Financial Data and Key Metrics Changes - The return on tangible equity (RoTE) for 2023 was 10.6%, in line with the target of above 10% [2][5] - Group profit before tax was £7.5 billion, down 3% year-on-year, while total income increased by £0.7 billion [6] - The cost-to-income ratio was 63%, consistent with guidance for the low 60s [2][10] - Tangible book value per share increased by £0.36 year-on-year to £0.331, and the CET1 ratio was 13.8%, at the top end of the target range [3][23] Business Line Data and Key Metrics Changes - Barclays UK income was up 5%, driven by net interest income growth from rate increases, despite lower card income [6][15] - Consumer cards and payments income grew 18%, supported by higher margins and balanced growth in US cards and the Private Bank [7][19] - Corporate and Investment Bank income decreased by 4%, impacted by lower market volatility and a record low banking wallet [7][20] Market Data and Key Metrics Changes - Net interest income across the bank grew by £2.1 billion or 20% year-on-year, with a group net interest margin (NIM) increase to 3.98% [7][8] - The structural hedge generated £3.6 billion in gross hedge income in 2023, up from £2.2 billion in the prior year [8][9] - The US cards portfolio showed elevated loan loss rates, with a full-year charge of £1.5 billion in consumer cards and payments [12][13] Company Strategy and Development Direction - The company aims to improve RoTE from 9% in 2023 to above 12% by 2026 and plans to distribute at least £10 billion to shareholders between 2024 and 2026 [52][53] - The strategy includes simplifying the business structure and enhancing operational performance while maintaining a strong capital position [46][47] - The company is focused on growing its UK presence and expanding its role in the US market, particularly in unsecured lending [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial targets and highlighted the importance of operational excellence to preserve reputation and protect shareholder interests [50][51] - The outlook for 2024 includes expectations for a reduction in deposits and mortgages, with a gradual return to growth anticipated in the second half of the year [17][39] - Management acknowledged the challenges in the market environment but emphasized reasonable assumptions for revenue growth [28][29] Other Important Information - The company announced a £1 billion share buyback, which will reduce the CET1 ratio to 13.5% [23] - Structural cost actions in Q4 amounted to £927 million, aimed at improving efficiency and productivity [11] - The company is in advanced discussions to sell its German consumer business and Italian mortgage book, completing its exit from European retail outside the UK [54] Q&A Session Summary Question: Market performance in Q4 and guidance for 2024 - Management indicated that assumptions for the market environment in 2024 are reasonable, with no expected increase in the market wallet [28] Question: Tesco acquisition versus share buyback - The Tesco acquisition is seen as a way to accelerate growth in unsecured lending, balancing shareholder returns with investments [29] Question: UK NIM volatility - Management expects the volatility in the UK NIM to smooth out over 2024, with no significant reversals anticipated [31] Question: UK mortgages and US cards capital requirements - The UK mortgage market is experiencing negative net trends due to refinancing activity, while the US cards business is undergoing an IRB conversion, which was anticipated [34][35] Question: Deposit dynamics in Q4 - The stabilization of deposits in Q4 was attributed to slower customer migration and stabilization in pricing, leading to a better-than-expected NIM [37] Question: Equities business performance - The equities business performed adequately in Q4, with no specific issues highlighted [41] Question: Non-NII in UK and corporate revenues in CIB - Non-NII in the UK was impacted by the transfer of the UK Wealth business, while corporate lending income remains stable despite some costs [44]

Key TakeawaysBarclays announced a shake-up to its operations and announced billions in cost cuts, as well as stock buybacks.The bank will now be divided into five divisions, including a U.S. consumer bank unit.Barclays plans to reduce expenses by $2.53 billion and repurchase at least $12.66 billion in shares by 2026.American Depositary Receipts (ADRs) of Barclays Plc (BCS) soared on Tuesday as the U.K.-based bank announced a major restructuring as well as plans to slash costs and return billions to sharehol ...

