Barclays (BCS) 28 Apr 222022 Q1 Earnings call transcript

Welcome to Barclays Q1 '22 Analysts and Investor Conference Call. I will now hand you over to C.S. Venkatakrishnan, Group Chief Executive and Anna Cross, Chief Finance Director.

Good morning. I am pleased to report a strong first quarter for 2022 for Barclays.

and main income operating delivering three in is our of businesses. strategy we growth saw all Our Group income was this quarter. up XX% to £X.X billion for tangible Profit group £X.X was equity on before was billion, XX.X%. tax return and absorbing after costs. increase This comes an in And I remediation a that in will an issuance talk legacy the the in moment. as of of well about increase securities in as U.S., by driven over was particular portfolio, something a which

million costs Barclays and broadly from with assisted our improved target Unsecured in of and balances UK and benefited and Global below within remain for after has a XX.X% businesses, consumer helped clients We comfortably rates. performed XX% well income group rising of navigate of £XXX levels Our the well remain CETX appalling the also the before quarter. both well of ratio payments, capitalized Ukraine. XX%. quarter, to we our by performance lending has pre-pandemic range volatility consumer markets first was invasion the impairment as

Before highlights let of Anna two addressing our about matters. the talking start by performance, me quarterly I continue and

first, the The securities second is issuance in our is exposure of Russia. and U.S., to the over the

the products under structured our is as U.S. shelf notes sold business, amount our frequent year. statement issuer March, a a registered we exceeded of for about In elsewhere. a As of the U.S. part Securities the notes, and offered structured traded exchange period well and Barclays in as identified of had that registration

disappointed be the clearer you never pretax financial our million. deeply is XXXX. to quarter due The to of avoidable, £XXX a recession it and Anna of to this affected a recession culture situation first Details eligible in offer we about will impact purchasers course. of conducting will has these occurred. been the controls XXXX strong and be the necessity statement, securities. this was including I'm entirely loss take that a of The losses As of This through allocation of between quantum these the on due result, will me. published

progress since In considerable made fact, we improving have XXXX. our in controls

To-date, that happened And have commissioned review focused matter review internally our limits. I issuance and how comfort regulators all The that with with the I And oversight Board. within an on is happened this was absorb particularly this And response any it to have from the matter of note time, intentional evidence the we what and misconduct. some both constructively. they're is all the so found and issue At ability to immediately we fact whom our have applicable of our could same accountability where this happened, from our take financially. not cooperating programs, other external are escalated lies. upsetting. reviewed we having

until of we stock be will whether have impact delaying with we the this our with the buyback. proceeding concerning discussions ongoing fact that relation extra issuance activities steps However, We're reflects we this this. in And our issuance the a controls of in issue, But this execution of be we also safeguard. these are is SEC, This taking of as our occurred buyback to view the internal weakness over question enhancing securities a In the environment. an when proceeding. our are debt not concluded. discussions to control address will

of quarter. the we in just to have second Our expect And position the proceed end buyback with is we position in a strong the as the towards results received. capital reflected be to

to Let me now Russia. turn

first of witnessing and what We The horrific tragedy we in months. unfolding human last elements is the feel have Ukraine foremost. been a the few over conflict human

The following our exposure been has we onshore or activities years ago. no itself the presence of the principally facilitation to in there also in investment client corporate We Ukraine and have dealing through in repercussions. bank. Barclays do Russia Russia, is have some with the market exit

we illustrated protect need sanction. control remain the though, second know risks, with around working the to As carefully. threats. on the with quarter that and exposure have it to we to which reduced cyber and slide, We group vigilant third We're this of significantly we the from include closely and managed world order to regulators through comply course governments

is strong well like performance now start decisions strategic is Turning highlights happening the briefly made result about by I'd some a markets notably talk of markets number has franchise begin what been the This quarter, the over Global since higher and benefiting Markets been franchise. from the with, have to as a including driven growth ongoing the externally income of To as of capital which to of of our XXXX. has first, global themselves. we of the of the marketplace, in factors, number time. the

experienced margins higher of since the volatility start that have have reflecting pandemic. the Our market improved, also COVID-XX we level the of

benefited product our exits and also some have of positioning areas competitor We in drivers business. the of business, which our many results equity in where have the But the investments, of our the made digitization prime from of investments the strategic including made have our client also financing from we offering platforms. of we our in including success

conditions. at diversify our mentioned especially improving the consistency our year-end, performance, taken of we've market changing during to I income steps also As streams,

We the our XX% up that on continued in financing XXXX, the approximately quarter growth first previous XX%, end in and the by fact, XXXX quarter. of have around income of And grown income XXXX. between

So, our growing in is global market capability. business and strength

quarter, not you to However, a monotonically line. straight will as growth its I previous be always in said the in

than will stronger performance others. quarters be in in some relative Our

our competitors. performance is in XXXX, in has we things. QX of been our strong performance For three competitors, instance, QX particularly by versus determined of relative our while underperformed XXXX, This

is in first the we engage. The businesses which

revenue. In with QX all the exposures. third is factors increased their of which second these our helped is interaction of clients opportunities strength particular in And XXXX, three The manage the clients. contributed to have we idiosyncratic

mix exposure we limited market. I've that relatively direct commodities business have outlined, Russia means As to to and our the already

to saw We January after have to have, Thanks rising Ukraine. period, invasion related managed were trading are this very which now the and able rising strength to manage us rates the clients responding QX we commencing exposures the many We In manage prices. dynamically. need over of and investments increasing Russia. help in delivering, debt increased they fluctuating also important summary, we continue our activity, we of to risks positioning when and and clients us equity with February, clients this have the our during a most. number currency help business years able franchise, of were rates also the exposures in large exposure do and made interest client few past serve to proactively to their to and

for to rate higher are starting businesses. interest rates, margins the rises net environment. interest the flow the leading now of to bank. some economic with from We're short yield both customer curve long through already our to to Turning see in and the Rising the base the the end consumer businesses benefits of --

to in U.S. at One growing remains However, the U.S. economies, both the compensating threat years, and the rising over the three UK that aspect next inflation. while continue unemployment they low level. are is and from face UK the the forecast

conditions clients. focused a inflation, and facing supply that many having far higher A are of harder year and We chain on particularly result are this impact the higher are great prices difficulties energy on very as our costs. from our customers

we three just support navigate support as continue will which those the bank I COVID to We end. wherever will economy to period priorities who us strategic can. wider We our with outlined crisis. remain the did year on we difficult at this And focused we through

