Barclays (BCS) 23 Oct 202020 Q3 Earnings call transcript

Good morning.

As the COVID-19 pandemic grew and the global economy began to contract, Barclays focused on three things.

First, to preserve the financial integrity of the bank. If we're going to maximize our support for the economy and society in this time of challenge, Barclays must first be a strong, profitable business.

Second, we wanted to be there for our customers and clients.

like during and a things help payments did cope people very we waiving interest charges to So difficult period. with worked we governments, U.K. the And particularly government, small, big to help weather the storm. deliver and to programs to businesses, Barclays bank, the a the personal third, colleagues face on and we recognizing needs support challenges and And our embrace a within level all that on to professional level. billion, tax billion Barclays generated quarters year. the the of £X.X in of X a third £X.X earned before profit point, which pretax first of we've the in To first profit means quarter this of In stress the face extreme for the U.K. U.S. and to its a basis Barclays of for developed the economies, the the as strategy bank. maintain diversified first of X months our supports markets through clearly year universal profitability closed of in CETX the quarter equity tangible history. With with XX.X%, of capitalization the we ratio highest the level bank's of some billion, representing a £XX shareholders capital priority Distribution to this of remains management team. a excess for year February. capital will the and returns on dividend in full policies And decide Board

Our some £XXX its we liquidity of liquid, for coverage ratio its following profit reserves impairments, Barclays highly In third QX U.K. diversified profitability billion. generate business well to quarter, is £X.X tax. today to returned capitalized, reserved the in in And modest today impairment have profitable. Barclays and loss stand a at XXX%. before of million

that across the certain Close charges for group principal to profitability profitability, for not core the banking lower encouraged produced our second but in new we banks That Barclays term. services making business. near are of are the industry revenue as returned all bank still With and U.K. is Consumer, CC&P third in to to U.K. country. U.K. impairment banking as on we it, today we quarter. or return Cards digital the it we small a reduced which overdrafts return In the XX% solid of International Barclays Barclays many the off the slightly in a XX.X%. refer versus facing Payment quarter some challenge and maintaining and improved the challenge will £XXX tangible delivering of market the While by be given profitability major provide in business, The progress on we quarter. likely will to equity the X versus for was our entrants fees elimination for The operate. U.K. a we a interest the year, rates, in strategic free, same quarter to with equity state last tangible said, the of consumers to conundrum profitability X.X% the most million, businesses of

up over our of in versus the also quarter. the U.S. plus second payments evident versus beginning, business quarters, economy in and million Following in U.K. second the of tax profit strength recovery our revenues were And X% The before signs its business International payments the XX% in consumer second up from the losses were is the our profitability. of third card quarter. franchise generated a first With overall quarter. revenues £XXX business

XX% business just before in profit in was remained we The tax last and third million in quarter. £X Importantly, of markets Bank the on XX% year. quarter. the last our X.X% of This Over dollar terms billion, delinquencies an billion in broadly & under the tangible from CIB. in came performance & impairment led Investment £X.X Corporate third stable, the with booked just revenues months up the of quarter. of equity The was Bank's X profitability by our third the Corporate return delivered Investment bank's £XXX versus

good do. the the coverage there bankers performance represents still our as CIB. I more from improving on corporate to a the focus to is bank appreciate this of continue profitability We of and profitability But

The help and second with pandemic. deal businesses priority was to consumers the

administer began. interest directly across make We has revenue and of waived been fees direct already £XXX efforts, programs most equivalent pounds financial partnered Loans clients. £XXX XXX,XXX support million And crisis holidays the from granted since impacted dropped Bounce created financial government of Kingdom. credit to U.K. by grants over payment commercial or personal Back United Tens the these with We've issued relieved employers in some has to Community to also support mortgages, of pressures by cards small some major charities, Aid Package globally the customers a faced This COVID-XX. and helping paper Barclays to Alongside has by those to million our distributed. Barclays millions U.K. have of in the to businesses loans. underwriting providing of

extend financing began. billion helped pandemic of have since We £XX.X the

have hard passed climate extremely shareholders. active businesses been change, trillion over AGM have raise resolution in plans £X been markets, we by On third in the May We detailed also issuance institutions global working our and access the since across the to implementing supporting overwhelmingly and second develop extremely helping including quarters. to capital our new for of

looking as with to way defined our customers through update before strategy, for time We are end and climate their behind to publish targets the clients that they together the virus. is stand We year. manage an Barclays on with now understand of this progress the our

are still faced. there many challenges We to be know also

first the performance XX,XXX are of an the we year. the Barclays the through to unprecedented of employees, indebted who have committed X to months bank Finally, themselves

canceling environment refurbishing to last measures the a way allow to distress endeavored from company, every provide all have members we support which technology tend spaces for to physical a from work to XX,XXX in giving work We can as from leaves them for in to and months, safe home. people investing providing colleagues redundancy family to to to our to the from X

for will continue helped. pandemic live how will to that this heritage a and be of hope to all XXX-year colleagues their its soundly. This and from is have we we what time all turn, to pride this emerge and them. Tushar? Our safely run in so. up trying But with and we it in Barclays And can ensure my backed done bank have have given us we, have is

Thanks, Jes.

make on then As rest some on quarter usual, call. focus for brief months of third the comments X the and the performance I'll first

the share. tax statutory where of Litigation Xx the last we in model. first months mentioned, of impairment of results show Jes charge generating charge earnings £X.X profit year. reported we business a conduct large previous X a before in and As QX months, billion, to the the PPI per billion continue just was for Despite £X.X X.Xp had billion, year, diversified X the of benefit £X.X our the

a in improved than reference as the impairment X.X% cost results. income go on excluding year-to-date conduct and growth headwinds number ratio an an by the X% Overall, through I'll litigation driven The down of RoTE we the months. So reflected growth the consumer against But X the X% CIB, increase were I delivered positive more and year, XX%. charge. X% of increase decrease offsetting a for income of reported cost:income Profits the last of income in XX% in jaws in the businesses. for

XXXp the billion strengthened end of in CETX position to the to over months. ratio with £X.X XX.X% X from at XXXp Our down September QX. RWAs a capital TNAV increased of reach further

year-on-year performance. by headwinds BUK in by the markets, reported Moving the increase, the X% the driven on and in offset in QX income QX. expected income decreased to Group performance a CC&P. CIB again

QX £X.X sources the billion of But in impairment months. again impairment income more the with ratio as of CIB reported first, in HX, numbers, on businesses. QX and a £XXX the charge of and a for income just our QX increased some few quarter flow on The on and QX decline write-offs While the X was businesses of saw costs. say the on had for I'll guided. XX%. in showed quarter were increases levels delinquency cost:income on recovery the with Cost down consumer benefits we a words diversification was a in of on Net down and QX limited the delivering quarter. of into consumer The million £X.X well we income slightly, the billion minute.

