Half Year 2024 Barclays PLC Earnings Call Transcript
Key Points
- Barclays PLC (BCS) reported a strong Return on Tangible Equity (RoTE) of 11.1% for the first half of 2024, on track to exceed the 10% target for the year.
- The company increased its net interest income guidance for 2024 from GBP10.7 billion to approximately GBP11 billion, reflecting stable deposit trends.
- Barclays UK division achieved a RoTE of 22.3% for the quarter, with stable deposits and positive growth in lending across products.
- The Investment Bank's fee income increased by 45% year-on-year, driven by strong performance in equity capital markets and advisory services.
- Barclays PLC (BCS) announced a GBP1.2 billion shareholder distribution for the first half of 2024, including a 2.9p dividend per share and a GBP750 million buyback, as part of its plan to return at least GBP10 billion to shareholders by 2026.
- The company's RoTE for the second quarter was 9.9%, slightly below the 10% target, partly due to a 50 basis point headwind from the cash flow hedge reserve.
- Total income for the second quarter was impacted by a GBP240 million loss from business disposals.
- The US Consumer Bank's impairment charge increased year-on-year, with a loan loss rate of 438 basis points, reflecting higher write-offs.
- Barclays PLC (BCS) faced challenges in maintaining stable risk-weighted assets (RWAs) in the Investment Bank, with a GBP3 billion increase in RWAs during the quarter.
- The company's cost-to-income ratio was 63% in the second quarter, indicating ongoing pressure to manage costs effectively.
Welcome to Barclays Half Year 2024 Results Analyst and Investor Conference Call. I will now handover to C.S. Venkatakrishnan, Group Chief Executive, before I hand over to Anna Cross, Group Finance Director.
Good morning, everyone, and thank you for joining Barclays second quarter 2024 results call. At our investor update in February, we set out a three-year plan to deliver a better run, more strongly performing and higher returning Barclays. We are continuing to execute in a disciplined way against this plan and this is our second progress report.
Our second quarter and first half performance keeps pace with our 2024 and 2026 financial targets, which are: first, grow returns with a target return on tangible equity of above 12% in 2026; second, distribute more capital to shareholders, with a target of returning at least GBP10 billion between 2024 and 2026; and third, rebalance the bank, with a target to reduce RWAs in the Investment Bank from 58% of Group RWAs at the end of
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