The deliver financial next first, generation services. to consumer digitize

sustain investment wholesale to sustainable produce in capital Across third, a opportunities are transition to using and our and low have more carbon effective sixth our to this take capabilities position interact have UK bank. global are to we data payments allow manage consumer grow our effectively and quarter. clients the the we bank. our capturing payments we to growth corporate help as Within We're continuing Second, in growth to the digitally. as of building cost more to customers invest Barclays and our and infrastructure, enable risk, And transact digital seen out consumer businesses, in costs This in you and business. clients results we to continue ranked to and investing the Banking, invested us as markets, to advantage will our investment economy.

on, in more in growth touched you including the type in also already banking financing annuity I've We're global income corporate our businesses consistent As transaction targeting markets. corporate investment our Europe. in banking to investment diversify and offering and in also that have bank, sought

activities able be related climate the realize Finally, Barclays our to customers scale of our this to third transition want Helping zero to part support our lower in carbon strategy benefit become a is of and transition priority our clients their it, net recognize to and by and XXXX. as to emissions. we we towards financing their opportunity key to is bank businesses a finance

having are billion. reach facilitate £XXX over billion to to our of the target by facilitated financing We on already well way green XXXX, £XX

reduce announced important finance also targets strategy emissions. and progress, We our work including recently to our to updates our climate

reduction of policies and portfolio, targets tightened for thermal highest respect financing further set have XXXX to coal. the restrictive We our the sectors four in our with emitting

at on This was shareholders climate, commitment U.S., impact matter General Annual and our quarter. which part the a vote meeting we Manchester say week. our of in issuance As controls progress on of despite has our securities strategy, next to our shareholders In is disappointing strong and climate a give had we're conclusion, somehow. a over targets the offering in a

on double was We the of on an ability that a have I a performance RoTE greater of sustain equity XXXX. our to am our ongoing continue return than target to in maintained confident basis throughout And feature XXXX. that digit we in XX% tangible and group

the to £X over proceeding As And planned to do and be in I've quarter. towards we position you, we second expect the program. Anna. share will be with Thank our so a mentioned end to of now you pounds already buyback billion

morning, you, Thank everyone. Good Venkat.

over of At the to U.S. pretax conduct QX time, weeks our costs the results respect You'll of we about have seen few litigation announcement circa in and the issuance £X.X reflect securities ago. expected this. billion a in

£X.X costs for XXXX. Following have we these portion estimated of a subsequent discussions billion with regulators,

at have year QX, portfolio a we have charges the expecting relating start we customer also of Overall, to our these CCP, a QX the presentation. as focus I'll delivery in on time our to finance summary performance. our continue of on which weren't the of of results. highlight billion legacy through we I'll full with targets. We £X.X go partner effect remediation three

the with double costs, both litigation conduct ratio despite Barclays the impact returns. CETX. cost and and digit For quarter UK, the was XX.X%, for RoTE International the delivering income RoTE and Barclays of

of level costs the cost by in the L&C quarter. Our was ratio income XX%, elevated

spreads environments. we share a and results XX%, year-on-year with year-on-year were billion impact £X.X we all One to delivered spreads. costs at its of income variety are within Quarterly the billion CIB cost deliver within target at increase we diversification in just up above of before than operating factors, demonstrating Debt does with growth as of income increased of XX% capital macroeconomic markets. the announced the the the successful last was markets. in against of whilst income, X%, Investment revenues the that XXXX, market X.Xp contributing. example up attractive issuance constituent and activities, increased reflecting Income uncertainty comparisons of Equities However, was look focus our over reflects deal basis. income returns a the impairment of growth midpoint of are trend of performed there which light comfortably increased with our our grew benefit growth going the during Income the in increased the In outperforming balances down them our and year buyback various over capital cost level businesses the and billion, group volumes balances with the from our XX%, XX% we seasonal were and pleased well XX% and I advisory attractive strong. business our operating all delivered reflecting were of range. The in of CETX XX% to billion X multiple high demonstrating of and rising in affected by of ratio briefly ability strength discipline. individual cards, trends leverage up equity pipeline $X.X mix. evidencing But our derivatives. decline CIB XX%, up by lower year-on-year, few the on businesses a QX across U.S. PBT business and QX course, help the is in of of volumes banking was, full the healthy particularly year-on-year, expansion with CCP the development quarter businesses. equities and and was were development broadly reposition flat franchises includes I'm or print across markets although international our the income years. income parts. markets results. this three program down reflecting Markets revenues geopolitical of remains Overall, higher XX% in capitol FICC particular EPS. summarize Balances equity fees the This ended as were FICC financing quarters, activity offer prime XX%, QX. year-on-year, primary rates. by on XX% volatile bid clients the XX.X% a £X market,

we organically GAAP Given balance which due income and both acquisition the complete of and of XXXX, confident to the is growth are end QX. portfolio, of with delivering in this, the towards

with very this turnover an banking the transactions payments as from acquisition was up customer driven Banking, continued QX the private in where be reflected income growing a £X developing billion bank Personal year-on-year. predominantly The This strong into throughout was is XX% mortgages despite and X%, by Omicron-related January, of by increase with dampened income origination XX% income income XX% grew to both income U.K. in up effect In is XXXX, Barclays the which of further balance However, client investment will grow increased XXXX American Banking margins by net XX%. well year-on-year. like year-on-year, Personal business, continue in income contributing balances and effect, of due on year-on-year income. deposit XX% by rates balance the growth U.K. to Airlines growth. always franchise have to fell Cards mortgage market restrictions products. J-curve up Barclays Whilst rising the JetBlue. of competitive, the impact particularly overall portfolios in of

