Barclays (BARC) 29th Annual Financials CEO Conference 2024 summary

Progress on strategic plan

• ROTE increased from 10% in 2023 to 11.2% in Q2, targeting above 12% by 2026.

• Over £1.25bn in capital distributions in H1 2024, with £500m in dividends and £750m in share buybacks.

• Investment bank RWAs held flat, with focus on growing retail and corporate UK businesses.

• £8bn RWA added via Tesco Bank acquisition, part of a £30bn UK RWA growth target.

• All key return, capital, and business metrics are tracking the plan.

Capital efficiency and risk management

• Investment bank capital efficiency improved by 40bps since end-2023, with reallocation from banking to markets.

• SRT/risk transfer programs used for capital and risk management across portfolios, including a $2bn US card deal with Blackstone.

• Risk transfer is an ongoing, evergreen strategy across wholesale, cards, and mortgages.

• Basel 3.1 impact expected at 5–10%, to be absorbed within the investment bank.

• UK and US regulatory alignment on capital rules is sought for competitive parity.

UK business and market outlook

• Upgraded NII guidance to £16.3bn, supported by a structural hedge program moderating rate impacts.

• Mortgage market share growing, with specialized lending via Kensington and new co-branded credit cards with Amazon.

• UK economic policy seen as business-friendly, with focus on growth, investment, and housing.

• Large banks expected to benefit from sector consolidation as smaller entities face regulatory and rate pressures.

• Private credit growth presents both opportunity and regulatory risk, with banks maintaining broader client relationships.