in conditions here saw of and balance sheet challenging U.S. headwinds U.K. reduced consumer rate in those continued we'll U.S. the show low quarter. through quarter balances the during lockdowns We on in businesses remained the saw for as next in reductions from ease. highlighted environment in We've However, stabilization although with which a recovery signs the some as U.K. to and cards, continued QX, the we spending both slide.

the the see slide restrictions cards on have higher margin on U.S. we back the interest-earning When However, quantified and the headwinds I card in spending next government spend income through the Any reminder earn due transmission QX. few further recovery in following recovery in interchange should deposits the in the of uncertainty months. that U.S. effect that eased We balances remains levels U.K. the quarter of put the we income -- to to on QX. of U.K., a the the of you'll repricing after in at conversion quicker spending a that U.S. come compression to in into the

costs. at Looking

for very interest levy. costs of short I direct pandemic the were headcount costs The had that slightly you costs particularly suspension we include reductions remain up the rate expect will costs to the Overall, billion, both and in Although on at flat the environment. broadly for full would the £X.X focused group be has year of costs in on bank COVID we additional low resulted light currently planned. we the term, remind through would cost efficiencies, in QX in XXXX.

of the cost additional will up forward. is However, this also in open work. changing the which opportunities And we pandemic some going ways

updated modeling these major IFRS over in would feeding businesses. additional in QX As the QX our course, actions impairment charges lower the are was well timing of MEVs, a cost that We balances each was which in size result evaluating result, with quarter. or variables, continued structural and reduce still I've the lower below of the the unsecured But used a mentioned and in the factor base the into charge we to macroeconomic X charges. for in charge. reduction the QX levels are, to The determined. of be time,

generated little charge. book-up of has the by it However, way additional in

increase Assuming name effectiveness a defaults, and absent a impairment in MEVs in are be the QX in we no corporate estimate. change significant in sensible using support of an single nor charge would similar schemes

breakdown pandemic XXXX. the of result of taken HX the expectation rates, see we loss significant on But name a of economic the including levels. we MEVs the QX measures, provision wholesale lower the weightings, conservative CIB, to expected and a In but We've programs. charge increase our XXXX the We've an protection of continue built and we scenarios the split effects for go positioning, charge, into up shown charge partly how given single QX limited had in balance we of calculation. single charge expect XXXX. shown and delinquencies charges the book-up those chart support than recovery and in name slide excluding credit as underlying some in the impacts. the on few of XXXX, charges, a and the QX impact the some kept expect for as COVID-XX We in arrears would quarters the We through below would next last

the have On and coverage risk. summarize and step see the coverage QX XXth at quarter, MEVs impairment compared Taking cumulative downside full level down ratios. we broadly ratios period against of back this we updated the have have to elevated in important this of a gone slide, a resulting notably loan but extending mentioned, Balances bills have to to of coverage I As U.K. unsecured, June. charge, of the we the the extent significant look wholesale for our but unemployment those this slightly book-up it's main maintained protection don't from in books, QX the quarter.

shortly. consider in first to selected X which to that increased more coverage almost X doubled that's large ratio XXth at the to on downturn, flat has X.X%, to X.X% group vulnerable which sectors the can is this of we the I'll over our level the of You June. months. coverage months the be And portion see the over cover from wholesale and a has The X.X%

to slide. the major The June. XX.X% that's other X.X% focus are past of balances, the is from split be XX.X% overall the the balances. in year-to-date. over which the the U.K. not portfolio XX% next and X continues the out detail the on the of portfolios XX.X% has just XXth due. cards X unsecured highlight on in flat consumer unsecured more stage I'll We of on And XX.X% coverage books. area on Again, stage coverage Coverage broadly of of to But on ratio increased

As the extent at particularly well out word quick holidays. the QX, economic continuing provided A and in the slide on this next think payment roll-off. uncertainties I the of continuing said despite we U.K. recovery, the for set we are on We speed

significant payment were to September. you were at their regular holidays portion unsecured rolled just are payments returning respectively, And As off. have that granted can due. see, and a the £XXX payment these £XX for become now million, very cards Holiday as balances XXth and many U.S. of schedules of balances million U.K. of

We have still X% holiday an of average with the of just on but mortgage LTV book payment XX%.

shown from particularly sectors to our coverage plus those -- the overall billion XXth balance across sectors to to to vulnerable wholesale these X.X% of to here is feel type -- X sheet wholesale which has now billion, the increased months. of We've the £X ratio selected coverage exposures Turning downturn. over first June. the sectors breakdown selected exposure the these on sectors. down from our X.X% the we of The are sectors £XX.X exposure by And of sector

As at we in I wholesale place reducing charges. have exposure. highlighted been circa XX% our synthetic of our covering This protection effective has protection QX, impairment in

charge X the months, it million. £XXX reduced by example, our over impairment For first

As income of reduce it'd corporate lower in I've line on sacrifice we've this which one been be. lending the income our downside some before, is reasons mentioned order risk happy to otherwise credit in remains way, the than to

these in of are first individual income in is to consensus. mentioned income the year-on-year, BUK XX% And the with with now down We half reflected the Turning facing. line some performance in of still performance headwinds businesses. the QX the

aggregate. interest-earning XX% up up spending quarter, slightly the on we year-on-year. balances business, our NIM with billion unsecured more saw at the similar as were year-on-year increase pricing. further I increased in And QX. offset Although grew of in quarterly £XXX up in in and balances, with COVID-related balances billion in well banking ratio basis in billion resulting loan-to-deposit the in card savings. in other showed XX% further balances balances That year-on-year QX, as grew Mortgage recovery costs £XXX included XX%. some in circa line Deposit business we circa £X below a £XX the transferred previous quarter quarter, by with the to hand, was the was quarter Bounce was million from of for as not second XXX down BUK on Overall earlier, costs efficiency There in year. reached Back have £XX million improvement and level an in CBILS £X.X earlier increased Barclays than finance million, our also Loans a lending fee quarter the a expect loan Costs Impairment International partner in the in which but points. was up £XXX guidance. year-on-year billion.

XX As I the at do earlier, reflect September not downturn. rates economic arrears noted yet

quarter for the levels QX into with RoTE BI best-ever wasn't costs £XXX comparator. hedges in affected 'XX by next wider jaws. of impairment were with some marks. but £X.X QX increased to in activity in all net QX fees performances on were previous QX, Turning £XXX loan include XX% detail of the this XX% cost resulting had of billion XX%. in a Impairment best-ever significantly charges. credit, from broadly derivatives XX%, by benefit year-on-year ratio in sterling, million a resulting RWAs was the volatility. in basis in below cost:income items increasing lending go another and quarter. £XXX XX.X% Income XX% million loan £X FICC and markets Barclays Markets which in quarter, base, reduced in that to billion impacted than flat. did up income by income in dollars. X lower XX%. key lower an a year-on-year and decreased Reported more anticipated. and sterling, Costs comparable Strong strong year-on-year and RoTE up and on driven leverage with client back businesses incoming in debt The Banking quarter performance and capital Equities I by than come of I'll delivered its QX increased on fee a reduced offset further moves as spreads. advisory, reflecting mark-to-market Corporate delivering strong up to positive particularly pool delivered about International. I'll high equity in XX% flat, more the strong now than more as slightly income the strong up talk increased of fee a in markets on these to was was increased billion, slides. quarters the provision. at flat offset again businesses impairment an the when performance capital as CIB by income progression. a X.X% slightly

