Barclays(US:BCS)2024-02-19 16:00Financial 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].