Barclays (BARC) Barclays 22nd Annual Global Financial Services Conference 2024 summary

Conference highlights

• Over 190 companies and 5,000 meetings set a new participation record at the event.

• Barclays' leadership outlined a three-year plan focused on simplification, higher returns, and increased shareholder distributions.

• The plan targets a ROTE above 12% by 2026, over £10bn in capital returns, and a rebalancing of risk-weighted assets toward non-investment banking businesses.

• Progress includes a £750m buyback, strong credit performance, and upgraded net interest income guidance.

• Operational changes include a transformation office, revised remuneration, and a focus on cost discipline and efficiency.

U.K. growth and business mix

• £30bn in RWAs are being deployed to grow U.K. retail, wealth, and corporate banking, with a major acquisition of Tesco Bank's credit card portfolio.

• Mortgage approvals rose 20% quarter-on-quarter, and 500,000 new Barclaycard accounts were added in H1.

• The U.K. market is seen as stable post-Brexit, with both major parties expected to support growth.

• Growth in higher loan-to-value mortgages is supported by the Kensington acquisition, enhancing risk expertise and margins.

• Business and corporate banking growth is expected to lag personal banking due to high liquidity and digital transformation needs.

Financial performance and capital management

• Structural hedges are mitigating interest rate sensitivity, locking in £11.7bn of income for 2024–2026.

• Net interest income targets were upgraded to £6.3bn for the U.K. and £11bn for the group, excluding Tesco.

• U.S. consumer credit charges are expected to decline in H2, with proactive reserving and a high-quality portfolio.

• Cost discipline is central, with £400m in gross efficiency gains in H1 and a target of £1bn for the year.

• Capital priorities are maintaining a 13–14% CET1 ratio, delivering over £10bn to shareholders, and investing for growth.