Progress Update 2024

INVESTORS

Update from Group CEO, C.S.Venkatakrishnan

Venkat updates on the progress Barclays made in 2024 against its three-year plan.

Transcript: Update from C.S. Venkatakrishnan on Barclays’ 2024 progress

00:03

Today we announce our full year results for 2024,marking the completion of the  first year of our three-year plan to build a simpler, better, more balanced bank. I am gratified with our progress so far. We have achieved our 2024 financial targets, which places us on track to achieve our 2026 Group goals.

00:25

  • In 2024 our RoTE was 10.5% in line with our target to achieving greater than 10% for the year. 
  • Total income was £26.8bn, up 6% year on year, and we continued to focus on the quality and stability of our income mix.
  • We controlled costs well, with a cost-to-income ratio of 62%, achieving £1bn of gross cost efficiency savings for the year. In addition, our CET1 ratio was 13.6%, within our 13-14% range.
  • We announced £3bn of capital distributions for 2024, an important step on our plan to return at least £10bn to shareholders by 2026. This includes £1.2bn of dividends, increasing our dividend per share by 5%, to 8.4p per share.

01:22

Our acquisition of Tesco Bank is complete. This strategic relationship with the UK’s largest retailer forms part of our commitment to invest in our home market where we play an important role in unlocking economic growth. As we continue on our path to delivery, we are providing additional guidance for 2025, including a further improvement to Group RoTE to around 11%, and a progressive increase on our total payout compared to 2024.

01:53

I'm also pleased and proud to announce a share grant worth approximately £500 each to over 90,000 employees, to thank them for their efforts so far and align them better with our shareholders' interests going forward.

This share award will enable all colleagues to benefit tangibly from the firm's future progress.

More broadly, I have long felt that there is a need to revive a culture of share ownership in the UK, and this award represents our effort in this direction. I am very pleased with what we have achieved so far and optimistic for what lies ahead.

A UK-centred leader in global finance

We are unlocking UK growth

  • Bank around a quarter of UK corporates1 and c.1m SMEs, helping them to grow through our £22bn Business Prosperity Fund
  • Over 20 million UK retail customers
  • Process over 40% of the UK’s credit and debit card transactions
  • Euromoney ‘Best Investment Bank in the UK’ 20242

We are powering the US economy

  • Playing a leading role in the US economy for over 175 years
  • Facilitated over $1.8 trillion in funding to businesses in the US through the global equity and debt markets in 2024
  • A leader in the US Municipal Finance Market, with more than $19bn in issuance in 2024
  • A primary dealer of US treasuries
  • More than 20 million retail customers and partnerships with 20 of America’s leading brands, including XBOX, GAP and General Motors

With a network across Europe, Asia and the Middle East

  • With 26 offices across Europe, APAC and the Middle East, alongside our presence in the UK, US and the Americas, Barclays Investment Bank provides comprehensive international coverage for our clients
  • Our Private Banking International business serves high and ultra-high net worth clients in 7 locations throughout Europe, Middle East and Asia

2024 financial targets

Group RoTE of 10.5%

2024 target:  RoTE of greater than 10%

Full year 2024 income of £26.8bn

Up 6% on 2023

 

Group cost to income ratio 62%

2024 target: c.63% in 2024

Distributed £3.0bn of
capital to shareholders

2024 target: Capital distributions broadly
line with 2023

CET1 ratio
of 13.6%

2024 target: 13-14% target range
 

IB RWAs 56% of Group RWA allocation


Down from 58% in 2023

We have provided additional guidance for 2025

Group RoTE
of c.11% in 2025

2026 target:
Group RoTE in excess of 12%

Group NII of c.£12.2bn3 in 2025,
of which c.£7.4bn is from Barclays UK

2026 target:
Group total income of c.£30bn

Improve Group cost
to income ratio to c.61%

2026 target:
CIR in high 50s%

A progressive increase in total
capital distributions versus £3bn in 20244

2026 target:
Total capital distributions of at least £10bn between 2024-20264

CET1 ratio
of 13-14%

2026 target:
CET1 ratio of 13-14%
 

Continue to reduce IB RWAs
as a proportion of Group RWA allocation

2026 target:
IB RWAs c.50% of Group RWA allocation
 

Important information

1 Clients defined as any relationship from which we generate >£10,000 income per annum from our existing product set. UK Corporates defined as the stock of companies (group entities considered together) with annual turnover of >£6.5m. Includes clients across UK Corporate and the International Corporate Bank within the Investment Bank
2 https://www.euromoney.com/article/2di4eo7eze9xv34exr2td/awards/awards-for-excellence/awards-for-excellence-best-investment-bank-in-the-uk-barclays
3 Excluding Investment Bank and Head Office
4 Subject to supervisory and Board approval, anticipated financial performance and our published CET1 ratio target range of 13-14%

Note: Our targets and guidance are based on management's current expectations as to the macroeconomic environment and the business and are subject to change

Our three-year plan

In February 2024, Group CEO, C.S. Venkatakrishnan outlined a plan to improve our operational and financial performance, and improve total shareholder returns. 

Our 3-year plan
Investor Presentation (PDF 1.9MB)