Barclays PLC Goldman Sachs European Financials Conference June 2015
Tushar Morzaria Barclays Group Finance Director
2014 Strategic Update: Repositioning and simplifying Generating higher and more sustainable returns Dedicated Non-Core unit and a new Personal & Corporate Banking business Reshaping the Investment Bank Allocating capital to…
Five measures that the strategy is on track 1 Increased profits for the Group and double digit Core returns 2 Substantial shrinkage of Non-Core 3 Progress towards capital and leverage targets 4 Implementation of cost…
Since we announced the new strategy last year Quarterly adjusted PBT has increased year over year Quarterly adjusted costs have reduced year over year bn bn 16% 9% 7% 15% 1% 7% 1% 100% 1.7 1.8 5.21 1.5 1.7 1.6 1.4 4.5 4.4…
Core business performing well with positive jaws Three months ended March (m) 2014 2015 % change Financial performance Income 6,277 6,420 2% PBT up 14% at 2.1bn: Impairment (481) (448) 7% PCB profits up 14% Total operating expenses…
Double digit returns in the Core business on a higher equity base, and improved IB returns Core RoE Core RoTE 2016 Target Q1 14 12% 10.7% 10.9% 46.7 13.2% 13.2% 38.5 Q1 15 39.6 32.2 RoE Average allocated RoTE Average allocated…
Reduction of Non-Core on track RWA reduction (bn) Leverage exposure by type (bn) Non-Core quarterly costs3 (m) 41% 38% 110 382 48% 278 2 75 18 236 65 13 18 11 114 180 45 101 219 Europe 441 31 retail 419 Europe 31…
Development of capital and leverage towards targets Fully Loaded CET1 ratio1 150bps Continue to steadily accrete capital, and on course for 2016 11.8% and end-state targets Dividends c.40bps Significant conduct c.80bps CET1 capital…
Group adjusted operating expenses - delivery to date Quarterly progression1 (m) Cost: income ratio 68% 67% 64% 5.3 5.2 7% 4.5 4.4 4.4 4.4 4.4 4.3 4.1 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 2014 progress…
Group and Core cost targets Group cost guidance1 (bn) Core cost target1 (bn) 18.7 Original Guidance = 17.5bn Revised Guidance = 17bn c.16.3 16.9 16.4 Non-Core 15.1…
Path to achieving Core cost target Restructuring and Rightsizing Industrialisation Innovation Removing excess capacity as a result of Automation, simplification and Providing a digital client experience business model, organisational…
Evidence of execution in the first quarter Core business PBT up 14% YoY to 2.1bn, resulted in RoE of 11.6% ex CTA a Non-Core RWAs down 10bn to 65bn, releasing 1.3bn of equity a CET1 ratio increased 30bps to 10.6% and leverage ratio…
Progress on meeting 2016 Transform targets 2016 Target Q1 2015 Capital CRD IV FL CET1 ratio 11.0% 10.6% Group Leverage Leverage ratio 4.0% 3.7% Dividend Payout ratio 40-50% 1p1 Returns Adjusted RoE 12% 11.6%2 Barclays Core…
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