Q3 2023 Barclays PLC Earnings Call

October 24, 2023

Unidentified Company Representative: Including generated income of $6.3 billion pounds in the quarter, down modestly year on year, excluding last year's impact from the operations of securities, our profit before tax was $1.9 billion pounds with earnings per share of $8.3 cents, We maintained a strong capital position with our CET one ratio at 14% up around 20 base points from the second quarter and at the top of our target range. In this context, we delivered third quarter return on tangible equity of 11%, taking us to 12, 5% for the year to date, and we continue to target above 10% for the full year. We are managing credit well with year to date loan loss rate of 43 basis points versus our through the cycle guidance of 50 to 60 basis points. Costs reduced by 4% in Q3 year on year, excluding over issuance cost last year and in Q4, we will continue to drive further efficiencies and greater productivity for the bank.

Coimbatore Sundararajan Venkatakrishnan: Including generated income of $6.3 billion pounds in the quarter, down modestly year on year, excluding last year's impact from the over-issuance of securities, our profit before tax was $1.9 billion pounds with earnings per share of $8.3 cents, We maintained a strong capital position with our CET1 ratio at 14% up around 20 basis points from the second quarter and at the top of our target range. In this context, we delivered a third quarter return on tangible equity of 11%, taking us to 12, 5% for the year to date, and we continue to target above 10% for the full year.

With one 3 billion pounds in the quarter down modestly year on year, excluding last years impact from the operations of securities.

Profit before tax was $1 9 billion pounds.

Earnings per share of $8 three.

We maintained a strong capital position with a CET one ratio at 14% up around 20 basis points from the second quarter and at the top of our target range.

We maintained a strong capital position with our CET one ratio at 14% up around 20 basis points from the second quarter and at the top of our target range.

In this context, we delivered third quarter return on tangible equity of 11%, taking us to 12, 5% for the year to date, and we continue to target above 10% for the full year.

Unidentified Company Representative: In this context, we delivered a third quarter return on tangible equity of 11%, taking us to 12, 5% for the year to date, and we continue to target above 10% for the full year, We are managing credit well, with year to date loan loss rate of 43 basis points, versus our through the cycle guidance of 50 to 60 basis points, costs reduced by 4% in Q3 year on year, excluding over issuance cost last year and in Q4, we will continue to drive further efficiencies and greater productivity for the bank.

We are managing credit well with year to date loan loss rate of 43 basis points versus our through the cycle guidance of 50 to 60 basis points.

Unidentified Company Representative: We are managing credit well, with year to date loan loss rate of 43 basis points, versus our through-the-cycle guidance of 50 to 60 basis points, costs reduced by 4% in Q3 year on year, excluding over issuance cost last year and in Q4, we will continue to drive further efficiencies and greater productivity for the bank, we expect this to continue to contribute to delivering enhanced returns to shareholders, we will update you on these and other actions alongside our full year results in February. Now turning to the business highlight. We continue to grow our U S cards business with and net receivables up 11% year on year at 30 billion. And we announced a new partnership with Microsoft and Mastercard issue Xbox its first ever co branded card in the U S. The integration of our U K wealth business and our private bank is also progressing well. We grew client assets and liabilities to nearly 180 billion pounds and invested assets to around 105 billion patents with this business, making nearly 900 million pounds of income in the ESP and generating attractive returns. In investment banking, we let some prominent transactions in this quarter, including the IPO in the U S. However, in the mixed market environment, we've had focus upon the performance relative to USPS. In part this is reflected our business competition, we performed well in equity capital markets, which is a smaller business for us relative to others.

Coimbatore Sundararajan Venkatakrishnan: We are managing credit well, with year to date loan loss rate of 43 basis points, versus our through-the-cycle guidance of 50 to 60 basis points, costs reduced by 4% in Q3 year on year, excluding over issuance cost last year and in Q4, we will continue to drive further efficiencies and greater productivity for the bank, we expect this to continue to contribute to delivering enhanced returns to shareholders, we will update you on these and other actions alongside our full year results in February.

Costs reduced by 4% in Q3 year on year, excluding over issuance cost last year and in Q4, we will continue to drive further efficiencies and greater productivity for the bank.

We expect this to continue to contribute to delivering enhanced returns to shareholders.

We will update you on these and other actions alongside our full year results in February.