XX%, recovery were do repayment and balances low to Although in down fell be seasonality some spend balances by QX have from rates. U.K. growth point in elevated Card increased of We billion year-on-year lending for expect the balances levels spend generating because QX here. and £X.X with

in interest slower. balances remain is recovery Although earning expected to

environment the Loans have by environment growth and key of has in grown than our across themes a trading markets there Whilst some which business. structural activity across matched market been Finally, more course, challenging, the same to high rates, for and XX%. rising pull interest and the has franchises, economic hedge. tailwind fees from financing income out deposit group. of impact primary Increased corporate businesses. income year-on-year of And advances lastly, both from transactional across X%, CIB levels that driven but activity consumer is issuance margins product also by the has driven client across

usual rate increases slide the you'll coming our find appendix. We more in sensitivity and on in expect meaningful be to this effect quarters, to

course, metrics L&C. is, by We adjust this the going charges. at and now The quarter to exclude performance costs. not dominated costs, to statutory of manage cost L&C our our all we're performance Looking

actions billion portfolio billion allocation £X.X the increase relating of in in up CCP. and charged to legacy we and the over we positive L&C. issuance view the mainly quarter's costs, were the which by performance L&C our particularly structural so good exceptional, strong However, exercised CIB, £X.X partner trends to the as costs delivered focus to operational and do is exclude we is billion, flat billion QX costs. relating jaws. cost as These due of cost this to finance discipline were £X.X in Base broadly costs, on £X.X The

Looking set full the There base year been costs of dollar cost When and QX. for for for trajectory £X.X the expectation costs for guidance results. L&C year. now the at we further since our anticipate has strengthened we year, increase the in some didn't also inflation, has in billion

growth. seen our creation for have we crucial, all-in we for So to Efficiency continue year. cost outlook investment to discipline capacity and remains for and seek the increase with costs balance some in

and expected both the like of of for year inflation expenditure of L&C may We some and investment the are plans and and the impact programs. the FX reviewing postpone cost

full of at actions structural to year's billion. be cost plans, mentioned materially last would year, on we expect £X.X lower than As based current we total

for that will there I'm early are You all-in this but parts comfortable year, around appreciate consensus of year. this with market a the of billion number £XX moving in the currently published costs

in economic impairment rates a the and charge-offs migrations reported to of charge levels well billion Delinquency seeing relating X.X%. Whilst and recovery X are in arrears This £X.X net are expected to impairment. XX-day for U.S. on Stage as UK lending, in with cards unsecured levels. at stages the through We some Moving balances activity low cards X% pre-pandemic businesses up below the modest impairment are quarter. stable is year-on-year we up recovers. some

customer We pressure and identify very client in of signs spending patterns early carefully, are affordability. to tracking order from of including behavior

haven't considered we with indicators, and on any XX.X%. details coverage have seen specifically at Further XX.X% far, and appendix. worrying we ratios included broadly levels particular the cards coverage UK maintained risks cards in have U.S. So are but affordability at

our of operational lower Turning savings, partially costs increased costs X%, plus UK increased the while decreased The efficiency now to by offset reflecting business. investment performance spend. X%, income

timing the the was implement we be will feeling we cost before and XX.X%, benefit in The we're payback. and RoTE the QX expected while to the the business. full result, the about see started momentum in have We a BUK it actions reflected but given good

our on points lot of the is forward The the of principally variables. and end expectations XXX on initial rises, given for increasing There But bps. XXX to base the quarter guidance further X.XX% QX, the assumes year. rises. reaches still the was the basis That for of XXX XX NIM points, pass-through NIM rate the rate U.K. full the rises rate year expectation words UK. we're on few to a of effect up a by for the Finally, basis margin the reflecting

increased as with this, RoTE more result now Income go a to next up International. litigation was of billion. Barclays a beginning the two billion, into increased £X.X income £X.X business BI XX.X%. on of I'll delivered conduct slides, XX% CIB. Turning Despite while costs performance strong to the to detail the and XX% charges.

delivering release, the strong by £XX over the of the costs improved portion impairment a L&C, was X%, the XX%, relating net to generated RoTE provision operating RoTE reflecting impacted just of XX.X% issuance. total, view an In There for by the charge, Excluding quarter CIB costs positive jaws. increased QX reflecting points. the increased despite million which by list. around X percentage watch the the L&C Overall, of a

the Turning largely increase the U.S. in Cards flow-through in digits. There the expansion million. £XXX reflecting was across XX%, excluding for business, The the to preparations reflecting partnership. been international the The bank. Consumer delinquency now CCP private Payments. impairment of was the and due in to spend cards. have Income also GAAP RoTE including to X.X%. charge, the and was in payments marketing charge But close The double and of L&C in relating L&C charge million, investment £XXX increase increased costs to the was would to growth cards minus RoTE an

broadly included with £XX data UK for one-off the of million. office. in sale a usual tax was loss Costs rate quarter line £XX leaseback income Turning of the and the to run million the and million. from before centers now gain of The were head £XX

our XX%. and highly liquidity with liquidity and XXX% a quick of I Before liquid ratio summary and of loan-to-deposit capital, of to ratio a a remain well-funded We coverage funding. move

ended on of comfortably to target capital. at The range XX%. quarter within XX.X%, the Moving CETX XX% ratio to our

over effect effect we apportionment took the the XX.X%. Our flagged program ratio to regulatory January. two part the QX, the and on changes, the year-end to X issuance, pro of to a year year-end results, The These of reduced relating charge announced a forma headline the doesn't full buyback ratio. the basis affect on which elements

Underlying would and from the reserve headwind fair associated XX environment. However, bps points caused rate impact the relating QX. RWA and This there bps value XX QX RWA issuance hedges would further we X was to higher principally basis moves of deployment a circa are offset required. partially the was longer We to impact charges over when with as movements, XX bps expect over related the capital in from generation a expect by increased no profit. the by issuance strong accretion was the reverse from

Looking requirements. at our capital

hurdle ratio is that so mention. have Our There affecting couple balance factors a I of to the comfortable year over at the are of MDA headroom we current the XX% levels. want

the adds Firstly, XX our capital recent points basis disposal around in QX. ratio to of Absa shares

into funding both Secondly, XX IFRS in view. from valuation to the at an surplus we go expect as point pension position, triennial and of a September a

XX basis element may this surplus note, fund, however, from impacts the in from Given we on otherwise the other would XXXX, over XA Absa of forward would to the announcement £X.XX unwind pension for from the of structured which the bring around and a reduction risk QX, contributions, and capital requirement contributions PRA given could that Pillar 'XX billion point in recent the spread ratio. expect the of of reduce. been 'XX have I points view. our position triennial,

last proceeding would with March, but be launching to XX-F And concerning of to of have we we expect we whether towards results capital £X a we the generation a in view Going of organic the QX. year's question group. these of concluded To which we securities, in billion confident end February that forward, matters. U.S. following issuance our our discussions in announced the a of annual the be position the ongoing delaying over are until this we when. clear, be buyback, we of the on the impact isn't will execution of announced buyback. are buyback on a start of the In with We SEC be with XXth

