Barclays (BARC) Fixed Income presentation summary

Q3 performance and outlook

• Statutory RoTE was 11.7% in Q3 and 13.8% YTD; excluding the £225m American Airlines portfolio gain, YTD Group RoTE was 13.4%.

• FY26 targets include Group RoTE above 12%, income of c.£31.5bn and cost:income ratio in the high-50s; 2028 RoTE target is above 14%.

• Group income rose 8% YoY in Q3 YTD; more stable income streams also grew 8% YoY, supporting a >5% income CAGR target for FY25-28.

• Group NII excluding Investment Bank and Head Office reached £10.3bn Q3 YTD; FY26 guidance is above £13.7bn.

Costs and business performance

• Modest cost growth is planned for 2025-28, with positive operating jaws each year; FY26 cost:income ratio target is in the high-50s.

• Q3 RoTE was 21.2% in Barclays UK, 23.5% in UK Corporate Bank, 23.8% in Private Bank & Wealth Management and 9.5% in the Investment Bank.

• UK lending grew 7% YoY, with mortgage balances up 7% and UK Corporate Bank loans up 14%; £28bn of c.£30bn targeted UK business growth RWAs for 2024-26 had been deployed.

• Investment Bank Q3 income was £3.129bn, up 1% YoY; Equities strength offset weaker FICC, while Transaction Banking income rose 9% YoY.

Credit quality and exposures

• Q3 Group loan loss rate was 43bps; Q3 YTD was 55bps, against through-the-cycle guidance of 50-60bps.

• UK commercial real estate exposure was £17.8bn, 4.9% of customer loans and advances at FY25; weighted average LTV was 48%, with 15% of exposure in the US and 71% in the UK.

• Structured financing exposure to NBFIs was £65bn at Q2; Private Equity and Private Credit exposures reported no losses since business inception.

• Q3 US cards delinquencies were broadly stable QoQ; the US Consumer Bank’s average cardholder FICO score was 755 at Q3.