Unidentified Company Representative: Now turning to the business highlight, we continue to grow our US cards business with and net receivables up 11% year on year at 30 billion and we announced a new partnership with Microsoft and Mastercard issue Xbox its first ever co-branded card in the US, the integration of our UK wealth business and our private bank is also progressing well, we grew client assets and liabilities to nearly 180 billion pounds and invested assets to around 105 billion patents with this business, making nearly 900 million pounds of income in the ESP and generating attractive returns. In investment banking, we let some prominent transactions in this quarter, including the IPO in the U S. However, in the mixed market environment, we've had focus upon the performance relative to USPS. In part this is reflected our business competition, we performed well in equity capital markets, which is a smaller business for us relative to others.

Coimbatore Sundararajan Venkatakrishnan: Now turning to the business highlights, we continue to grow our US cards business within net receivables up 11% year on year at 30 billion dollars and we announced a new partnership with Microsoft and Mastercard, to issue Xbox its first ever co-branded card in the US. The integration of our UK wealth business and our private bank is also progressing well, we grew clients assets and liabilities to nearly 180 billion pounds and invested assets to around 105 billion pounds with this business, making nearly 900 million pounds of income in the ESP and generating attractive returns.

Now turning to the business highlight.

We continue to grow our U S cards business with and net receivables up 11% year on year at $30 billion.

We continue to grow our U S cards business with and net receivables up 11% year on year at 30 billion.

And we announced a new partnership with Microsoft and Mastercard issue Xbox its first ever co branded card in the U S.

Coimbatore Sundararajan Venkatakrishnan: The integration of our UK wealth business and our private bank is also progressing well, we grew clients assets and liabilities to nearly 180 billion pounds and invested assets to around 105 billion pounds, with this business making nearly 900 million pounds of income in the ESP and generating attractive returns.

The integration of our U K wealth business and our private bank is also progressing well.

We grew client assets and liabilities to nearly 180 billion pounds and invested asset to around 105 billion patents with this business, making nearly 900 million pounds of income in the ESP and generating attractive returns in.

We grew client assets and liabilities to nearly 180 billion pounds and invested assets to around 105 billion patents with this business, making nearly 900 million pounds of income in the ESP and generating attractive returns.

Coimbatore Sundararajan Venkatakrishnan: In investment banking, we let some prominent transactions in this quarter, including the Arm IPO in the US, however, in the mixed market environment, we've had focus upon the performance relative to USPS, in part this is reflected as business competition, we performed well in equity capital markets, which is a smaller business for us relative to others. We were also selective on leveraged finance deals as a risk management matter which has affected our debt capital market performance. We continue to be cautious about the market backdrop, but our confidence in the potential of our business and as an example, we are acting as sole financial advisor to Capri in the $8 5 billion dollar acquisition by tapestry. Third quarter and expected to close in 2024. And market. This was our second highest Q3 income print in a decade with income up 4% quarter on quarter better than the U S. Peer average however income was down 13% against the record Q3 last year on a comparable basis. Which we supported clients through extreme volatility and growth in our home U K market. This quarter, we did not benefit to the same extent as our USPS did from the volatility and illustrates. As we have said previously investment in our combined fixed income and equity financing business delivered stability to our overall markets income. Over the past four years, our ranking in equity Prime brokerage has moved up from seven <unk> to join us. Complementing our existing strength in fixed income financing, where we ranked jointly first globally for the first half of 2023. Turning now to Barclays UK, we delivered a routine business above 20% for the quarter.

In investment banking, we let some prominent transactions in this quarter, including the IPO in the U S.

However, in the mixed market environment, we've had focus upon the performance relative to USPS.

In part this is reflected our business competition.

In part this is reflected our business competition, we performed well in equity capital markets, which is a smaller business for us relative to others.

We performed well in equity capital markets, which is a smaller business for us relative to others.

Coimbatore Sundararajan Venkatakrishnan: We were also selective on leveraged finance deals as a risk management matter, which has affected our debt capital market performance, We continue to be cautious about the market backdrop, but are confidence in the potential of our business and as an example, we are acting as sole financial advisor to Capri in their $8.5 billion dollar acquisition by Tapestry, announced in third quarter and expected to close in 2024. And market. This was our second highest Q3 income print in a decade with income up 4% quarter on quarter better than the U S. Peer average however income was down 13% against the record Q3 last year on a comparable basis. Which we supported clients through extreme volatility and growth in our home U K market. This quarter, we did not benefit to the same extent as our USPS did from the volatility and illustrates. As we have said previously investment in our combined fixed income and equity financing business delivered stability to our overall markets income. Over the past four years, our ranking in equity Prime brokerage has moved up from seven <unk> to join us. Complementing our existing strength in fixed income financing, where we ranked jointly first globally for the first half of 2023. Turning now to Barclays UK, we delivered a routine business above 20% for the quarter.

We will also selective on leveraged finance deals as a risk management matter.

We were also selective on leveraged finance deals as a risk management matter.