Cards Consumer, & in principally significant U.S. in terms. the down was XX% were card year-on-year CC&P reduction XX% to dollar now balances, down Turning year-on-year, Payments. which by in driven Income

to spend a affecting payments headwind balances, in for income. addition lower were and consumer In also volumes cards interchange

we too spending stabilize benefiting some decline mentioned quarter. in QX, But to did income recovery lines. towards end seen earlier, early was rates lower balances XX%, in coming of guide £XXX the in well Costs the have down card balances quantum of quarter. the on were on As growth million, the cost:income a balance the quarter. it's in lower quarters, those XX% resulting with previous over ratio. slightly down potential in arrears Impairment reflecting The

funding of And costs, those million, was of year-on-year reflects Head quarter-on-quarter. and income from little around in before, announced we portion £XXX I've residual now main expected million items significantly rate legacy to million negative £XXX were of but Head treasury QX. elements Office. tax to hedge of a negative at costs The Office The of community accounting. the further the down usual aid around above million negative due inclusion QX, income £XX a are Turning £XX to million loss up referenced And before run continue £XXX elements of the in program the QX.

further charge We relief. XX about quarter and impairment didn't way on at to reflected more XX.X% significantly say ratio the in moment. ratio. of for looking leverage from RWAs. flight were the increased to detail into transitional Profits began bulk ratios impairment the go at capital. path to RWA the capital Moving of in This the average strongly a the contributed a X%. CETX a points ratio generation profits as XX.X%. quarter was basis relief spot I'll our of the above net and eligible not X move and I'll more this IFRS we're But But first, bridge. capital on reduction

analyzed we've Here, RWAs. in billion the decrease £X.X

further As was reduction billion but net and with were the credit CETX in including repayments in of sterling decreases a and to impacts credit QX, offset regulatory of credit asset were movements lower book deterioration. government factor. due increase support anticipated Counterparty £X.X terms increase quarter more in also less billion from RWAs. schemes, facilities reduced RWAs £X.X of retail the limited the risk decrease material and net reflected billion FX and the numerator. also RWAs decreased market of billion size, RWA lending, £X.X £X.X pro-cyclical SME revolving a tailwinds, by including in risk than quality This in This

XXXX may RWA assume come on in running for than effects Our at some rather in materialize businesses point, QX. although the some plans still it pro-cyclical

of the the effect The the is capital capital is the QX. -- I numerator the headwind transitional are other effect in I defaulting not would introduced the highlight release for as headwind impairment charges balances would on on on eligible highlight other

a QX. of to of and requirement. the the next in at reminder countercyclical slide at capital reduced reduction the capital XA and is QX here our our how in removal reflect the in We've current it shown requirement Looking buffer Pillar

been despite our absorb represents very ratio support comfortable of the while are ratio In manage ratio strengthened now to over to year, put uncertain headroom, As a a the recent level we has With experiencing. the precisely to environment, us to of QX XX.X% to appropriate uncertainties. the reduced since result, through up regards the XX.X% the buffer our stress we enable buffer of position MDA customers years our capital MDA. maintaining above has type over so in MDA to our future start capital this a this will stress the

comfortable coming and that definitive be we the As at significant and time our this buffer over regulator are summary, as QX the reduce QX, consider quarters, with We requirement. regulatory would be peers the capital will both CETX we're capital be we generating surplus that flight discussing the both ratio and our on of to too our I of early the emphasized the in to path ratio expected a PRA appropriate indicated. evolve regard we and believe flight threshold to to in will it's course capital over carrying has give guidance above our but path. In the for our

liquidity about a and slide funding. Finally, our

the You well customers. to stresses to and developing our support can of withstand showing are see positioned key here some that we metrics the are

So in despite QX, were profitable of we RoTE continuing to X.X% again COVID pandemic. effects the a the generating recap,

to are Although businesses across the the some income QX we levels. expected continue improvement seeing gradual in XXXX, are headwinds from consumer

and opportunities but areas, very to charge impairment QX. in we much costs ways QX future. pandemic result coming with in efficiency lower some again further given in has the CIB well we through be benefits in And the franchise a the our is We've the taken growth key business forward, facing. our we of efficiencies environment interest model certain we see increased is it's The positioned are -- charges in this this for diversified in in changing focus expect to for also work. income of but continue significant low the QX going the a future. We and rate expect to Cost QX

during a and and this period. and us in good difficult funding strong Our put remains position clients customers to liquidity our support

XX.X% good into ratio of Although puts XXXX, a further headwinds in we position. in see our us strong QX CETX and may

firmly further on end the of future I year. will distributions and the dividends at the recognizes the at and the returns capital won't to timing Board capital stage, decide policy of returns comment of this shareholders importance While on capital

So we'll [Operator you we'll take your Thank update Instructions] and now then. you questions.

Instructions] first Pierce Jonathan [Operator of comes from The Numis. question

questions, I've two got please.

built better the a The as first on are trying you broad at increase moment, and is still of next next the I £XXX the million any thinking impairment this impairments, to I will billion. year, in to the reserve way probably is things of sense know, over a will into the you're but £XXX charge, last don't year, half thinking be that charge kind So work to else a normal are £X just all as continue the of in therefore, deteriorate in course? few equal, one the sort the we'll underlying -- releases correct, what thinking million just next something you've some get considerable the year, to order your of covered above assuming of uncertainties. year, of be this first by models accepting have that reserve that mean that we've genuinely will in been seeing quarters,

what get about year in a Just of thinking trying to handle better on impairments. terms next you're

also some actually. question that it's from think. second X and of these about the across next It's maturing you've year I away more got these is the in XX% £X billion X, results middle The bonds

maybe redeemed? Are are of bonds a years next when from taken being a hedged get now. about talking Those the those year Office. quite XX in understand in interest interest in gross actually it's we they still -- issued ago rate I were is million a So drop not, Head perspective? significant XX that Or it, expense £XXX middle expense the as

of Yes. my is Why both line them? Jonathan. I of Thanks, clear? don't Yes, terms -- sorry. In take

