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].

Financial Performance - Group FY23 RoTE of 10.6% and EPS of 32.4p, excluding £0.9bn of Q423 structural cost actions[12] - Group statutory RoTE was 9.0% (2022: 10.4%) with profit before tax of £6.6bn (2022: £7.0bn), including £0.9bn of structural cost actions in Q423[14] - Group RoTE was 5.1% in Q423, down from 8.9% in Q422, with profit before tax of £1.0bn compared to £1.3bn in Q422[16] - Attributable profit decreased to £4,274m, with a return on tangible equity (RoTE) of 9.0% and earnings per share (EPS) of 27.7p[23] - Profit before tax for Q423 was £110 million, significantly lower than £1,885 million in Q323[53] - Profit before tax for Q423 was £568 million, compared to £765 million in Q323[55] - Profit after tax decreased to £5.3 billion (December 2022: £5.9 billion)[180] - Profit after tax for 2023 was £5,259m, a decrease of 11.3% compared to £5,928m in 2022[188] - Total comprehensive income for 2023 was £6,315m, a significant increase from £1,567m in 2022[188] - Basic earnings per ordinary share decreased to 27.7p in 2023 from 30.8p in 2022[192] Capital Distribution and Shareholder Returns - Total capital distributions of £3.0bn announced for 2023, up c.37% on 2022, including a total dividend of 8.0p and share buybacks of £1.75bn[12] - Barclays plans to return at least £10bn of capital to shareholders between 2024 and 2026 through dividends and share buybacks[18] - Share buybacks totaled £1.25bn, with £1.2bn in ordinary share dividends paid and foreseen[169] - The company plans to initiate a share buyback of up to £1.0bn in the first quarter of 2024[194] - Total dividends paid in 2023 were £1,210m, an increase of 17.7% from £1,028m in 2022[194] Net Interest Income and Margins - Group net interest income (NII) of £12.7bn, up 20% year-on-year, with Barclays UK NII of £6.4bn, up 9% year-on-year, delivering a Barclays UK net interest margin (NIM) of 3.13%[12] - Barclays UK net interest income increased 9% to £6,431m, with a NIM of 3.13% (2022: 2.86%)[29][36] - Barclays Group net interest income increased to £12,709m in 2023, up from £10,572m in 2022, driven by higher interest rates and structural hedge income[68] - Barclays Group net interest margin (NIM) rose by 44bps to 3.98% in 2023, compared to 3.54% in 2022, supported by higher balances in Consumer, Cards and Payments (CC&P) and the Gap Inc. portfolio acquisition[69] - Consumer, Cards and Payments net interest income grew to £3,646m in 2023, up from £2,979m in 2022, with a net interest margin of 8.50%, compared to 7.60% in 2022[68] - Corporate and Investment Bank net interest income rose to £1,991m in 2023, up from £1,796m in 2022, with a net interest margin of 3.65%, compared to 3.21% in 2022[68] - Barclays International net interest income increased to £5,637m in 2023, up from £4,775m in 2022, with a net interest margin of 5.78%, compared to 5.02% in 2022[68] Credit Impairment and Loan Losses - Group FY23 loan loss rate (LLR) of 46bps[12] - Credit impairment charges increased to £1.9bn in 2023, up from £1.2bn in 2022, with an LLR of 46bps compared to 30bps in 2022[15] - Barclays UK credit impairment charges remained stable at £0.3bn in 2023, with an LLR of 14bps, consistent with low delinquencies in UK cards and a high-quality mortgage lending portfolio[15] - CC&P credit impairment charges rose to £1.5bn in 2023 from £0.8bn in 2022, with an LLR of 354bps, driven by higher delinquencies in US cards[15] - Credit impairment charges rose to £1,881m, driven by higher delinquencies in US cards, with a total coverage ratio remaining strong at 1.4%[23] - Loan loss rate for Q423 was 54 bps, compared to 42 bps in Q323[53] - The annualised loan loss rate is 46 basis points (bps) after applying the total impairment charge of £1,881 million[80] - Retail credit cards in the UK had a gross exposure of £10,420 million, with an impairment allowance of £710 million[80] - Corporate loans in the UK had a gross exposure of £64,622 million, with an impairment allowance of £751 million[80] - Total Rest of the World loans and advances at amortised cost amounted to £98,142 million, with an impairment allowance of £3,711 million[80] - Retail credit cards in the Rest of the World had a gross exposure of £27,287 million, with an impairment allowance of £2,776 million[80] Cost Management and Efficiency - Group cost: income ratio of 63% excluding Q423 structural cost actions[12] - Targeting Group cost: income ratio of c.63% in 2024 and high 50s in percentage terms in 2026, with total Group operating expenses of c.