Barclays Plc · LSE:BARC
Barclays — Investor Presentation (2011)
34 slides from Barclays's investor presentation, 2011
Slide 1: Autumn 2011 Investor Presentation
Autumn 2011 Investor Presentation
Slide 2: CEO statement and 2011 execution priorities
“I am pleased with the progress made across Barclays in the first half. We have performed well on our journey to a targeted 13% return on equity by 2013 and have made specific progress against our execution priorities of capital strength, returns on equity, income growth and citizenship. We have del
Slide 3: Index
Index Slides Slides Performance highlights 4 Capital 14-15 Income and profits 5 Returns 16 Adjusted performance measures 6 Income growth 17 International income footprint 7 Citizenship 18 Adjusted PBT by business 8 Retail and Business Banking 19-24 Impairment 9 Corporate and Investment Banking 25-30
Slide 4: Highlights: six months ended 30 June 2011
Highlights: six months ended 30 June 2011 • Adjusted1 profit before tax, excluding own credit and gains on acquisitions and disposals, up 24% to £3.7bn • Impairment charge reduced 41% to £1.8bn • Net operating income up 6% to £13,413m excluding own credit • Operating expenses excluding PPI provision
Slide 5: Income and profits
Income and profits Six months ended 2011 2010 change 30 June £m £m % Income excl. own credit 15,241 15,730 (3) • Income down 8% or down 3% excluding the Own credit gain 89 851 nm impact of own credit Income 15,330 16,581 (8) Impairment charges (1,828) (3,080) (41) • Impairment down 41%, giving a loa
Slide 6: Adjusted performance measures
Adjusted1 performance measures Six months ended 30 June 2011 2010 Return on equity 9.1% 6.9% • Adjusted return on equity of 9.1% (2010: 6.9%) Return on tangible equity 10.9% 8.4% • Adjusted return on tangible equity of 10.9% (2010: 8.4%) Return on risk weighted assets 1.4% 1.1% • Adjusted return on
Slide 7: International income footprint
International income footprint (£m) H1 11 H1 10 4% 5% 16% 14% 41% 39% 15,330 16,581 24% 25% 15% 17% 7 Autumn 2011 Investor Presentation
Slide 8: Adjusted profit before tax by business
Adjusted1 profit before tax by business (£m) H1 11 H1 10 139 126 (4%) (4%) 1,086 1,446 (32%) (37%) 3,6782 2,9632 2,327 2,172 (59%) (64%) 1 Figures are adjusted to eliminate the PPI provision, movements in own credit and gains/losses on acquisitions and disposals 2 Includes adjusted losses before tax
Slide 9: Impairment
Impairment Impairment (£m) RBB CIB WIM 3,085 27 (41%) 1,258 1,829 (60%) 19 503 1,800 (27%) 1,307 H1 10 H1 11 9 Autumn 2011 Investor Presentation
Slide 10: Operating expenses
Operating expenses1 Operating expenses (£m) HOF 9,720 1% 9,829 WIM RBB 390 198 CIB 638 746 3,650 9% 3,973 5,042 (3%) 4,912 H1 H1 10 H1 11 1 Excluding provision for PPI redress 10 Autumn 2011 Investor Presentation
Slide 11: Operating expenses bridge
Operating expenses Operating expenses (£m) 10,829 PPI 1,000 Goodwill Net Acquisition Net Write-off Performance Pension & Investment Regulatory & 47 (193) Credit 125 Infrastructure 296 (177) Other Net (112) 9,720 9,706 Restructuring 123 H110 H111 11 Autumn 2011 Investor Presentation
Slide 12: Exposures to Spain, Italy, Portugal, Ireland and Greece
Exposures to Spain, Italy, Portugal, Ireland and Greece At 30 June £bn Retail - Mortgages 35.9 - Other 8.1 Corporate 13.8 Sovereign 11.6 Financial institutions 6.7 12 Autumn 2011 Investor Presentation
Slide 13: Funding and liquidity
Funding and liquidity At 30 Jun 11 At 31 Dec 10 Group liquidity pool £145bn £154bn Liquidity Coverage Ratio 86% 80% Net Stable Funding Ratio 96% 94% Half year ended 2011 2010 Term issuance £19bn £21bn 13 Autumn 2011 Investor Presentation
Slide 14: Capital strength
Capital strength Period ended 30 Jun 11 31 Dec 10 Adjusted gross leverage 20x 20x Risk weighted assets £395bn £398bn Core Tier 1 capital £43.5bn £42.9bn Core Tier 1 ratio 11.0% 10.8% Net asset value per share 423p 417p 14 Autumn 2011 Investor Presentation
Slide 15: Capital management
Capital management Core Tier 1 ratio bridge 11.0% 10.8% FY 10 H1 11 15 Autumn 2011 Investor Presentation
Slide 16: Roadmap to 13% RoE by business
Roadmap to 13% RoE by business Return on Equity (%) 1 FY 2010 HY 2011 2013 Target 17-18% 16-17% 15-16% 14-15% 13-14% 16% 15% 15% 13% 13% 10-11% 12% 10% 10% 9% 9% 9% 8% 4-5% 6% 0% (1%) (7%) (9%) UK RBB Europe RBB Africa RBB Barclaycard Barclays Barclays Wealth Group Capital Corporate 1 FY 2010 and H1
Slide 17: Income growth
Income growth • Three world class businesses – UKRBB, Barclaycard and BarCap • Proven scale, leading technology and deep relationships with customers and clients • Generating good returns in a tough economic environment • Two businesses on the threshold of top tier – Barclays Wealth and Barclays Afr
Slide 18: Citizenship
Citizenship • Job creation: • Barclays employs over 145,000 people globally including more than 55,000 in the UK • During the first half of this year we helped 1,300 young people experience the working world for the first time through paid internships and industrial placements • Stimulating economic
