Barclays : Fixed Income Full Year 2021 Results Call Presentation (PDF 845KB)

Barclays PLC

Fixed Income Investor Call

FY 2021 Results Announcement

23 February 2022

Tushar Morzaria

Barclays Group Finance Director

FY21 Group highlights

Income

£21.9bn

FY20: £21.8bn

Cost: income

ratio

66%

FY20: 64%

PBT

£8.4bn

FY20: £3.1bn

RoTE

13.4%

FY20: 3.2%

TNAV per

share 292p

Dec-20: 269p

Costs

£14.4bn

FY20: £13.9bn

Impairment

£(0.7)bn release

FY20: £4.8bn

charge

EPS

37.5p

FY20: 8.8p

CET1 ratio

15.1%

Dec-20: 15.1%

Liquidity Coverage Ratio 168%

Dec-20: 162%

• Income of £21.9bn up 1%, despite a 8% depreciation of average USD against GBP
• • BUK income increased 3%, CC&P income decreased 3%, and CIB income decreased 1%
• Costs increased 4% to £14.4bn, due to higher structural cost actions and performance costs
• • Base costs1 were flat at £12.0bn, incorporating investment for business growth, favourable FX movements, efficiency savings and lower bank levy
• Net credit impairment release of £0.7bn
• • Stage 1 and 2 impairment release of £1.3bn2, primarily due to an improved macroeconomic outlook
  • Stage 3 charge was £0.7bn2, reflecting reduced unsecured lending balances and benign credit environment
• PBT of £8.4bn, EPS of 37.5p and RoTE of 13.4%, with all operating divisions generating double digit returns
• Total 2021 payout equivalent of 15.0p per share, including 6.0p total dividend and total buybacks of up to £1.5bn announced in respect of 2021
• CET1 ratio of 15.1%, flat vs. Dec-20 including 72bps of capital distributions through dividends and buybacks
• TNAV per share increased 23p from Dec-20to 292p, reflecting 37.5p of EPS, partially offset by net adverse reserve movements and other items

Profit before tax (£m)

237

5,491

8,414

174553

3,065

FY20

Income

Costs

Impairment

Other net income

FY21

1 Costs excluding structural cost actions and performance costs | 2 Numbers do not sum to total due to rounding |

3 | Barclays FY 2021 Results | 23 February 2022

Outlook

Income

Impairment

Costs

Capital

Capital returns

• Barclays' diversified income streams position the Group well for the ongoing economic recovery and rising interest rates
• Impairment charge is expected to remain below pre-COVID-19 pandemic levels in coming quarters given reduced unsecured lending balances and an improved macroeconomic outlook
• Inflationary pressures and planned investment spend are expected to result in FY22 costs excluding structural cost actions and performance costs being modestly higher than £12.0bn1
• The CET1 ratio is expected to be impacted by c.80bps of regulatory changes which took effect from 1 January 2022
• Capital returns policy incorporates a progressive ordinary dividend, supplemented as appropriate, including with share buybacks

1 Group cost outlook is based on an average rate of 1.35 (USD/GBP) in 2022 and subject to foreign currency movements |

4 | Barclays FY 2021 Results | 23 February 2022

Daniel Fairclough

Interim Group Treasurer