XXXX. isn't capital just year. as saw matter annual It in As you a discussion distributions we've the previously, considers for regularly throughout the Board said

leverage X.X%. Finally, leverage, U.K. ratio and leverage was average spot was the our X%, on

So an sustainable to this XX.X% despite robust, conduct of basis and year reported charges. business on per recap, and statutory The our QX performance RoTE target on of we for generated delivering and litigation share and X.Xp going RoTE forward. earnings double-digit we're focused the is a

growth businesses, the We CIB rate in and franchise QX consumer rises balance an have an the is income good and tailwind from shape in after performance. expected excellent

early litigation Given it's the of continue £X.X conduct billion for QX the in seen ratios our comfortable with to for Reflecting inflation we the all-in review in uncertainty, strengthening But below plans in in of run coming macroeconomic maintained and around the 'XX, of have to the expect be we the year. coverage we're costs levels and dollar, overall, this over rate some increase have expectations impairment pre-pandemic for we'll year, £XX current the and for the consensus billion the expenditure and increase our outlook for but strong quarters. costs.

investing future yourself and to attractive confident delivering to returns ask QX two will Thank remains per get a get the strong of for your remain we capital you everyone. limit usual, charges, L&C whilst ratio take to questions. person that so we now we capital growth. also as would And to despite I shareholders around Our chance And you.

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

Your go line ahead. is please open, now

questions. two got I've

towards end the The one. is the a income the year. sort of £X we one first get it numbers by looks like just of billion, could pushing be time The random hedge

capital of these more it's help? out be to the done us it in billion anything much maybe as get out just second could much is I XX-S? to I'm maybe about? to the a to the be nine exactly in sorry, please, should buybacks. the one the bit The bit. is as of and And intention your Barclays not any scope pretty supplementary I good there's £ U.K. last weeks months, Thanks. last control at results. a these opposed question often rest just thinking the of a question Thanks your you the think later the needs wondering purely what is just that is how the may us a invite on full the broader to if. for that more given going? actually be whether can of they refiling scope happened have set which for organically, So that's just in coming topped over any when, of gun you But year the maybe up that there So But that in we year for of be just in what's couple detail should a to there's think this Is X months. you where would clarity buyback it been that jumping CIB, year, tell accretion

Jonathan. take Thanks, both will I Okay. those. of

and as in and UK, approximately no BB for need there regulators straightforward. the us we In of B the that's structural auditor our matter, agreed plc the it plc UK. hopefully, concluded the terms of refile that relation UK matter, in sits is either XX% so hedge have so a with income, quite And in UK or to to other the

and with refill refile we to discussions will the have we or BB that a plc, We are still in in ongoing B requirement possibly potentially concluded to plc. SEC relation

basis we fact, that. the is preparation. we've really that the it in with with discussions that actually relates would is restatement that of got decided, we're in FY buyback. the printed well we've and So directly And constructive reattribution 'XX, you're a have SEC. right, to we to concluded today we've progressed Barclays’ Jonathan, a our I And the what so it's say, until decision, commencement will that, What delay of

first an in feel we've And the right, across in business print quarter, if. with and So three we're positioned all that's rather momentum businesses. as there's pleased it you're the why like when as we have a really the capital and other we actually than

we distribution to expect but So our guided today the still consider would to continue We've for that year, capital. digits. of we continuing are we'll the accrete to double plans rest target

So quarter. that's delivered XX in about XXX basis from the points, and AP we've first

throughout the feel Board. with the year. just that discuss a it's for but does it matter we'll like that is momentum discuss the Typically, there, something year-end. So isn't the It we

You year. wouldn't believe saw I last different be year, this would it that and

you. helpful. That's Thank really

then. So X start, remedial to what the function, just to be fines action literally control do regards it's clear or not buyback been will to waiting potential we're Once XX-S see with have X these refiled, the or and is XX-S? SEC just going to the

Correct.

lot. a Thanks Great.

Our from from Joseph Dickerson question comes next Jefferies.

open, please Your line now is ahead. go

good morning. for Thank question. taking Hi, my you

driving the outcome mean card that Just on that's where on you provisioning. a think I UK guess risk we broadly, at stress in in unemployment this the rate And I level the indebtedness do enough in a taking look XX%, question What's of I household and test. you're that an given is at unsecured. adverse so almost forth. more if coverage are and like conservatism

on of XXXX. up. point, Is going shows March mean terms to two same nonessential So just same that terms on topics some you as a could the balances, turn own comment higher some the survey card travel is revolve up correct then data? areas And in some of your like assumption? such in particularly think XX% in this on of spending are area, as into of you picks you're of At thing the also Barclay unsecured. I frequency spend what seeing monthly

have a frequency Thanks, the will provisioning. revert data. I'll Venkat high that back sure on risk Joe. I'll and the Yes. I'm take on then view

abated about were I few the clearly be cautious to about were So appear cautious the and because the cautious variance, the somewhat. pressures. were are events would world year-end, We inflationary concern around that's how of into impact and also cautious that in and we inflation affordability about COVID what we changed concerns that things. mean tragic say the plays that at were the probably I and our at Omicron we the a affordability have Ukraine little. ongoing would impending were since when year-end, we a But we

So we've Joe, maintained we've that's been cautious, coverage. why and

think unemployment unemployment use it disposable in for right, the models But way are a we income. You're forecasts is low. shorthand I the as about

position that it we position? that's absolutely see low, So some even taken Venkat therefore, we've pressure out though And disposable will risk the income, and certain we unemployment is forecasts affordability have. about, the the what why on pressure are there. is monthly that

employment rentably of especially and ago and rate gets Joe, consequently later a and problem months this credit there problem. would are coming central four first Having than all pressure gets a right cost demand on affected today that or there from banks, said with three of not that, I inflation this is and rises as you’re all greater Obviously growth a this living conditions absolutely even year. affected chance supply of characterize otherwise benign. unsecured, was in that interest

affordable in risk We and in the the credit where a do where from it will creditor's our But have it UK we view. is lend appetite have risk of both Obviously, sense to we a unsecured, -- point U.S. to it's abundant makes and customers benign.