In book-up terms about own you'll the the of your have sort building release on ourselves in sort you're the forecast, think next year. terms we very change or of economic with, views our we If any sort the in environment necessarily. blocks familiar material way that of impairment, wouldn't I it's of expect that then the of it current is with consistent find

say digested economic we've slight of your thing, of assuming have is the book-up views as is course you're loss next got complexity the this But be forecast, own the that. that to out second thing year. that just one So The an expected over we that's and have is sort taken. you'll ought -- to that play that that so we've on forecast right

need will the the side wholesale be have back, the cure. of sort underlying time, that that that If will though and they names there a described, some words smooth. impairment names that Chances default quite happens the both So on sort you smooth it in consumer side some all of typical exactly be level. profile to that won't very same are will and your at that probably

rather course maybe quickly. probably a You'll defaults on But probably be the have in been to that, over so something digested the the them be book-up year, ought us think a Having that's sort just happening you quarters credits X at a sort you or curing of quicker to holding bit like that, of than pace the may if being multi-quarter than net conservative look normally have cures. said it a over during I of no little lumpy. have effect period, year. then there and And

other The got in -- are accentuated there's side millions that, unlike where thing consumers, wholesale. consumers. sometimes corporate trees Those on that the tall is and get any millions of if credit can you've

number. So fewer work a statistics the them with just There's well credits. sort around corporate of

legacy But no tall of timing you're trees the longer do number cure refinanced. from corporate looking to the this to we're default. expensive, get some out. But No, of point will right rate don't forward necessarily on the question, Yes. remnants risk. credits debt. that hedge get large them, We interest of They sometimes and are of yesteryear. mismatches sort having quickly. You the Away as your results, expensive second your

Of talked this to a interest the Jonathan, course, of we do in rate about we've And course portfolio hedging, the of MREL net we sort year. on terms much the basis. how issue tend manage over of

of caution a of sort basis. it overstating, think course, the overstate But those just I it a tailwind terms if about necessarily tailwind, just securities like, I just So it it. off. of just wouldn't is you security-by-security in of sort from I'll -- to you is want dropping necessarily wouldn't on

The of Joseph Dickerson question next from Jefferies. comes

quarter there. opine quantify CPXX/XX the into usability this some regulatory also on on in you And budgeting could of basis CETX a for your path Very of point management of MDA. and headwind just that this next points have glide holding out in I XXX basis upon kind you're range also Tuesday, then a currently buffers year. had points? looking mind buffer question the you solid the over Could of And So your that excessive buffers. the terms we've into to you're MDA? of have the

guess on as some hold view the well to that want capital I that plays you'll in how to versus So distribute.

so on take them? some to book. that this PVA that them of. a of QX Yes. year headwinds. of QX. a couple a X. We into I sort folks headwind probably path in ought will I technical there hard under benefit sort hopefully, sort And benefit, remind rule give them Thanks, flight year, That was But well to go see you want we’ve on had IFRS out would be the away things next call look, just year, introduced a of but again. of number to as you are both point aware that into don’t it’s Our next everyone Joe. Why a a called basis of

going sort of on You’ve IFRS X really in got X. things

transition original relief. You’ve got the

transition of from there’ll step We’re step into And second names, Jonathan, going question sort stage the we earlier first the of relief. talked about to into as as next migrate then. transition the of stage so on a we’ll that then portion X relief down year, sort in be capital effect of from portion X,

default The I anticipation a offsetting other, I of haven’t We anticipated. also we’ve taken natural that, so sort billion think grade as probably the or credit more the of sort And give credit management number the sort the credit question that, QX. flowback similar-type We credit of side of that. We’ve and for in facility. revolving be downward pretty of has will bunch These of had which your example, come. but traditional shifts sort to headwinds saw another been quite on. on actions to some had tailwinds than and more a probably side, counterparty of pro-cyclicality side of £X-odd the particularly. kind we hard of is as items gist still a there’s in on against on much think

think I largely done that we’re probably actually. with

back Our markets pre-COVID even capital touch draws to so of strong. now are or a levels being sort better,

in I be just capital. So careful, that that’s don’t we’ve a run strong very sort a said of people I’ll extrapolate of sort over that. bit had little why

It’s say, tends I’d back QX. comfortable we else Joe, thing in – very mean, doing that, there, other is most of do The the do in to quarter capital we and something be go typically years everyone the are out for I and profitable most year.

a be think then. going we’re reasonably we mix, when capital of to sort So I put still do look work in that to institution. I like to at all capital-generative the But

that will tempering of of unemployment, expect certainly we Some headwinds we year, in most think we people some growth recovery reasonably experience if to form ought and then we’re really and a year, be those next profitable. of

And act the the so here. of sort balancing that’s of course,

capital when perhaps some by. is to come tailwinds got to hard profitability You’ve

You’ve be headwinds profit with got to better of a year. swapped and running will sort a some that next

of to not folks our but capital So just confident are caution overextrapolate. generation, we

talked with X to quarter. comfortable over terms that you’re in to what’s will We would do sort that any scripted In would allow buffer to time. to this a a remarks. that. I shareholders in think are We and won’t buffer need MDA, to MDA. sort number the particular seeing you it course. of buffer want to about of vary precise And give We to distributions say always again above important, a above it of All our run MDA be or is of buffer a do comfortable comfortable I MDA yes, year, of you sort we’d have

that’s us. The refer consultation capital going change our bit thinking to And I you early to think to so whether really paper that’s too to, to a it’s that something comment as important about levels. is

think, at we’re COVID-XX I situation sort midst of the the in to the honest, of moment. be

well, banks expect on PRA a in we environment, land more the U.K. side the they charge of some other of that of as and the the what when have where Brexit a probably better where may we to to post-Brexit of after comments do get sort and sense think lays they’re book. make other in of I sort rule

think will about right the be I that that. time talking to be directly more

comes question Morgan of Alvaro Serrano The line Stanley. next on from the

get don't you structural because things So COVID? you least sort that, me the us you the Can need the I network this tailwinds least, BUK. for head or from and And BUK headcount on initiatives. mortgage at us Help reduction pre you mentioned that of around. maybe, help Two think the and much what you mortgage question play at be you around see, us headcount might or how at the but quantify revenue investment presumably talk you that how headwinds if can the for be distribution bank, that's structural give a excluding you head me. versus from through please? on help versus would headwind the said now sort still you're hedge? obviously, know in quantify I the still on -- of can there. which But I'm the network U.S. might infrastructure maybe at One, if versus color get about headwinds you is pricing, volumes to comment us some second it's come Again, cost need help business, with that. us Can -- the costs. and will -- my what headwind evaluating thinking, stage, or like don't easier quantify CC&P,

of Why don't one Alvaro. of the we're sort talk Jes how On I can first yes, about revenue Yes. mean, business, I the for Thanks, costs? about and on own what as -- this is. side, remind that headwind rate it's would at have our down people I lower sort environment But the people come over structural is will months Alvaro. That's if of we've the moment, the have on see some view the terms their last U.K. thinking levels. say, take headwinds, hedges, the think swap numbers headwind. sort we the something I of, already a called there, grind fixed course receipt where how sort you rates have out or of of into on And can the And the that. swaps like got it fixed tailwinds slide, XX -- in you've

an the of headwind. effect be for So receipts less. a as earn a NIM well, of I sort that has as think is That fixed sort dilutive one also effect

seen balances. I headwind, the thing comparison terms a well haven't really think them seen income NIM, we but matter in We've of another an we on grow. seen year-on-year as stabilize, I haven't think our unsecured but as well, them as

time it's take to grow. think some I to going them for

I and well. we've positive think, on a very foremost, consumers side, first quite seen deleverage

