Barclays (BARC) Barclays 24th Annual Global Financial Services Conference summary

Strategic vision and financial targets

• Progress on the three-year plan (2024–2027) is on track, with more ambitious goals set through 2028 and a focus on sustainable, high returns over the economic cycle.

• The strategy centers on building a constellation of segment-leading businesses, including a global investment bank, strong UK retail and corporate franchises, and a disruptive US consumer bank.

• Structural cost reduction is a core ambition, targeting lower unit costs of production, service, and innovation to achieve all-weather RoTE beyond 2028.

• Return on tangible equity (RoTE) is expected to exceed 14% by 2028, with a 12-month run rate of 12.2% and increasing distributions, balancing investment and shareholder returns.

• Over GBP 9 billion has been distributed in the first half of the three-year plan, with further dividends and buybacks planned.

Technology, AI, and operational efficiency

• AI is integral to reducing unit costs and improving efficiency, but success depends on workforce readiness, infrastructure, and targeted use cases.

• Early AI deployments have yielded 6,000 hours saved in contact centers and a 20% reduction in inbound fraud calls.

• Cost actions totaling GBP 500 million in the second half of the year focus on organizational simplification and personnel, with quick payback expected.

• The cost-income ratio is targeted in the high 50s for 2026 and low 50s for 2028, with positive operating jaws anticipated each year.

US consumer and UK business performance

• The US consumer bank, now with over 20 million customers and GBP 30 billion in assets, has improved RoTE from 4% to nearly 15% in 12 months, aided by acquisitions like Best Egg and digital innovation.

• UK lending growth is running at 5% CAGR, supported by a multi-brand strategy, technology upgrades, and increased branch and service capabilities.

• Corporate banking has added over 1,400 new clients, improved loan-to-deposit ratios, and is migrating clients to a new digital platform for enhanced product integration.

• Deposit growth is strong across the group, with US consumer and international corporate bank deposits up over 50% and 40% respectively since 2023.