will with I seeing are to business, like are we UK I'd holidays, say. discretionary as nonessential rises issue. is see open that summer growth. So we very into And spending demand think in that the for the what much we you're balanced And also a spending anticipating or

is little a the UK that. behind in U.S. think the I

XX% I In Joe. up cards. in year look if see data, at to turnover payment our we payment are the up with payments versus XXXX, up actually we or And agree back year-on-year. volumes we up which purchases our are actually, UK is well. high-frequency is the look completely that credit we at spend as volumes when can volumes we pre-COVID, And business, can that, our last when look see purchase

there's So in recovery a definitely spending.

and which the seen U.S., UK repayment consumer COVID both is see accrete some to the through that liability balances continue of the large levels and we've reflection period. both actually, elevated We cards of in confidence the in probably

a we're is growth is So follow I which of growth. happening to expected essentially, growth a will that. what probably But see on lending little happen, what from and will dampening form lead we is seeing actually to bit indicator, that think balanced expect a here as probably purchases strong

Okay.

both. That’s Thank very clear. you

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

please ahead. Your line is now go open,

that. on CIB the and I mean, quarter a move CIB congratulations Venkat the I One one great morning. good CIB costs. doesn't mentioned, in the Hi, please. But in straight obviously, on and QX, had line. couple, a as on for a

support sort the the for I So environment XX% to CIB. the the of RoTE particularly sort group full market you baking what that of just in wondering year, for was for were

And CIB? for that. the linked environment So then market to

Or broader the thinking of Just that? you in you're is could just specifically cost Structured than business? then be terms a that more on wonder the has changed. I would area it based Products bit controls is in And if the little review, around -- second just how provide detail

how that, for So cost much million much is clarity provide you. could Thank that How inflation? much conduct? the to incremental really is FX? million is How helpful. How previous of you be guidance, around litigation much in expectations related? year So would is this £XXX performance if any to and relative that £XXX increase

costs. begin then will I Anna cover with CIB Rohith. and Thanks, the will

will continue kind in equities. it volatility, prevails, in the late anticipate that January don't February. in of prevailing Russian be, and let's there severe that now now, I be one, by probably shock invasion, to stress But abated. and right that, environment is up the characterized Ukraine think I like about credit hope to shock and the invasion created to say, both more of interest the rates, Ukraine that I'm the thinking has environment in Russian in that the will system market that obviously

forward, to about their -- that back an little of volatility. finance So clients want to market. characterized are the activity, of will their reported with broadly, it it want take some we were investors and higher investor help is, has it. clients bit will volatility to their to is the the dealing side. you profile and harbinger elements a assume been going come Obviously, deal continue which is has deal I as form adviser see Elon into profile, beginning Twitter and one But of improved And banking that Musk idiosyncratic to which and risk I they have by corporations to what how they an More reposition think views easy risk not thing. and portfolios activity acquisition a for think, think we

review a said As it when focused there on seems I and and externally, matter. incident. goes, itself relatively so what's to seriously, a take no as particular from extremely far I see And very a everything as far, which we've intentional misconduct, going on was much the seen is controls this I'm control this. disappointed be like extremely, culture that, risk management before, specific said I've very surprises culture Having and

need emphasize things, to And important is the will. it happens. and we it a But thing surprises. means other such turn to will do internally And Anna it when do looking most so we surprise cost. learning culture ensure we at no to it face we is I'll to don't if that that whatever from on And

statutory billion correct. that, We've Rohith. £XX this you're a that to be Yes, all-in I morning. clear guided Okay. Thanks, to want number. cost is

you what's So And I say, are movement would that. about changed here. that and we're L&C, predominantly the XXX, that's around is clearly disappointed seeing that really by

you Let understand me costs. about help I think how

I three is think different permanently it us working of across factors.

first of what to underpin invest we the The is growth the business.

the although FX. a in environment, though. the we've That bring is and were, seen tailwind managing how The What's impact certainly the from of they the pressures inflation remind given guidance you And programs three really which handsome And headwinds the be to all-in. the us P&L the have for overall. element you've that and as FX Typically, headwind the be cost, do levers, I'd second growth whilst a that different can than line. what around is that disciplined we are it's current from that higher might net those first is third through are around indeed quite is quarter. third do the we is in We harder bottom then business. again drive try we why is how drop efficiency to

operating all the XX%, got of X% revenue businesses. growth three we've got and So got jaws in positive of we whilst growth cost of we've

So to you and disciplined. us be should to continue expect thoughtful

I Could on that I into levers? the builds just Anna, pressure year. terms in inflationary follow you. next Thank go that, of up as presumably, mean, we

you that a pull be the or potential two? investment think the lever inflationary key talked that year to of I more manage you a deferral environment So about for Would spend.

Yes.

I think of phasing few a was such there There's levers. investments.

thing right a strategically we'll bit prioritize business. is But the the clearly, out important. That's Now that the more may push we for investment that decisions are we think marginal.

would investments driving 'XX clearly second in the example. deliver a that's to in efficiency of that From not XXXX. But our transformation, QX load of and -- start coming onwards, through. start. off The one UK for because simply going whole really that those XXXX That's harder. be timing you'd set of when We beyond expect

extent may We've And specialty take those the we at structural choose down of driving of third point really materially as obviously, then actions that And So and business them, the -- guided being take. is thing being we that are the about timing cost thoughtful hard. to in any the year-on-year. returns we just time. to

three those Rohith. pulling us of think So levers,

Okay, thanks very much.

from next from Our ahead. go Morgan comes Serrano Alvaro question Stanley. Please

morning. Good

think not are what outlook, still of drives later in And quarters, that that you the be? potentially consumer, more in why off consumer potentially the the this of and from has you What But yet. outcomes the what if confidence? the few all And squeeze? makes material the despite Just bills demand it's now U.K. from of a is set notes you confident still do going a do then? sort cost for to the And grow. uptick of a potential around taking terms utility in again, sort With the will on the year. range truck that, and they confident On inflation that you the thinking to think couple of of you questions. regulators. ask the are And have reinforce still in obviously well. comment sort sort balances on issue traveled Apart the do could the about? source obviously, bit the of think that have in that controls, if next is in relevant of you the refining, and sort the you to very welcome I'm review question off -- thinking of and pickup any you should Obviously, I'm me we and over balance thinking I'm there's bigger makes -- it to, is And be U.S., growth as particular, travel other more

Alvaro. Thanks,

the consumer on note Anna begin me structured cover will and let the then So side balances.