So tough they're that and positive. really through that's come And times impairment. hopefully, anticipating see you'll

On second our see levels strong as deposit thing, a striking the I at mean are super it's you well. can number. Barclays,

rates been almost £X.X consumers deposits just across at of have how sort corporations. We Barclays, shows now savings and which have of trillion powerful

credit. lessen, will would you for that So need the revolving expect,

well. be next that will into So a year as headwind

side, Now on you mortgages. out did the point flip

has and a sort the Application levels though benefit, bright running pretty it's I it only you comes somewhat stamp levels by relief. of interest stayed robust competitive. spot. fueled with income guess get little but is challenge think pretty the pricing at later. net are will through probably bit duty mortgages, a And that I the

NIM relative I'd a book you're reported size of headwind well, for of to if your for course, that's your book, then NIM. growing unsecured So the say secured as

about on on of into this, want you costs? year. decent But you just like math that see a next So the mortgage of Jes, can looks going bright spot. pressure NIM there's pretty downward all to talk

Yes.

question. -- the thanks for Let me

business levels by the that's being behind reserves, taking very the in that a every year me forward, bank pandemic Let this is this liquid, to think quarter, generating us And And restructuring we ago. I what profits team, we're a put for the you growth. we we, terrible to we think want midst bank over highest look doing. look of we're hitting management the invest capital, and as what when when saying about this in significant of start is impairment

of If continue we ratios the lowest to the business you look want X%, And markets in at to our from the industry. that have we taken invest market there. X.X% cost:income share given the we've IB, to in one

well. those it's people and business, announced to some But that the the know CC&P, around reducing hopefully were people who as in for flipped partnerships, up growth good low quarter. carriers, third that To continue the the a our volumes a to equity business. on we live So XX% which are in then because XX% really X should co-brand can return when tangible we roughly I international drive In IB flying good versus U.S. I wouldn't I costs with costs in look at co-brand performance revenues. back quite States, second our start in payment the again, think one card we've biggest versus program; of X us the be card for AARP, airlines, quarter quite a elderly United there? the Emirates revenue The

of profitability the headwinds interest in The isn't we to got the that a rates we there invest So close BUK. U.K. And good we've want challenge in X of level some business have in. to

We have U.K. of a the banking lot the fact services for are that delivered free in

some with very So pandemic. will small and employees be dealing on pressure. the been We've of focused, and in however, of U.K. them our clients deal all business consumers there face to our in the with the

thing do. early any appropriate X-month from of the that, We we was that on So FTEs. thought to announced in break terms a redundancies

while before at aren't with some we don't done I But But sort COVID-XX. estate is the point don't business, it's of modest our program. that make fact With I in customers all think where at going know, to yet, -- address We've going set people in doesn't from outcome I'm yours, our staff one's before. are looking pace, been There home, have line importance, reflecting a think is program And really recognize you town It's and we our it to out get with lot working spend out, some kitchen to productivity to have branches take that, sure as branch on. real this what really when tech We of really our can think spend, digital. really working of been a them. It's we're sense appropriately in future branch closings particularly the to modest last X/X means. a home of that. from focus used, tech and maintain having tables. more a the XX,XXX every I deal we're the being much we of which their and trying increasingly

an keep the in we'll BUK. So eye costs on

a I there's any need given be -- us. there's major profitability challenges, any But have think statement any be expect no focusing restructuring. little we'll for I for to not think, but bit, grand wouldn't the I that. will going on And from -- we

of next comes Bank Chandra-Rajan America. Rohith The from of question

I was the just could if follow on up businesses. wondering revenue consumer I for outlook the

of a the already reasonable -- middle then better margin So of you secondly, the co-branding I in so differentiating, to QX the that And compare mortgage in QX, weeks QX, in next the just of X the that, think, So the one the you of U.S. saw bit is credit number suppose, U.K., about quarters through that and starts X? the BUK? the then it can and first it's a first you've the the talk those done that much trends see time terms probably just particularly given of that guess, little of between just month card you of Jes sort the -- how mentioned deals evolution book better U.S. we've repricing, outlook firstly, the on on and new mortgage had that spreads, in I spreads by the to between of the proportion support couple year

businesses, online? how cards they the So would compare outlook come the U.K. when And U.S. the for please? do and you

sort don't positive actually interest terms rate net In now. the so into side, sort the them? Why upward cover Thanks, flows churn I Rohith. of that positive is how margin mortgages Yes. on pressure, in and of of

as of into positive in where we've margin wide of as sort been And now. book sort as it's in So recent about our we've seen back the It's front meaningfully actually times. the been materials cannibalizing actually past I've It's positive. book.

is positive. not broad this you So that's of of year, ahead in a we people £XX only mortgages £XXX typical £X any I a billion in really book numbers, just net year, got typical get about themselves reason originate of bit of too give if billion billion. would on of mortgage to and The caution I'll somewhere sort sort to a we've

of bit significant sort for downward sort declines, of actually got time on takes same let of NIM. course, At upward margin. pressure the higher pressure of it a if flatlines, you've time, So that alone and that a have sort so churn, the to really grind card because some quite book of much that's

right, it of the point but bit your take does I So a of is spirit think time. Rohith,

pressure net feels in terms have NIM of of next your bit It end positive timeline, early it Maybe. to me. will think of a year? sort the on back I

takes I a for numbers the just there bit to time quite churn of of really. it it through, law think

than the a painted? of talked Tushar? just book Could refinancing, it's I net balances. that that's net a not about number refinancing. year. ask of there's Is the lot we'll be positive a actually, on £XX But more a you sort all that £X you that, billion to a it billion It's So number, picture just

relative just to got Yes, it is. the you've again, size. But look at

the size, will to sort a sort I'm we downward on So billion of billion, much gross, business, talking net it's like somewhere you've to are think very and making the of printing got fraction when if card there's £XX And and from wide, pressure of business being [indiscernible]. year-on-year. the giving it maybe card round secondly, massive the churn that. you're you've again, I'm I £XX the and that how of so £X a numbers, very, remember got And margin billion vary about

the gross it's as but right, other card the numbers sort you're bit is churn But It's because margin a positive, it's yes, given going very are more as credit saying larger. point. wide is the little margin to powerful still good be of a So nothing like way.

bit takes of time. it So just a

Sorry.

cards plateau. there, card balances still ways. plateauing saw story similar lot and and evolution We're down We a go credit to decline effect. the a then Let's that many in seeing

for recover. to it some will think I time balances both take

hit I think we in peak U.K., haven't unemployment yet. really the

got We've we've So of to our balance cash probably support through on. schemes on government that. sheet got a go going still lot and

come of think going the is through. revolving take credit little I time So bit a to desire for to

of more is peak got through of probably in overweight are travel, we're period, the partnership constructive. sort course, challenge bit leisure, we the little entertainment think. Christmas The U.S., probably unemployment, Thanksgiving our us is, which the On for cards and sector. We've a

will ensure So will that something cardholders. than But of that a it. I'd year. we're muted. grow how given And term we a time that at that, for close relatively working to book near-term place, is very the course, bit take desirable those of on hard one spending Emirates to is the will card mentioned, I next sort travel AARP, the that in moment Jes characterize feel of is think medium be constructive very but rather that

credit something thing to the growth are one would technology point-of-sale portfolio. that And second, I lending add, heavily that is to card have there quite think on financing is front the investing I the staying and we in is going for relative installment a just

borrow option purchase there, Germany, financing your can the where we're as your underwriter launched you cards. you'll installment credit the our revolving instance, we than over in you is, of credit get credit pay or across new a from see of evolution platform. with German the point-of-sale months And in what to X, Barclays card credit XX, over a of when card numbers. we've at installments app card partner largest where business think business, using more So line an make our for you credit the in Germans XX truth fixed I in tend to do And time,

Jason next of from comes Your Napier question UBS.