Barclays (BCS) reported a fourth-quarter 2023 adjusted net income attributable to ordinary equity holders of £628 million ($779.7 million). This excluded structural cost actions pre-tax charges of £927 million.Shares of the company jumped almost 7.4% in pre-market trading following the earnings release as investors cheered the business structural overhaul plan and medium-term financial targets.The company recorded lower revenues, along with a rise in credit impairment charges. Operating expenses increased i ...

FY 2023 Results Announcement Delivering against guidance Barclays FY 2023 Results 2 February 2024 Achieved guidance Strong balance sheet Enabled increased across metrics and earnings shareholder distributions 10.6%1 13.8% 8.0p RoTE (target: >10%) CET1 ratio FY23 dividend per share (target: 13-14%) (up 0.75p YoY) 63%1 331p £1.75bn CIR (guidance: low 60s%) ...

Large UK lenders have been criticized once again for offering low rates on their easy access savings accounts. According to Moneyfacts, Barclays PLC, HSBC Holdings PLC, Lloyds Banking Group PLC, NatWest Group PLC, and Banco Santander all offer gross rates of below 2% on savings worth £10,000 in flexible accounts. “Despite the continued focus on passing on interest rates to savers, the big five banks are still yet to make their easy access rates more competitive in relation to the rest of the market,” Moneyf ...

Barclays on Tuesday outlined plans to restructure its business with a view to cutting its costs by £2 billion over the next two years and boosting its returns to shareholders, with a view to paying out £10 billion in share buybacks and dividends between now and 2026.  In a bid to lift its sliding share price, the British bank’s plans will see it restructure itself into five new segments over the next three years – including a U.K. bank, a U.S. consumer bank, a U.K corporate bank, an investment bank, and a p ...

New cost-cutting measures at Barclays PLC (LSE:BARC), aimed at delivering annual savings of £2bn, could result in 17,000 job losses. Analysts at research house Third Bridge estimate a 20% reduction in headcount would be required to achieve the figure being touted. The high street lender currently employs around 85,000 people. Third Bridge believes the cull "would not impact day-to-day operations", and adds: "Previous cost reduction programmes have not been executed effectively, in some part due to its polit ...

Barclays PLC (LSE:BARC) has unveiled a corporate overhaul, £2bn of cost cuts and a £10bn capital return as it looks to enliven the company's sluggish operational and financial performance as part of a new three-year plan. According to chief executive CS Venkatakrishnan, the initiatives are also aimed at "driving higher returns, and predictable, attractive shareholder distributions". In its results statement, Barclays wants to reduce its cost-to-income ratio from its current 63% to the 'high 50s', which mean ...

LONDON - Nov. 5, 2020: Fog shrouds the Canary Wharf business district including global financial institutions Citigroup Inc., State Street Corp., Barclays Plc, HSBC Holdings Plc and the commercial office block No. 1 Canada Square.LONDON — Barclays on Tuesday reported a fourth-quarter net loss of £111 million ($139.8 million) as the British lender announced an extensive strategic overhaul.Analysts polled by Reuters had expected net profit attributable to shareholders of £60.95 million for the quarter, accord ...