£17.0bn in 2026[18] - Group total operating expenses increased to £16,931m, with structural cost actions of £927m in Q423 and total structural cost actions for FY23 reaching £1,046m[23] - Cost: income ratio for Q423 was 88%, up from 63% in Q323[53] - Total staff costs for Barclays Group increased to £10,017m in 2023, up from £9,252m in 2022, with group compensation costs as a percentage of total income at 34.4%[72] Capital and Liquidity Ratios - CET1 ratio of 13.8% and tangible net asset value (TNAV) per share of 331p[12] - CET1 ratio stood at 13.8% in 2023, slightly down from 13.9% in 2022, with risk-weighted assets (RWAs) of £342.7bn[15] - CET1 ratio decreased to 13.8%, with RWAs increasing by £6.2bn to £342.7bn, partially offset by a £0.4bn increase in CET1 capital[24] - Liquidity pool decreased to £298.1bn, with the average Liquidity Coverage Ratio (LCR) increasing to 161%, representing a surplus of £117.7bn[25] - Total deposits remained stable at £538.8bn, with the average Net Stable Funding Ratio (NSFR) at 138%, representing a surplus of £167.1bn[26] - Liquidity Coverage Ratio (LCR) increased to 161% in December 2023 from 156% in December 2022, with eligible liquid assets exceeding 100% of net stress outflows[145][147] - Net Stable Funding Ratio (NSFR) was 138% as of December 2023, with a surplus above requirements of £167bn[148][149] - Group liquidity pool decreased to £298bn in December 2023 from £318bn in December 2022, driven by reductions in wholesale funding and deposits[152] Business Segment Performance - Barclays UK income increased 5% to £7.6bn, driven by NII growth from higher rates, including higher structural hedge income[14] - Corporate and Investment Bank (CIB) income decreased 4% to £12.6bn, driven by lower client activity in both Global Markets and Investment Banking[14] - Consumer Cards and Payments (CC&P) income increased 18% to £5.3bn reflecting higher balances in US cards and favourability from higher rates and client balance growth in Private Bank[14] - Barclays UK's total income increased 5% to £7,587m, driven by higher interest rates and structural hedge benefits[29][36] - Barclays UK's Personal Banking income increased 4% to £4,729m, driven by higher interest rates[36] - Barclays UK's Business Banking income increased 16% to £1,894m, driven by higher interest rates[36] - Barclays International's net interest income increased by 26% to £6,197m (December 2022: £4,927m), while net trading income decreased by 24% to £5,878m (December 2022: £7,709m)[38] - Barclays International's total income remained flat at £17,918m (December 2022: £17,867m), with operating costs increasing by 12% to £11,578m (December 2022: £10,361m)[38] - Consumer, Cards and Payments total income increased by 18% to £5,308m (December 2022: £4,499m), driven by a 22% increase in net interest income to £3,646m (December 2022: £2,979m)[43] - CIB income decreased 4% to £12,610m in 2023 from £13,076m in 2022, while CC&P income increased 18% to £5,308m[46] - Global Markets income decreased 16% to £7,218m in 2023, with FICC income down 15% to £4,845m and Equities income down 17% to £2,373m[46] - Investment Banking fees decreased 12% to £1,960m in 2023, with Advisory fees down 23% and Debt capital markets down 10%, while Equity capital markets increased 32%[46] Risk and Capital Management - Barclays expects an LLR of 50-60bps through the cycle and aims to operate within the CET1 ratio target range of 13-14%[18] - The Group's MREL ratio stands at 33.6%, exceeding the regulatory requirement of 30.1% plus a PRA buffer[26] - The Group's CET1 target ratio is 13-14%, with an Overall Capital Requirement of 12.0%[164][165] - The Group issued £14.1bn of MREL eligible instruments in 2023[158] - The UK leverage ratio requirement is 4.1%, comprising a 3.25% minimum requirement and additional buffers[166] - The Group's Pillar 2A requirement increased by 25bps to 4.6%, with at least 56.25% needing to be met with CET1 capital[165] - The Group's MREL requirement is the higher of 25.2% of RWAs or 6.75% of leverage exposures[167] - CET1 capital increased to £47.3bn as of 31.12.23, up from £46.9bn in December 2022[169] - Total regulatory capital stood at 20.1% as of 31.12.23, compared to 20.8% in December 2022[168] - MREL ratio as a percentage of total RWAs was 33.6% as of 31.12.23, slightly up from 33.5% in