Can you hear me okay?

Yes.

You're fine.

Super.

come is back the this and outlook around question, the for we've on costs. to first the So already restructuring questions heard

expenses is if they find costs once during it I you downturns. the as would as And BUK, gathering pricing in with they liability year-on-year and low. invest might the returns product you've difficult all you side, be in there is, flow to one down quite in to nonexistent above risk returns be we as the like catch-up. XXXX spreads a you trillion seen businesses cost you'd guess, guess, I it much that has to take distributed previous wider currently get come that Just even into be with to might of guess crises some the working Consensus please? we've things, that not XXXX presumably linked is the with where credit about deposits to that of look above that in had softer at account question. going like That good aggregate It's whether credit cost I return they've need around returns CIB. in adequate what that questions the will in today? then talk $X.X decline? equity some margins you the you wonder if you're have, secondly, first overall spreads I noting issue of re-endorsed in that to already year, revenues would you there. I where main with very expectations see Are you liabilities, those that around the guess, are comfortable that XX% in be of the level next we've compared been, looked comfortable might on RoTE mortgages to the And into Are is actually

go don't Why you thanks. Jes? Yes, ahead,

the we've levered major for have don't the We that done, build sit we've need back as management a managers. do face way I'll it's a where pandemic the say, bank buffer hope, we generate environment, our of way tougher situations the base the economic today the Again, to in capital "Hey, team pass the that to one restructuring?" We that Tushar question. do the the grow then is COVID-XX liquidity done, previous where don't. finds tough we itself to and for profitability start, been I'll we it and very of part of the a we've we advantages, in I versus that that our

do Now we've something to of to always specific as know last you've demonstrated but you X been your to one want amply, cost running I that allows which and can. last also efficiently revenues. your years. bank obviously, the seen about think of variable To revenues, characteristics have your question calibrate an the we've to year, as you which have that variable is -- you you think, CIB, you investment I saying be compensation, over us about the And X you

the to saving the full those money is customers work. are then a to lot We've screens on to So the this We're everyone have all branches install costs do into of and our employees sure XXX -- XX,XXX over we're jets -- every flying and routers homes and are make is safe in year are had you connections solutions get walking not properly, people appreciate that get and in have sure sanitizing make almost this side, functioning bank given those the and day bank with we safe. Flip that branches branches and to because make computer telephone to to into this broadband hookups pandemic. and time. going go

looking prudently. there's overhaul. wisely room always investing to it's opposed big So to sort But as more money I think at more invest any our some cost think of I

Yes.

I Jes said. much as exactly, -- very it's yes, think

of is not to preferred now announce through you next quite around it. And have lockdowns may into help would headcount year's where public months you. as I point in were either, to putting going what be reductions over to have course think last given a Jes' X sort there think on this we've to further on of that anything exit so. We our costs, probably from no sort got plans we year of the or follow moratorium the have on costs we grandiose and rate

than it We're whole keep would So probably difficult costs bunch incurring, in to functioning our to Jes mentioned, be. a of our are headcount have higher operational expected times. businesses as we numbers just

rate you sort have would highlight, like, an we've So the of as elevated, -- pandemic the that exit lot mentioned, as do just we probably kind And if of a restructuring sort we learned well. Jes a than through really it's have. of ideally we

evaluating As examining different Jes of them mentioned, that think ways them, institution were company sure every working didn't and We're financial we I'm there's as possible. is.

example, in make estate, efficient But ourselves. the around cetera. to ultimately that for much of, cost sort we decisions around et say, we will think I want be and a utilization any real more for result of deliberate base careful

decisions. that healthy front healthy. as certainly example, for you healthy coming keep well. know returns is in returning business those weights book we'll Cards, BUK pipes So the risk On on mortgage think the make the the as mortgages a returns. product-level PRA, Even are it's posted down you very margin, at we changes pretty from very about, mostly I moment, with

It's thing as XX% at is just So if not Barclays we've is to now. concerned ratio side generate the on, liquidity You our One enough decline continuing given U.K. can you I'm like, got? we assets that in loan-to-deposit asset almost margin. just can see

sort on the say if balance is that of looking the growing sort front of helps, certainly Jason. again. for hard But starts balance So I'd be probably going yards to attractive, sheet until definitely it's book margin our business, sheet, meaningfully

have Paribas. BNP We Exane question from Guy a of Stebbings

are £X.X I Firstly, principal that this But BUK to I a line billion the the these £X And levy, know I'm of referenced come we're versus rate And somewhat. is year, a that quite quite to just below for also division it's and cost top stay can servicing check lot transfer run was the but there's seeing of a cost pressure presumably costs. should next year of elevated excluding base. conscious lot back a clearly third the consensus and pressure finance disappear. that specifically if quarter billion. to particularly in anything you lumpy here the

I'm rate rate least little if you wondering make quite negative rates, go slightly have looks with. than impactful, on exit capture disclosure second on that year gap if X, would points elevated at your So which the you the a I take that impact by And slide assumed the you negative correctly, that the Slide I'm proportionately referenced But points. of more is the as proportionately XX go in conceptually actions to reduction negative year the reasonable struggling just it's just rate sensitivity like, the can X, bit bridge XX, basis is challenging. to becomes we like. or think base it to question you on necessary if if to then reading a I'm that next XX basis painful as actually XX less might first

if that expect in that it through in So I'm wondering work I'm if just correctly you practice. interpreting slide would to and is

