23/02/2022 - Barclays plc: Fixed Income Full Year 2021 Results Call Presentation (PDF 845KB)

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

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