Barclays Plc · LSE:BARC
Barclays — Investor Day (February 2024)
16 slides from Barclays's investor day presentation, Feb 20, 2024
Slide 1: US Consumer Bank Investor Update
US Consumer Bank Investor Update: 20th February 2024
Slide 2: Barclays US Consumer Bank today
Barclays US Consumer Bank today Barclays Investor Update February 2024 90 US Cards Market3 20+ years of expertise in US cards Partner Non-retail #9 US card issuer1 $430bn $180bn A leading issuer in US partner cards market1,3 $430bn $1.25trn partner 20 client partners Total Non-partner cards Retail c
Slide 3: Our ability to succeed in the attractive US partner market
Our ability to succeed in the attractive US partner market Barclays Investor Update February 2024 91 3rd 5% >80%3 >200m4 largest card balances CAGR over of US cardholders use customers we can access market globally1 past 10 years rewards cards through our partners Specialised capabilities required t
Slide 4: With 20 leading US brands as our partners
With 20 leading US brands as our partners Barclays Investor Update February 2024 92 Launching March 2024:
Slide 5: Financial performance 2021-23
Financial performance 2021-23 Barclays Investor Update February 2024 93 Key Metrics1 2021 2022 2023 17% RoTE 13% 4% End Net Receivables ($bn) 22 29 32 Income (£bn) 1.8 2.6 3.3 Net interest margin (%) 7.6% 9.7% 10.9% Cost: Income ratio (%) 60% 58% 51% Loan Loss Rate (bps)2 116 237 514 RWA (£bn) 17.1
Slide 6: Focus areas: RoTE, Impairment, Capital headwind
Focus areas Barclays Investor Update February 2024 94 • Long track record of growth and returns RoTE • Target 2026 RoTE (including IRB) is in line with Group target, mid-teens thereafter • Long track record of prudent risk management Impairment • Reserve rebuild in 2023 from COVID lows • Trend towar
Slide 7: Path to delivering RoTE in line with Group target by 2026
Path to delivering RoTE in line with Group target by 2026 Barclays Investor Update February 2024 95 Improving RoTE whilst absorbing regulatory headwinds In line with Group target 4.1% 2023 Impairment Scale and NIM expansion Balance sheet Late fees 1 IRB 2026 actual stabilisation operational optimisa
Slide 8: Long track record of growth and returns
Long track record of growth and returns Barclays Investor Update February 2024 96 c.8.5% receivables CAGR1, and c.400bps average LLR1 40 22% 25 Covid-19: 18% 18% 20 17% impacted by 17% 16% 16% impairment 13% 30 15% reserve build 12% 15 9% 10 20 4% 5% 28 27 27 29 26 32 21 23 21 22 0% 10 14 16 12 -5 -
Slide 9: Delinquency rates consistently well-positioned among leading US card issuers
Delinquency rates consistently well-positioned among leading US card issuers Barclays Investor Update February 2024 97 USCB 30 day delinquency rates vs peers 6.0% 4.0% 2.0% 0.0% 2013 2015 2017 2019 2021 2023 USCB Top US Issuers 1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LLR (bps)2 268
Slide 10: Higher delinquencies in US cards driving impairment reserve build
Higher delinquencies in US cards driving impairment reserve build Barclays Investor Update February 2024 98 2.9% 2.7% 30 day delinquencies 2.2% 2.3% 2.4% 2.0% 1.6% 1.4% Forecast LLR to trend Loan loss rate (bps)1 towards long term 259 179 257 337 515 411 582 636 514 average of c.400bps 1,438 809 Tot
Slide 11: Journey to Simpler, Better and More balanced
Journey to Simpler, Better and More balanced Barclays Investor Update February 2024 99 Simpler Better More balanced Scale and diversify by growing existing partnerships Investing in digitisation and winning new partners to deliver operational Improve NIM by optimising pricing and credit mix, efficie
Slide 12: Simpler: path to improving operational efficiency
Simpler: path to improving operational efficiency Barclays Investor Update February 2024 100 Leverage from scale and Combined with margin uplifts, Investing in digitisation investments driving down unit costs drives down CIR and automation Cost per average active account1 Cost-income ratio Better di
Slide 13: Better and More balanced portfolio to drive increased margins
Better and More balanced portfolio to drive increased margins Barclays Investor Update February 2024 101 Net Interest Margin1 Grow balances • Grow balances from $32bn to c.$40bn by 2026 and diversify >12% towards retail • Increase retail as % of portfolio from c.15% to c.20% by 2026 • Rebalance FICO
Slide 14: More balanced: plan to absorb and reduce IRB impacts
More balanced: plan to absorb and reduce IRB impacts Barclays Investor Update February 2024 102 Impact Our response RWA Density (pre-mitigating actions)1 +60% • Management of credit lines and business models based on new IRB requirements c.160% c.140% 100% 2023 2023 IRB 2023 Basel 3.1 • Execute sele
Slide 15: Today's financials and 2026 targets
Today’s financials and 2026 targets Barclays Investor Update February 2024 103 Key Metrics1 2021 2022 2023 2026 Targets 17% RoTE 13% 4% In line with Group End Net Receivables ($bn) 22 29 32 c.$40bn (c.£31bn)2 Net interest margin 7.6% 9.7% 10.9% >12% Cost: Income ratio (%) 60% 58% 51% Mid-40s % Loan
Slide 16: Disclaimer
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 bu