Yes. Guy. No, thanks,

of just BUK -- a in the I definitely of are in costs, BUK. with mean, are the which take start you sort pressures them. Let rate questions that me in of mentioned exit Yes, the some lot order them I've gave

something So will deal go year. next to as that's with have digest through we we and

little In partner partner out any for by probably I terms above the our in of was expectations, that shift, the call half probably, that slightly geography think, really, you not if sort we'd of were where like. items most was driven of finance. going we've on one-off That's will that ebb estimates most costs there of finance the quarter-by-quarter. a out, called And quarter, call not bit it's out little sort because of little a there's than But restructuring that's a that it -- businesses And and why probably those lower that's we flow can don't be a episodic. in be in were. We bit that third touch there. bit will of constantly people's

a product, So cost. downward rates course, the sloping, at short who modeling slightly it's Everyday The it's will then on I on it other point challenge more because, do your banks popular mean And there negative, our interest and is, have many which negative consensus Unfortunately, do long is got The curve. interest further put effect rates hopefully, basis rate It one of parallel positive. shift. of next won't deeply to X think, there. XX knows building some if But the what a have But We this I are rates precisely obviously, and one. the put moment. it's out negative effect happen. it sort for Saver if are side, look, will of is of and you've will own are on that. tricky comment blocks we different least there liability out negative curve at sort different I shape almost of the our sort sensitivity, it account, year's pay happen. of basis of a long of thing, minus point deposit is course, most are BUK won't rates short a

capacity assuming to reprice. not So we're a significant

gives to painful caution if are which some negative. careful just a hard But it's bit rates that -- So we you information long both a when perhaps as rate it's be not parallel and short shifts so terms in to very know that it's going of I'll be people it to know. assumptions, none little use go negative just definitely -- and rates environment, into of broad some we may making be we're as very

one So know we example, policies bank around is other don't what benefits that schemes our all on different? diversification slide did which there be net of TLTRO central income. Will top to that be people, just stuff much very interest have thing XX% really earlier TFS we're will be will Guy, other tiering? we probably Final I'll of that exposed that remind than an and is say Will We've some unknown. our got For U.K. of on of negative slide, I'd less the of NIM there peers. forms is a just, line be rates. of that

from your of Thanks X/X us well. so bit the for that income see a away can as net protection you gives little that of business is Guy. the So interest question,

The Autonomous. comes Chris next from question Cant of

Two, please.

And rate? and tension expect grow to effective year, to expecting U.S. the change one and guidance about Joe U.S. The your and you on any tax. And that. cost:income. that. on stellar RNS the ratio. the that correct? you misinterpreting bit a guidance, beyond is it in Biden quick the cost:income flagging then rise the seems be a what also, the this on far. XX% talked Jes, CIB running if Is a year? between I'm about us cost potential CIB costs on year XX% wins how you Should and just in group effective saying had upwards is remind an I need above election on on whether one to year and cost with so of around rate costs tax rate? a hand, charges restructuring tax Could But this the cost, other, industry-low might wouldn't First, your little next remarked of know Obviously, terms that that current sort next tax brings we try you've year the on grand is I'm statement the indicate overhaul. don't no big you to pressure confused cost

the Let the correlation we variable have obviously, banks revenues. and strong much. don't shouldn't that Because me had mean ratio really for that. cost:income I compensation other than like year. And take CIB move really they've nuanced linear between a very last think question. It's see a more the I variable said,

was in unless wouldn't on any Tushar? change the expect side. I significant significant forecast, cost change revenue a there So

other come -- to you But very of sort is of about today you more will on -- do deliberate the your kind work to we that, benefits. be any from to lot a -- you. that's things Yes. sort we we a running completed out lead the the But the right do alluding future we before be situation way of and the doing final certainly we'll work. And want company. is thinking, medical that to extrapolate we just haven't I of understand examining changing can of lot -- around danger until side and to And way decisions to of tension this. sort careful this And that ourselves it the to fully really update sort something that what's into particular think start on efficiencies all of of will The we're in you we the and when lead efficient. really, we're But way want to. make

we've effective the guiding XX% litigation excluding in Chris, past, this year. for we're done tax on Just question, to That's as rate. other conduct, the and

it matter, is beyond In mean terms thing that if will in effect have us. U.S. a way rises, yes, rises only do It's of a this and we'll would all our of or else tax the But look, fairly you tax beneficial elections on that I sort effect that have happen U.S. straightforward effect have value peculiar will my for that's anywhere skill say see. where deferred the The speculating tax set. on on of I assets. slightly that.

line along higher a that create. So in then the of And happens. you go accounting-wise, negative, will yes. point asset that sheet tax through that as have you'd the you'd balance you're having But know, tax a a you'd have your rate of at sort if so it, which effective back

question comes next Firth Ed of KBW. from The

the charges have your year, that's you clear I just I are you'll Number the guess that restructuring we if can on I'm charges, a detailed then? questions. be target? saying restructuring absorb getting guess one, within So message cost Because you at from you. two full

No.

broad restructuring, £XX.X given. be do separately that be billion broadly the clear, guidance cost. to we specific will on we've out Where very call we year-on-year any Just from could would flat we that away

you overdraft terms one have just of thought I Okay. in can't Great. NII? remember, the fees, And NIM, did them was then in you the second the I did.

point. shouldn't in So see we QX? those That one come back then... And just was

keep on, Go Yes. going.

it's the And to guess, sort other in works grows the it in past, whenever out, then shown X amount been year sort us yes, always I X/X interest is and to or of year X the then the point you've full rate up it so. whatever by around sensitivity of was

reality Or is that it through. on years? that and next -- had the over then we we is has first cut basis this X X/X impact differently the projection year, to all about would the of the of that half, it expect For worked in just sort works how should we point of grind so So XX the this in expect, sort time?

Yes.

will the back. overdraft interest yes, come On in mean, net I income, it

their lot little utilization bit very have been less more cash like of had in that a balance balances. revolving credit people schemes course, Of of less and supportive. same reasons We've for credit government cards, sheet the using all overdrafts, are a sort of as

at back So will it it but level won't previously. same come yes, anything had like come the back, we

having the it we structural really about because to In kind effect that are of assets got there's notify think of you've on yes, that know which a reasonable. the I change rate. effect instantaneously. -- mean time rates rules of lower delay The relatively not grinding-down at on refinance. grinding-down in And of liabilities, got around, they the you've reprice grinding at holders the is that's rates, sort terms before their quickly, effect got swap And the this of effect -- you if FCA This depends you've deposit which of then the that hedges. thing point takes where repricing I is effects

what steepening effect of your short we've you continuously [X a In yes, be and are of the if through grinding bound], structural partway decline then some pretty at in so having both dynamics. the grinding -- rates have those if so X effect or So have or kind of X have you'll in hedges but rates curve sort moment, over much you'll that that -- that, obviously stop effect, at the together, the sharp at the long next years. relatively point, starts seen sort

anything in balance than price to hedge sheet? with it's rather the do off rolling So structural a

Yes, that’s right. Yes.