given think we're first broader financial this estimate offer cost of hedged. issue the point, itself our it, we've you. at related external we've best and Look, doing you We've primarily given the look, it's the The to controls, me early for I risks is estimate on review. to recession So which say. all, that this around our of which

many hitting on controlled the we other have done and things the seen, surprises. we've since to has said if we've be or As time previous XXXX, question, misconduct said, you no manner. And there in when hate no and as to have it's which whether many the spent of broadly. years. happen, avoided. what an lot look to been internally, an And industry will I look We, a risks isolated a I surprises would we I There -- course, appears of bank from culture answer on money there over I and are it improving the of is lot. risks intention been like But more last been that financial have this

good feel I Obviously, did this not not we happened. what have achieve perfection. we have would Otherwise, about accomplished. So

so far, this and is happen. these in done to and have after this my that expectation But hope as that you have a everything look to, So happened. has take one specific continue very But is things we is setting we I some will comfort of that a matter.

take cards the U.S. different. I'll in question and the on Alvaro, the balances all Okay. They are UK

draw me out. let that So

as that summer. see. we still that, to towards that in mix trajectory within and the right, So activity of into you're head purchase we expect travel for UK, is confident. tend we the we might the The reason because are And the

given then we will set COVID. we But And a to over that's acquire as to the cards back just we thoughtful thing a other UK, We into back COVID, into the time. in as as through We the so remember we were went in stepping the consumer environment. us feed time, is off. We're doing were balances. outlined way, into we risk that previously. risk cautious Venkat the went But towards that think since higher at market into I decision took were conservative.

around partly slide, purchasing effect it's market. back U.S. completely The of that it's into but the stepping we also So will different. behavior, is

They're by seeing U.S., So in £X.X purchase grow seen XX%. all we've year. That's balances activity billion We're too. heightened there, nearly the up organic. in the

XXXX stakes that the cards. we had coming organic of of So throughout us that borrowing of gives back the we confidence in and the on the inorganically, now acquisitions growth have the starting of already of of that terms then, strong And on. to end Actually, to got of course, at you're see that, then And see but coming end the U.S. we've QX is income now through on right contra in you will board what balances. gaps most again the feed

UK in think both. balances reasons, and for to I we're different we'd in constructive grow the So expect but the U.S. both

much. very you Thank

Chris from ahead. Autonomous. from comes question next Please Our Cant go

Good morning. problem. back on could the issuance for my just taking questions. I shelf And come If thank you

could or these you you've impacts you've more the you of an in have I a the size times. current release, potential to in any of Do Presumably, today's subset holders? several of on a ETN. owners instruments obligation liability you've taken. First, just previous note detail the here compensate to provision that done hands bit what in explain indicated instruments the change contingent the terms unquantifiable

indicated And that culture lost fine in have then I in is not that then quantify to a well-seasoned position you a appreciate issuer sort an in a of there secondly, you've the be you'll unintentional XXXX some But was think you do status U.S. your this regulatory risk paid basically when fine. issue. So potential risk error. here? a of It's risk?

Thank you're the the recent of factor Northeast regulator step, I better on be that So problem? a Could views how already for you. a lack term. the in guess over-issuance

that that we're at the notes Okay. And Thanks. But out £XX estimate it's focused this time within the is the called the way the financial just underlying the Chris. trade the the market, and on we've the billion, out. ETNs why treated of that and products than in I £X the say constructed rather statements billion the in it products that What them What can't there have that you're stage. are right, the would go the detail in reason on I structured ETNs. differences way the is our provision. we we calling way put we've this into best over issuance. way are in different

they clear. structured that's with in able be not liability take are notes, determine relatively you market, relates regulator, whereas performed to and differently it if the the to as we or would that? the discussions Venkat, therefore, with to further any ETNs, So the want And with what equity

Yes.

seek this, exactly Frank immediately keep to think we at but the one can't them to with that harmonious obviously, two all way, I the relationships in issue regulators. we them. is forecast importantly think times on to was three this In have framework our escalated Number broad to happen, what things escalated mind. I has and open to will been immediately

discussions, to We resolve and it. have constructively regular we're working

not, have We evidence any found internal misconduct, yet of misconduct. internal the external review in sign of any

regulators to I on law those but are right to have in hope appropriately, who resolve offering affected and And the remedies -- been constructively working the those all contributory. our is matter. the with is think the ultimate our this outcome matter

Thank you. Okay.

next Our from comes Suisse. question from Keenan Credit Omar

Your line is now open.

got for taking UK one and question. Thank question market hedge you NIM/structural Good one everybody. much question. very the morning, I've Barclays

markets. on just So

volatility. behave volatility that then the historically likely will we to is year. it of low the that of And probably as question XX I together manage my the just did businesses franchise last an But a to specific and from just directional I the I'm given bias you're equities versus to and wonder XX rate around we the I'm you to wondering quarter. head NIM in think second assumptions hikes is? of bps curve you digit the last the much the do 'XX just just Barclays improved if trying structural give likelihood franchises you bit around the just fair? expecting the on Bank sensitivity. equity like two to what to behind hedge. I related how to suffering the yield a the about and you're NIM duration rate those about think tempted question number that shape specifically think especially structural So us it's from is increase of year that to year how understand guidance. quite interest up And UK how what some think are the shorten for performing is the business the yields Is business given normalization rates. first dependent margins year, I that. on Could Barclays something trying they four be and levels, think color had on good understand be can understand just now yield you for on if to I of of about to see is your how hedge to FICC, England guidance? be relative picture talked I'm going rates And average, revised to whether thinking without in you'd environment base, how for

Omar. Thanks, Yes.

turn begin and it both to and I'll the answer. NIM Let me questions, with structural over to the Anna then hedge, the markets

and FICC let On say side, equities, market the both things. me two

higher is on First the FICC, trading there volatility on side.

things, last side are a derivative the but strong and greater keep On also since year. single fixed for has the revenues, call income think way equity stable been to increased the us very franchise, rates now and income. mind, much both mean you and would how in At increased been volatility, is which as in it's indices. tends with think been both of a little since we in syncretic year, more more one the think to it based year, I one cash we I'd the derivatives slightly movements, broad-based the as is in volatility start what and there volatility was and become market are it's strong them. for And equity, about franchise And financing they progress period a been has it different thing volatility. from have last remember, the you much benefit call fee-like as equity but subject stock to It stock I like higher I interest to financing making have well,

