bn of RWAs, completing our restructuring
Core performance
Three months ended (£m) Mar-17 Mar-16 % change
Income   5,897 5,283 12%
Impairment   (524) (414) (27%)
Operating expenses (3,462) (3,270) (6%)
Profit before tax   1,923 1,608 20%

 

Core performance measures
Basic earnings per share 7.2p 5.8p
RoTE 11.0% 9.9%
Average allocated tangible equity £44.2bn £39.3bn
Cost:income ratio 59% 62%
Loan loss rate (LLR) 53bps 42bps

 

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Divisional financials - Q1 2017

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

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Credit ratings

As at 31 March 2017
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Footnotes

1 Core also includes Head Office
2 Includes other income in CIB of £38m
3 Based on Barclays interpretation of the final CRD IV text and latest EBA technical standards 
4 LCR based on the CRD IV rules as implemented by the European Commission delegated act
5 Average quarterly exposure and corresponding ratio as at 31 December 2016 has been restated to exclude qualifying central banks claims
6 Loans and advances at amortised cost
7 Excluding BAGL 

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 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 strategic cost programme and 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, 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; the implementation of the strategic cost programme; 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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