December 2022[168] - Total RWAs increased to £342.7bn as of 31.12.23, up from £336.5bn in December 2022[168] - Credit risk RWAs for Barclays UK were £73.5bn as of 31.12.23, up from £73.1bn in September 2023[170] - Barclays International's RWAs were £259.1bn as of 31.12.23, compared to £254.8bn in December 2022[171] - Head Office RWAs increased to £10.2bn as of 31.12.23, up from £8.6bn in December 2022[171] - Overall RWAs increased by £6.2 billion to £342.7 billion (December 2022: £336.5 billion)[172] - Credit risk RWAs decreased by £2.2 billion, driven by a £1.3 billion decrease in book size and a £2.6 billion decrease in model updates[173] - Counterparty credit risk RWAs increased by £2.8 billion, primarily due to a £2.1 billion increase in book size and a £2.7 billion increase in methodology and policy[173] - Market risk RWAs increased by £3.9 billion, largely due to a £3.3 billion increase in book size and a £1.2 billion increase in model updates[173] - Operational risk RWAs increased by £1.7 billion, driven by higher 2023 CC&P and Barclays UK income[173] Economic and Market Outlook - UK GDP growth is projected to be 0.5% in 2023, 0.3% in 2024, and 1.2% in 2025, with unemployment rising to 4.8% by 2024[107] - US GDP growth is forecasted at 2.4% in 2023, 1.3% in 2024, and 1.7% in 2025, with unemployment stabilizing at 4.3% from 2024 onwards[107] - The Downside 2 scenario assumes UK GDP could drop to -1.5% in 2024 and -2.6% in 2025, with unemployment peaking at 7.9% in 2025[108] - The Baseline scenario reflects weak GDP growth in the UK and US, with UK house prices declining in 2024 before stabilizing and resuming growth from 2025[109] - US unemployment projected at 3.7% in 2023, rising to 4.7% by 2026 under baseline scenario[114] - UK GDP growth forecasted at -0.8% in 2023, recovering to 1.9% by 2026 under baseline scenario[114] - UK HPI (Halifax House Price Index) expected to decline by 4.7% in 2023, with a recovery to 2.2% by 2026[114] - US federal funds rate projected at 4.8% in 2023, decreasing to 3.0% by 2026 under baseline scenario[114] - Downside 2 scenario shows UK GDP declining by 3.4% in 2023 and 3.8% in 2024, with a recovery to 2.3% by 2026[114] - Upside 2 scenario projects UK GDP growth of 2.8% in 2023, peaking at 3.7% in 2024, and stabilizing at 2.4% by 2026[115] - Scenario probability weighting as of 31.12.23: Upside 2 at 13.8%, Upside 1 at 24.7%, Baseline at 32.7%, Downside 1 at 18.3%, Downside 2 at 10.8%[116] - US HPI (FHFA House Price Index) expected to grow by 1.8% in 2023, increasing to 2.4% by 2026 under baseline scenario[114] - UK GDP growth for 2023 shows a baseline of 1.1%, with upside scenarios reaching up to 13.4% and downside scenarios dropping to -4.1%[117] - US GDP growth for 2023 has a baseline of 1.8%, with upside scenarios peaking at 15.1% and downside scenarios falling to -1.7%[117] - UK unemployment rate for 2023 is projected at 4.7% baseline, with upside scenarios as low as 3.5% and downside scenarios rising to 8.3%[117] - US unemployment rate for 2023 is expected at 4.2% baseline, with upside scenarios at 3.4% and downside scenarios reaching 7.5%[117] - UK HPI (House Price Index) for 2023 shows a baseline growth of 0.1%, with upside scenarios up to 23.8% and downside scenarios dropping to -35.0%[117] - US HPI for 2023 has a baseline growth of 3.7%, with upside scenarios reaching 27.4% and downside scenarios falling to -7.6%[117] Asset and Liability Management - Total assets decreased to £1,477.5bn, reflecting lower derivatives and liquidity pool, partially offset by increased trading securities and client balances[23] - Total assets decreased to £1,477.5 billion (December 2022: £1,513.7 billion)[186] - Total assets increased to £709,930 million in 2023 from £714,828 million in 2022, showing a slight decrease[197] - Trading portfolio assets grew significantly to £174,605 million in 2023 from £133,813 million in 2022, an increase of 30.5%[197] - Financial assets at fair value through the income statement decreased to £206,651 million in 2023 from £213,568 million in 2022, a decline of 3.2%[197] - Derivative financial instruments decreased to £256,836 million in 2023 from £302,380 million in 2022, a drop of 15.1%[197] - Financial assets at fair value through other comprehensive income increased to £71,836 million in 2023 from £65,062 million in 2022, a rise of 10.4%[197] - Total liabilities decreased to £606,252 million in 2023 from £634,181 million in