Slide 19: Retail and Business Banking (RBB)
Retail and Business Banking (RBB) 2011 2010 change Six months ended 30 June £m £m % Income 6,697 6,513 3 Impairment charges (1,307) (1,800) (27) Net operating income 5,390 4,713 14 Operating expenses (3,973) (3,650) 9 Provision for PPI redress (1,000) - nm Adjusted1 profit before tax 1,446 1,086 33
Slide 20: RBB – business performance
RBB – business performance Adjusted1 profit before tax by business 2011 2010 change Six months ended 30 June £m £m % UK 704 404 74 Europe (161) (19) nm Africa 379 384 (1) Barclaycard 524 317 65 Adjusted profit before tax 1,446 1,086 33 1 Figures are adjusted for PPI provision and gains/losses on acq
Slide 21: UK RBB
UK RBB 2011 2010 change Six months ended 30 June £m £m % Income 2,263 2,190 3 Impairment charges (275) (477) (42) Net operating income 1,979 1,724 15 Operating expenses (1,675) (1,322) 27 Adjusted1 profit before tax 704 404 74 Adjusted return on equity 15% 8% Adjusted return on tangible equity 29% 1
Slide 22: Europe RBB
Europe RBB 2011 2010 change Six months ended 30 June £m £m % Income 604 602 0 Impairment charges (116) (133) (13) Net operating income 488 469 4 Operating expenses (657) (495) 33 Adjusted1 profit before tax (161) (19) nm Adjusted2 return on equity (9%) 8% Adjusted return on tangible equity (13%) 11%
Slide 23: Africa RBB
Africa RBB 2011 2010 change Six months ended 30 June £m £m % Income 1,980 1,895 4 Impairment charges (268) (330) (19) Net operating income 1,599 1,452 10 Operating expenses (1,223) (1,069) 14 Adjusted1 profit before tax 379 384 (1) Adjusted return on equity 8% 10% Adjusted return on risk weighted as
Slide 24: Barclaycard
Barclaycard 2011 2010 change Six months ended 30 June £m £m % Income 1,972 1,958 1 Impairment charges (648) (890) (27) Net operating income 1,324 1,068 24 Operating expenses (1,418) (764) 86 Adjusted1 profit before tax 524 317 65 Adjusted return on equity 16% 9% Adjusted return on tangible equity 21
Slide 25: Corporate and Investment Banking
Corporate and Investment Banking Adjusted1 profit before tax by business 2011 2010 change Six months ended 30 June £m £m % Barclays Capital 2,310 2,549 (9) Barclays Corporate 17 (377) nm Adjusted profit before tax 2,327 2,172 7 1 Figures are adjusted for movements in own credit and gains/losses on a
Slide 26: Barclays Capital
Barclays Capital H1 2011 H2 2010 H1 2010 change Six months ended £m £m £m % Total income (excluding own credit) 6,263 6,148 7,061 (11) Own credit gain/(charge) 89 (460) 851 (90) Total income 6,352 5,688 7,912 (20) Impairment charges 111 (234) (309) nm Net operating income 6,463 5,454 7,603 (15) Oper
Slide 27: Barclays Capital adjusted performance measures
Barclays Capital adjusted1 performance measures Six months ended 30 June 2011 2010 Cost: net operating income ratio 64% 62% Compensation: income ratio 45% 42% Return on equity 15% 14% Return on risk weighted assets 1.8% 1.5% 1 Adjusted performance measures exclude the impact of own credit gains of £
Slide 28: Barclays Capital quarterly income
Barclays Capital quarterly income (£m) 28 Autumn 2011 Investor Presentation
Slide 29: Barclays Capital momentum
Barclays Capital momentum • For the first time BarCap has been named ‘Best Global Investment Bank’ by Euromoney • Number 1 Bookrunner for Global DCM – Dealogic • Equities franchise has continued to strengthen: Number 2 in the US IPO market – Thomson Number 8 globally – Dealogic • Advisory busine
Slide 30: Barclays Corporate
Barclays Corporate UK Europe RoW 2011 2010 Change Six months ended 30th June £m £m £m £m £m % Income 1,135 200 136 1,471 1,401 5 Impairment (163) (428) (23) (641) (949) (35) Operating expenses (558) (131) (150) (839) (829) 1 Profit/(loss) before tax 413 (359) (101) (47) (377) (88) Adjusted1 profit/(
Slide 31: Wealth and Investment Management
Wealth and Investment Management Adjusted1 profit before tax by business 2011 2010 change Six months ended 30 June £m £m % Barclays Wealth 88 95 (7) Investment Management 51 31 65 Adjusted profit before tax 139 126 10 1 Figures are adjusted for loss on disposal of a portion of the Group’s strategic
Slide 32: Barclays Wealth
Barclays Wealth 2011 2010 Change Six months ended 30 June £m £m % Total income 848 757 12 Impairment charges (19) (27) (30) Net operating income 829 730 14 Operating expenses (740) (635) 17 Profit before tax 88 95 (7) Return on equity 10% 10% Return on risk weighted assets 1.3% 1.4% 2013 commitments
Slide 33: Forward-looking statements
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 certain of the Group’s plans and its current goa
Slide 34: Investor Relations
Investor Relations Contact Stephen Jones Charlie Rozes +44 (0)20 7116 5752 +44 (0)20 7116 7599 [email protected] [email protected] James Johnson Richard Caven +44 (0)20 7116 7233 +44 (0)20 7116 2809 [email protected] [email protected] Maritz Carvalho Arésé Poll