Financial Performance - Return on tangible equity (RoTE) was 13.2% in the first half of the year and 12.3% in the quarter, with total income growing 14% year on year to GBP 7.2 billion [2][3] - Costs increased by 5%, leading to a four percentage point improvement in the cost-income ratio to 59% [2] - The group impairment charge for Q2 was $469 million, equating to a loan loss rate of 44 basis points [6] Business Line Performance - All divisions generated a double-digit RoTE in Q2, with the Investment Bank's RoTE improving by 2.6 percentage points year on year to 12.2% and the U.S. Consumer Bank's RoTE improving by one percentage point to 10.2% [2][3] - Stable income streams accounted for 40% of the Investment Bank's income, up from 29% in 2021 [5] Market Performance - The UK credit picture remains benign with low and stable delinquencies in consumer books and wholesale loan loss rates below expectations [6] - The U.S. Consumer Bank charge was GBP 312 million, stable year on year and down 22% versus the last quarter, with payment rates above pre-COVID levels [7] Company Strategy and Industry Competition - The three-year plan aims to deliver higher and more balanced returns, with a focus on operational improvements across divisions [3][4] - The acquisition of Tesco Bank and the deployment of £17 billion of business growth RWAs are part of the strategy to achieve targets by 2026 [4] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in delivering RoTE guidance and targets by continuing to drive income growth and operating leverage [4] - The company expects a group loan loss rate within the through-the-cycle guidance of 50 to 60 basis points for the full year 2025 [8] Other Important Information - The CET1 ratio was 14%, or 13.7% adjusted for the announced H1 buyback, aligning with the target range of 13% to 14% [9] - Total deposits increased by around £4 billion year to date, with growth in corporate deposits offsetting a slight contraction in consumer deposits [20] Q&A Session Summary Question: How does the U.S. Consumer Bank fit with the rest of Barclays businesses? - Management believes the U.S. Consumer Bank can generate good returns, aiming for RoTE greater than 12% by 2026, with a focus on improving net interest margin and generating dollar deposits [30][31] Question: If capital requirements were to drop, would the target CET1 ratio also drop? - Management indicated that CET1 targets are considered over a long time horizon, and while regulatory changes are monitored, the current target remains at 13% to 14% [37][38] Question: What is the target level for risk transfer trades (SRT)? - Management stated that they consider market capacity when sizing SRT amounts and do not directly reflect it in loan pricing, viewing it as a risk management tool [44][45] Question: What areas of capital requirements should be eased? - Management noted that regulatory expectations will influence target CET1 ratios, and they are engaged in discussions with regulators regarding the overall regulatory framework [47][48] Question: Can you provide an update on NDFI exposure? - Management reported minimal exposure in Barclays Bank Delaware and IHC entities, with about $20 billion exposure in the New York branch to various MBFIs [69][70]