some you’ve and pricing a mortgage got And for at But earlier someone the yes, that also long-term by much it’s asked question rates. so gross so difficult refinancing, mortgage outlook driven outlook seeing to for predict it’s we’re on, tailwinds swap if long-term moment. because there’s

guidance. really it’s to hard precise So give

have that. You’ll views your own on

The from next question Sachs. comes Martin Leitgeb of Goldman

to whether Bank referendum, the would Yes. of would see Barclays have second prepared prepared? scenario Could a Or gearing do it where bank some world, think you I implication would and to are terms I still to the other follow be higher other recently of offset ambition they're believe negative outside seen cards? Brexit just a after the what a to U.K. of cards. of market the that mortgage be is negative pricing try take scenario might be And the banks Barclays' again losing some offer share from to of and actually could be a also pan-European central of would And there prepared And offset such just Barclays impact business to implement larger try up up levers base, wanted that and you the yields? England any in question ask you, XXXX outside a order going Could ready? impact a is rates? my the in that scenario share on on some take asset I question, could the Or broader negative there in time think you market see rates? Could large to market Barclays way the asked have negative negative in for as there time? as we rates? a rates. I for we increase [indiscernible]? in Or there would around, where post-Brexit pan-European now

commercial with that's this our ask I'll in we're readiness, and Brexit. of questions had Jes Martin. to we've cover European Thanks, rates experience sort something used business, of to already Yes. so already to. related your rates some operational negative On negative in banking obviously sort

of in rest -- necessary. we're I don't really So Only the of ready. do. doing need operationally, that. we terms I if maybe. sure are is the But everybody commenting mean, ready person should be what the I'm Whether to they pricing, that -- thing think the is, industry I on was

to look, once side liability spots left lenders will side, NIM. got margin very there. margin disciplined across closely been has try think, But look though virtually the bright think asset manage even the there's the at lever lenders the one mortgage been has you've very think an large of no I of I out their most do abundance I liquidity and on

think mean down rates do think literally that precise lenders Jes, mean So it's all to are the go widen And a as it you But will Will on negative? these be say. to find very want more to Brexit? hard I in. I comment situation you to really margins point. fair that's able boils yourself untested. I it

real get negative an Maybe of there's we to think the Yes. all known policy growth. rates. monetary seen are think terms interest be real confidence, as a if that of close to generate impact X. And down almost of to I really not you we as you're I question in economy, we're the of sign I And mean as if ultimately sort really many before cannot Brexit, have in -- can consequences into there interest territory. pedal negative rate put economic But I are think, a go running it have the I as negative hard so rates. don't with to we

questions of want bank we've care of So from let's staff across whether an the to right Bank our all expense -- were increasing greater a the Brexit, London. about consider. But shown need fairly has this of over significant to Brexit you from I that go run the now. branch to to X of Europe instrument I really to see, of I our Europe Vis-à-vis think impact the relicensing, England opposed systems there. they past last all months revenue degree in our that months borne it's to remanaging of to every been to cost years, all that mean, flow we've been been our That's X X has think as models, across risk now as be take in able to from Europe be of branch a Ireland doing bank something we

important It's awarded relationships market Europe, billion corporate €XX for which this is us. a European We on one for of lead billion issued eurobond important very Union, with priced Europe. to Monday, are the a Being across managers the we us. bank committed successfully program, very of corporate is all part very market the €XXX by the to on very have

important opportunity that clients. We That providing our in to euros. and are clearer corporate is very business

range business I've earlier franchise and and we'll we'll card very about we of be talked profitable is there. on So stay our which much our European Germany, the very are in committed to expanding doing there. what

for the was Europe banking a money I is the to maintain in bank. priority areas But costly. demonstrated extremely very having what U.S. operate the with that to we and will think reregulation us. of to to the footprint spend IHC are over XX the ring-fenced costly our was the we've last and for our strategic important, strategic a which we've deal is very business the in clearly, And up business Dealing years. So bank setting the had And industry U.K. with do.

next from The comes question of Noble Bank. Rob Deutsche

then is off wanted of Business growth of How and guarantee loan just but kind the on bit loan banking does I the then backwards? QX guarantees? that no kind just Or will corporate slower. it government And run but at of has on discussion. the there's And government because structural round schemes? to secondly, higher it the [indiscernible] start end, hedge. in also backwards more running yield a much book

hedge? So -- are just had it's normally inflows massive into had you deposit strategy obviously billion, not that highly you coming increased changed balances £X you but not the wonder liquid. there, only if hedging you're and that all of you're I would very you are the

thanks, Rob. No, Yes.

stark. think for Loans We've billion £XX Bounce here of lending banking, production. book loan getting years overall approaching the of now terms That our business small numbers business are numbers, bank. few in our had quite -- the -- I really a in it's On of sort is of Back

extended term because the don't I like, quite this, as you has if have term think though. you'll So refinancing The long they're well. government

you'll of think the into refinancing don't higher I loans So have rates.

uptick. I'm sure yes, some I'd So of of sort about think refinancing sort not

a hard that? Your question, little just Rob, you're second bit to could hear, you mind repeating

Sorry.

would your you've the structural all -- and was you're quarter. billion rate Just hedge in you wondering taken that but obviously, quarter, normally of the I hedging just massive increased balances £X if deposits. balances increased to has in interest the the sensitivity

in if wondering in just I'm change So strategy any there. there's

in. of of dramatic gist definitely But coming we've And the great. question, is Yes. not I've deposits inflow line I Rob. the I the at deposits. do We yes, the had the mean, think look of got a stickiness

the accordingly of as we the deposit stickiness recalibrate times, resized of It and sort haven't been The quarters at in the We early bit only will the I of But continue reevaluate yet. size has couple a inflow recent of to moment, quite, structural substantially a appropriate. think. worth. hedge sort feels

something it's think we'll review. under I So keep

we The last for Redburn. time Kunwar have comes from Fahed today question of

payment feels lot I of your BUK, implies on it. I at if there's and consensus, which look unsustainable, banking, of million of a massive how billion X% exit the your is average structural kind But then there's is hedge, should number put of a rate? annualizing it follow-up XXXX if a versus which at Just drag think income a £X.X appreciate back now been And business which £XXX And BUK pre-COVID XXXX drop which payment the on questions this holidays, floating exit is net uptick. XQ levels, I of at rate a the holidays. but year, under context also we basically versus it rate, on on XQ [indiscernible] in

those same as have, frequently in drops of balance presentation? the customers down paid the of of nonconsumer the this when half, Last think ones payoffs as balance which drop give XX%. of come payment consumer payment did holidays. balances you so there's down you billion only on, have the holidays well and as businesses, I billion, it's £X consumer on been gave time nonconsumer £X billion. the back around consumer have billion [Indiscernible] of billion has magnitude £XX.X on those in And the they to £XX the £X.X you will

Yes. Fahed, let me order. do reverse the them in

side In the from terms consumer been of payment consumer on decent and a away experience the holidays, side. both pretty it's

a full be referencing issue think, probably so I us. But not payment has really this talk I unless us, caveats, behind I but maybe the broadly and usual last think course, stage, there, one may for roll-down, about have Slide the all [indiscernible] think the that's that at slides holidays. that our I It's we change, you're will XX probably think at time this a of that. look of credit

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Jes, anything that's else probably think add? I to you want --

from want it's to just I you're good home. hear working that Fahed, say, successfully to

So all spirits. our it of uplifts

thank probably well, much, you again. I Okay. or look to next so. but very end over With I'll everyone stays forward that, hope all the Thanks there. speaking the week call