Financial Performance - Barclays reported a profit before tax of £7.1 billion for the year ended December 31, 2023, representing a 12% increase compared to £6.3 billion in 2022[14]. - The return on average allocated equity was 12.5% for 2023, up from 11.8% in the previous year, indicating improved profitability[17]. - Operating expenses excluding litigation and conduct charges were £12.5 billion, a decrease of 5% from £13.2 billion in 2022[18]. - The cost: income ratio improved to 62% in 2023, down from 65% in 2022, reflecting better operational efficiency[22]. - Barclays reported a profit before tax (PBT) of £2.9 billion for the UK segment, with a return on equity (RoE) of 14.0% and a return on tangible equity (RoTE) of 19.2%[54]. - Barclays UK reported a profit before tax of £2.6 billion in 2022, with a return on equity of 14.0%[58]. - Income for the Consumer, Cards and Payments division was £4.5 billion in 2022, with a return on equity of 8.4%[82]. - The Corporate and Investment Bank reported an income of £13.4 billion in 2022, with a return on equity of 10.3%[64]. Strategic Initiatives - Barclays plans to expand its digital banking services, targeting a 20% increase in user engagement by the end of 2024[19]. - The company anticipates a growth rate of 3-5% in its core banking segments for 2024, driven by increased demand for financial services[19]. - Barclays is investing £1 billion in technology and innovation over the next three years to enhance customer experience and operational capabilities[19]. - Barclays has set a target to achieve a return on tangible equity of 14% by 2026, supported by strategic cost management and revenue growth initiatives[19]. - The company is actively pursuing strategic acquisitions to enhance its market position, with a focus on fintech and digital solutions[19]. - Barclays aims to improve performance across its five focused businesses, enhancing customer experience and operational efficiency[43]. - The company is targeting a group net interest income of approximately £10.7 billion, excluding Barclays Investment Bank and Head Office[45]. Sustainability and Climate Goals - The company facilitated $67.8 billion in sustainable and transition financing in 2023, demonstrating strong momentum towards its $1 trillion target by 2030[129][140]. - The company has committed to invest up to £500 million of its own capital by the end of 2027, with £138 million already invested in 21 innovative companies[141]. - The company achieved a 93% reduction in Scope 1 and 2 market-based emissions, meeting its 90% reduction target[124]. - Barclays achieved a 100% renewable electricity sourcing for its global real estate portfolio by the end of 2023, ahead of the 2025 target[151]. - The bank aims for a 40% reduction in absolute CO2e emissions by 2030, achieving a 44% reduction against a 2020 baseline of 75.4 MtCO2e[151]. - Barclays has set a target to reduce operational emissions by 80% and procure 90% renewable energy by 2025[158]. - The bank's climate strategy includes a commitment to be a net zero bank by 2050, with updated financing restrictions for carbon-intensive sectors[158]. - Barclays has exceeded its target to facilitate £150 billion of social, environmental, and sustainable financing by 2025[158]. Diversity and Inclusion - At the end of 2023, 5.1% of UK and 21% of US colleagues were from underrepresented ethnicities, surpassing previous ambitions two years early[102]. - The company aims for a further 12.5% increase in underrepresented ethnicities in the UK and 5% in the US by the end of 2025[102]. - Colleague engagement improved by 2 percentage points to 86% in 2023, with positive responses across all engagement metrics[113]. - The graduate intake in 2023 was over 36% female, supporting the company's diversity and inclusion agenda[101]. - The company aims for 33% representation of women in senior leadership roles by the end of 2025, with current representation at 30%[103]. Customer Experience and Engagement - The Net Promoter Score (NPS) for Barclays UK improved to +17 in 2023, indicating enhanced customer satisfaction[92]. - The Consumer Bank Europe achieved a 206% year-on-year growth in its deposit book, reflecting a strong focus on enhancing customer experience[84]. - Barclays UK supported over 47,000 new start-up or scale-up customers in 2023, including Climate Tech start-ups[59]. - The company launched a new Green Barclayloan for Business, offering no arrangement fees for lending above £25,000 on green assets[60]. - Barclays UK provided options to help over 103,000 first-time buyers with their mortgages in 2023[57]. - Barclays UK expanded its network with 159 new sites, totaling 351 sites in 2023[57]. Operational Efficiency - The company is focused on simplifying decision-making and upgrading legacy technology to enhance operational controls[47]. - The corporate bank has achieved over 10% growth in clients compared to 2021, supported by an 18-year average client relationship[51]. - Barclays aims to expand its share in lending and modernize systems to deliver more functionality to clients[51]. - The average energy use intensity across corporate offices improved to 228 kWh/m²/year, a 27% reduction against the 2018 baseline[205]. - The total GHG emissions (location-based) for 2023 were reported at 735.8 thousand tonnes CO2e, down from 815.8 thousand tonnes in 2022[211].