XXXX, past in top out are two, quarter top XX% with income it but rate been period has spreads the of first low a a with in very wall So sort of then but growth revenues low, we being starting widening being very X-year even up participant has a ending XX% if wall slides prime year. called the spreads number being years area, the not with obviously, very equity financing, and growth been it's which in market, we in absolute of our of low, pick rates for this and a and three, rates. low, in higher credit to over interest fixed leading growth And spread

we that this, anticipate income. like franchise is in. So invest of would fixed And to and in quite I independent revenues. income of been continue like of is But is combination across think fee revenue markets continues have financing equity in, it market that really some and with we something I it strong

Omar. question, the for Thanks

key would say to UK that of that. the And year exit assumptions I for a guidance, guided bps we've and year. are within And The is X.XX%. be the the with expect we we so Barclays rate assumption XXX today there that NIM assuming XXX base we between

what me Let think leave I you all. they'll tell about it

that I little a seen rates of expect pass-through base as rise. due would we've increase And past to cost-through. first continue clearly The today, low rate to would I say, move. levels or is

UK in pass-through Of I this increase general, expect pathway course, been on call from time. would to But not here. somewhat in it's to difficult some the specifics. for quite We've rates

dampener, back are that is terms. we're to with come on then The time, obviously, the our in what NIM, a competitive. build The seeing The adds growth, NIM. mortgage in business what like increase which effect impact more bit little a but in will the that our structural terms there's that very detail. bit in will in terms one to second income is the happens mix and obviously probably hedge, cards to And the hedge over whilst of just and obviously I'll of positive mortgage really a dampening on But wildcard structural pleased margins. which margins a thing the cash effect is And is obviously, and balances. definitely have are a we more NII

I'll have the exit difficult say that QX The more on really Whilst X.XX% to call. thing rate, just base on. about using before I rises rates calling a the escalated on pass-through that little XXXX, and So don't both is an we're bit QX assuming go timing. we of obviously, much structural to as that one go are effect hedges. we're in And because a we

from we're higher the typically, And we Just rates hedge. hedge rates. extent, coming is it quantum that interest the And UK an structural about around, hedge doing reflect generally across in banking there products. expression is NIM NIM we're in of that to how structural to volatility deposits. extending feel to move we dampen and our what the to the indeed It's not when

We anything doing else. are not

point. are we terms in So intending this at of duration a not caterpillar. It's it to change

it XXX month. So will of every reprice

of together, up we're So UK. all because income of just things to those to reiterate, of benefit on are things the though, guiding taking NIM the all net those overall

If follow-up ask all. question. just That's I could a quick

as of signal will a sensitivity you've we the rate that take type? rate to guidance be the kept million next So for XXX Should [indiscernible]. your that

just corporate making et not we're it's more that. where timing are would general because be any to in example. for it's because will difficult decisions it not disclosure, It particular hike, across be about the That's specific and of you different of Omar. UK, dynamic them, do a That's It's quite the -- we depends on different But cetera. businesses. also the versus curve, so multiple rate

So don't an sensitivity. think a expression of improvement, it as it's of

you. Thank Okay.

comes from Firth Ed go Our ahead. next Please question from KBW.

line now open. Your is

Yes. two please. Good morning, I everybody. just questions, had

actually of Page the conservatism your computations. you've X% expected for this growing than what I The got first base mean consensus got at we're that X.X% almost sort GDP In say in the about now you use cable what outlook. I at probability you a hear and And do that for one for you year. if that, But low loss even your case, this credit. And I next. year look better and was variables X.X% if to about that, caution UK that. is got next you've look XX, yes, below on probability and you've wait on year again really your for

to me you aggressive been loss expected seems So assumptions. you've and quite

of that right? if your more be, expected your you consensus put is So question growth my expectations loss to question. computation? I view sort be first in my that first how that of guess I you as the a of affect would would am sensitivity, might expected were of So reading What --

one Venkat, for guess second a had strategy a I you've broader of was really question, I place. really The Venkat. one bit now Because mean in time

shoulders And look CIB and of And of look XX%, you're expectations this it's just with quarter, again frustrations wanders smashed and you at mean, Barclays I what was again. is again ahead business, the thinking. if at shrugs your market reaction off. I XX% everybody everybody have again, their One today, yet you the

talked past underlying start it looking and about frustrating immensely who some ignored. of don't in stable the these in I you for think? I off, are on for be said for it this? of Do visibility must can you about I how there to earnings split you've you can that people because get give basically I fresh, you it everybody at floating And business. and you the mean, of anything at can giving performance earnings that are do at us you is works value just more you the As CEO looking it there up sort think

hand to question the take first over then I'll and Ed. Thanks, I'll Venkat.

of quarter. macroeconomic in of changed So the metrics coverage matters We that. back really we models, what that's our model unemployment that on the think way X that those you in clearly models. the to much that that the a significant. seeing. I your sits. update post the them end back you if ratios. where QX, reason of they the can is That's because which rate. they see rolled feeding consensus big question are changed And is and coverage specific, the of one side. around you're in actually, But relates disclosure don't relatively update the our variables, our elevated and from for here the conservative The really, say towards on our in didn't quarter ECL not quarter actually the or Stage we adjustment, towards didn't ratios anything, that the we why end if that's we The see driver we and the P&A the are the unemployment pacing are And conservatism And that are are into at look that forward

So yes, the variables are macroeconomic important.

others. our of post say part are stock our of I non-defaulted our are significant -- more unemployment would important And model one them really sorry, watch. the than levels. But should Some PMAs that is a you of

So we're pretty comfortable with it. Venkat?

follow-up probability as we quick mean, weighting I be a to got cautious XX% the on we just year? to and downside. an XX% I a you bit more mean can that expect should for upside a weighting have that? I Sorry, one through still go only a

weighting we Ed, mathematically you of more a divergence here, this bit outside with the scenarios. time So want. the it's is from spend output. can the But derived modeled a you essentially, between probability on actually if and

part the simple terms. are the they -- further So the the more lower probability in

So the can pathways, it's bit we not actually a detail. that It's output do active but decision in more make. an of a we mathematical

Yes, that’ll Thank be you. great.

