Barclays (BARC) Goldman Sachs 30th Annual European Financials Conference 2026 summary

Macroeconomic and lending environment

• UK lending grew at around 5% in Q1, with 15% growth in the corporate bank, driven by resilient business confidence and investment in productivity, technology, and AI.

• Debt-to-GDP ratios for households and corporates are at historic lows, supporting further lending capacity.

• Credit environment remains benign, with focus on expanding technology and product capabilities to meet demand.

Returns, capital, and distribution strategy

• Return on tangible equity targets are set at >12% for 2026 and >14% for 2028, with strong underlying momentum and capital allocation toward stable, high-return income sources.

• Capital generation is expected to exceed 200bps in 2024 and 230bps in 2028, supporting distributions above £15bn and increased dividends and buybacks.

• Clear capital hierarchy: regulatory requirements first, then shareholder returns, followed by business investment.

Cost management and efficiency

• Efficiency is prioritized over absolute cost reduction, with a gross efficiency target of £2bn for 2024–2026 and another £2bn for 2026–2028.

• 70% of data is now on the enterprise data platform, aiming for 100% by 2028 to enable digital and AI-driven efficiencies.

• Automation and AI are accelerating, with code deployment 15% faster and focus on reinvesting staff time into client engagement.