Barclays PLC (LSE:BARC) (Barclays PLC (LSE:BARC)) results tomorrow will be accompanied by a strategic review of the business and the results might not be pretty. Hargreaves believes there will be a focus on cost reduction rather than material business changes, especially in the UK which sits well above peers on a cost-to-income basis. That will mean job cuts, potentially in the much-debated investment bank, and to soften the blow a big hand-out to investors. Press drops at the weekend suggested this might i ...

As part of its efforts to expand business, Barclays PLC (BCS) is eyeing Societe Generale’s (SCGLY) U.K. private bank. Per a Reuters report, citing three people familiar with the matter, BCS is in the early stages of considering a bid.On Feb 20, BCS will announce a new group strategy (aimed at streamlining its business model and generating more sustainable returns for less risk), along with its full-year results.The bank’s move to bid for SocGen’s British private bank would complement the above-mentioned str ...

Barclays is said to be mulling the acquisition of SocGen's UK private bank, Kleinwort Hambros.  SocGen has initiated an auction process for its Kleinwort Hambros unit, as per Reuters sources. This is in addition to the sale of its Swiss private banking operations, signalling a potential shift in strategic direction. London-based Kleinwort Hambros had more than £12 billion in assets under management in 2022 and could be worth up to £700 million in a sale, as per Reuters. Lloyds, Rathbones, and Raymond James ...

Barclays (BCS) made a significant move in the U.K. retail banking space by announcing a deal to acquire Tesco's retail banking business for £600 million. This partnership with Tesco, the U.K's largest retailer, not only marks a key opportunity for BCS to further its retail banking ambitions but also signifies a new chapter in expanding its customer base and distribution channels.The acquisition includes Tesco-branded credit cards, unsecured personal loans and deposits, totaling approximately £8.3 billion in ...

Rivian Automotive Inc. has “leading technology,” according to Barclays analyst Dan Levy — but that may not be enough to help it withstand a challenging market. Levy previously thought Rivian’s RIVN, -1.14% standout product and technology meant the company had “three legs of demand,” with one for each of its products — the EDV commercial van, the R1T pickup truck and the R1S sport-utility vehicle. While he saw demand challenges for the first two last year, he thought R1S demand would hold up, but that’s ...

Rivian (NASDAQ:RIVN) stock is falling on Monday after the electric vehicle (EV) company’s shares were hit with a downgrade from Barclays analyst Dan Levy.That downgrade sees the Barclays analyst dropping RIVN stock from an “outperform” rating to an “equal weight” rating. That’s a more bearish stance compared to the analysts’ consensus rating of moderdate buy based on 22 opinions.In addition to that downgrade, Levy dropped the firm’s price target for RIVN stock from $16 per share to $9 per share. That’s a po ...

Barclays’ (BCS) inconsistent top-line performance is a major near-term headwind amid a challenging economic scenario. However, the bank’s restructuring initiatives continue to help manage operating expenses.Barclays has been witnessing volatility in both net interest income (NII) and net fee, commission and other income in the last few quarters, mainly on the back of a challenging operating backdrop.In 2021, NII declined, but net fee, commission and other income rose marginally. However, in 2022 and the fir ...

Barclays has entered into an agreement to acquire Tesco’s retail banking business, including its credit cards, unsecured personal loans, deposits and operating infrastructure.The acquisition of Tesco Bank will be carried out by Barclays UK, the companies said in a Friday (Feb. 9) press release.In addition, Barclays UK will enter into a long-term strategic partnership with Tesco Stores Limited for a period of 10 years, according to the release. Through this partnership, Barclays will offer financial services ...