question, for Ed. second Thanks the

an in have for made diversification the fact that have to bank. first I XXXX should of XXXX 'XX at on One which that is we And of CIB, is good if event first I CIB, had and argument the were in be all, you CIB. true. of the we the was was would the questions There a On what shown and source have that, X about take Barclays it? was, any to early the second would perspective going 'XX back. important like a the we question I think think on say X-year two CIB, if should was we bank So we through it and

equally, a CIB of the wanted part we But of, that So of what table. or because business question is the I I off that, about. to Barclays about we be this what should think banking sort think, very have of that much corollary is

you are question kind as second the question your reasonably off at own that were evidence performance. that at good showing any that, words CIB, are should we -- The actually if a had good take our it? if you think because be we would you it. describing moving table I I think would be I

you're second just So think delayed the is, is, a into for it question satisfaction making the in is I it the price. bit. earnings asking getting And to well, credit have patient And but But quarter salutary buybacks effect strategy be then question the share evidence consistency. broader don't of well, of that me beyond you human a the the seem question return. has more the being. Well, of is clearly, that, and this really conversion capital a

us point will a earnings, objective the producing diversification, just keep good and then to return our keep try shareholders, So should to to itself. find try I of strategic of from is of decent think view what to capital from a and to keep with expect story you the

just with sort got I could hide And you I which just must some business. there idea I if what mean, one year. what call be recurring Sorry, don't to guess be of honest, is going I'll absolutely I be back that is of elements this I've CIB core mean, I probably that. come business, the no question. revenue

it there I of very in we which So way. that investors difficult make value make highlight going we business, to or must within this not? be could underlying any do does the Is some guess meaningful know -- that to a sort perhaps revenue, to But surely what for it something which in manner. it's there year, put in

there I so Yes, Yes. think is.

without So let for do a it me way giving in you numbers. qualitative try you to

revenues. capital continue and that markets, That capital is a that been again, grow. share, issuance we've share think with around CIB from balances but lot against from bit on a market today, amount, market prime an in and/or to First business. and see earlier stock they the more fixed part bit exited this Can borrow that of that from equity financing markets, rising because people to because should of we because that they franchise are first from condition. 'XX, three years expect anticipate all, I prime you who trading, And happened I equity. about the we heard with And XX%, we've which 'XX interest income need And I increasing the share expect certain and business is of in the our in borrow have seeing need associated and also that are repeatable. do is stronger to either capital because an business, quarter-to-quarter, us. come this hope the bonds, people because a on debt the market, has that portfolios growing, is we situations, we than invested against make where quarter investors a endure, with will I had us. part a very to to and to year and This you both markets certain fixed rebalanced, rebalance shown year. be us is grown strong means that which volatility been and in of size getting financing, in of to and base that simply to ones special it's positions movements financing of people I world of equity you've market volatility because keep the have No. businesses portfolios this of of now? you that then to people a need because that relatively call take is us day we've Wall some competitors financing historically markets, balances what trade that another rebalance they broadly to equity always rates the that capital to their balances and people debt like there's in where equity adjustments which higher think higher the what portfolios of And will We've higher and income and that, now. a been those in of XX% and we have inside our moved you Street we gain expect about again, We're which top it. spoke very they're there think taking get able be what have expect level equity volatility. that like When talk about element and normally we their -- the the have new comes is their want to relationships Expect they've or like because and -- every year. or tell you and one portfolios tremendously business, some who've of

Sure.

you. helpful. Okay, very that’s Thank

Okay, thank you.

question the you. Thank Next please. And for will today. question, be last the next one

Goldman final go from ahead, comes we Sachs. today for Please The time from Martin Martin. have Leitgeb question

on strong Thank my the today. And question. good morning. also print Yes, taking you for congratulations

also of see comment actually UK to the anything in around quickly of opportunities with cards? on just cards, and pushing market banks the one line you Or like prime two out card in cards of just out there in seems called could for on with share there's share CIB. And market just call landscape Would Or follow-up see you that financing. into ago market there back of year and could secondly, been if though UK gains are reversing you about to your I about I for an terms was in recovery of I out regain on I be that European there even was one a about some the further gains? XX%? that roughly shall wondering share you progression year. was just Barclays the the UK terms of share in share card balances evolving. lower, the if see still in performance, comment wondering revenue specifically credit content market you Are you the a kind some wondering competitive CIB. forward. the we intention Just of how think market how share ambitions? would the have just back balances some to wondering questions, the ambition was UK last the dropping going keeps it And of regain some on lean

first the to Venkat. then Martin. take you, I'll Thank pass and Okay.

cards UK your specific and is So about Barclays’ performance. question

first the say that is I else, exactly cards in thing think and to are actually we same. the nowhere

are our We part a targeting philosophy. of is specific That share. not market not

from It Our stepped from in, performance, we join we of we so borrow those not start And I reflects think, back that pandemic. fact an to the the us, beginning did customers and immediate and to step takes step a Brexit, is while back actually risk on. response back the the to stepped post we as one. risk, for therefore, back at

over that market, hope we'll think stepping it's balances a not from there So see would I instantaneous, delay. that is but into time back we grow

that's think I seeing we're what now.

doing would I business, reshape time think say seeing the is you're it thing our will of other just that over I and intention is evidence that we that us now.

that products got we've on not spend, that ensuring lend. are focused So

pleased Too numbers, that's in product Avios with early our specific about talk how February. launched to we're going. So but

future the cards of So isn't cards I a think replica reasons. the of Venkat? for a past business of few business the the to going be quite

than are share and say them. extremely and The and continue the capabilities seriously. And I'll They make And you two many client to for thanks to services investments second are area, bigger a take what and in happened of the banks. market ways. if sort strong certain in with certain which them Yes. Martin, clients, deal with provide, facilitation. gains of We your you you we our have sustainably, respect is Look, the has your come question. banks, is you them more particular -- all and the then competitors strategy products which One you exit with continuity competitors, how the professional us. is

on a have We which to on and of in the a our Asia, with years is in remained building a and Hong this Singapore investment, do. coming number consistent, relatively back and Kong, basis. us. India, and journey strategy. and been centers really deal offshore things has consistent slowly approach concentrated We for in -- to that are well. to in it the we out There trading footprint U.S. keep them Europe based consistent enough in What we things serving customers And product China do. try try an are enough with offer they which we don't we which do we There do, to to

that to So the we get I'm very to team in continue consistency leading, investments we share. to have make strategy, customers market believe, hopeful which that us, I coming we'll with the and and that back the

much. very you Thank

We’ll few care. everybody. the meantime, to over weeks. you, next many seeing thank Okay, you forward look take In the of

now has This presentation ended.