Which has affected our debt capital market performance.

It has affected our debt capital market performance.

We continue to be cautious about the market backdrop, but our confidence in the potential of our business and as an example, we are acting as sole financial advisor to Capri, and they're $8 5 billion dollar acquisition by tapestry.

We continue to be cautious about the market backdrop, but our confidence in the potential of our business and as an example, we are acting as sole financial advisor to Capri in the $8 5 billion dollar acquisition by tapestry.

Third quarter and expected to close in 2024.

And market. This was our second highest Q3 income print in a decade with income up 4% quarter on quarter better than the U S. Peer average however income was down 13% against the record Q3 last year on a comparable basis.

Coimbatore Sundararajan Venkatakrishnan: In market, this was our second highest Q3 income print in a decade, with income up 4% quarter on quarter, better than the US Peer average, however income was down 13% against the record Q3 last year, on a comparable basis, in which we supported clients through extreme volatility and girth in our home UK market. This quarter, we did not benefit to the same extent as our USPS did from the volatility it illustrates. As we have said previously investment in our combined fixed income and equity financing business delivered stability to our overall markets income, over the past four years, our ranking in equity Prime brokerage has moved up from seventh rank to join fifth, complementing our existing strength in fixed income financing, where we ranked jointly first globally for the first half of 2023. Turning now to Barclays UK, we delivered a routine business above 20% for the quarter.

Coimbatore Sundararajan Venkatakrishnan: In market, this was our second highest Q3 income print in a decade, with income up 4% quarter on quarter, better than the US peers average, however income was down 13% against the record Q3 last year, on a comparable basis, in which we supported clients through extreme volatility endured in our home UK market, this quarter, we did not benefit to the same extent as our US peers did from the volatility it illustrates.

And which we supported clients through extreme volatility and growth in our home U K market.

Which we supported clients through extreme volatility and growth in our home U K market.

This quarter, we did not benefit to the same extent as our USPS debt from the volatility in U S rates.

This quarter, we did not benefit to the same extent as our USPS did from the volatility and illustrates.

As we have said previously investment in our combined fixed income and equity financing business delivered stability to our overall markets income.

Coimbatore Sundararajan Venkatakrishnan: As we have said previously investment in our combined fixed income and equity financing business, delivers stability to our overall markets income, over the past four years, our ranking in equity Prime brokerage has moved up from seventh rank to join fifth, complementing our existing strength in fixed income financing, where we ranked jointly first globally for the first half of 2023. Turning now to Barclays UK, we delivered a routine business above 20% for the quarter.

Over the past four years, our ranking in equity Prime brokerage has moved up from seven <unk> to join us.

Complementing our existing fixed income financing, where we ranked jointly first globally for the first half of 2023.

Complementing our existing strength in fixed income financing, where we ranked jointly first globally for the first half of 2023.

Turning now to bucket the U K, we delivered a routine business above 20% for the quarter.

Turning now to Barclays UK, we delivered a routine business above 20% for the quarter.

Coimbatore Sundararajan Venkatakrishnan: Turning now to Barclays UK, we delivered a RoTE in the business above 20% for the quarter, both income and expenses were broadly stable, generating a cost income ratio of 66% and we intend to improve this over time as we continue to transform the business digitally. There has been an impact on our deposits and margins from retail customers seeking a higher return on their faces, which Andrew will cover in more detail. However, at the group level deposits were up 7 billion pounds quarter on quarter, demonstrating the strength of our diversified deposit and funding base. Our performance over the past three years compared to the previous slide shows that we have reset and stabilize group returns, providing a solid foundation on which to build even further. And I look forward to providing an investor update in February alongside our full year results. Where we will talk more about our plans to deliver further value to our shareholders. This will include setting out our capital allocation priorities as well as revised financial targets for cost returns and shareholder distributions. We have just completed the $750 million bond buyback announced at the half year. <unk> total shareholder distributions. To around $1 2 billion pounds, so far this year, including dividends and buybacks. This is up over 30% on the first half of last year and reflects our commitment to returning capital to shareholders. Thank you for listening and I will pass it onto Hana.

Other income and expenses were broadly stable generating a cost income ratio of 66% and we intend to improve this over time as we continue to transform our business digitally.

Both income and expenses were broadly stable generating cost income ratio of 66% and we intend to improve this over time as we continue to transform the business digitally.

There has been an impact on our deposits and margins from retail customers seeking a higher return on their faces, which Andrew will cover in more detail.

Coimbatore Sundararajan Venkatakrishnan: There has been an impact on our deposits and margins from retail customers, seeking a higher return on their savings, which Anna will cover in more detail, however, at the group level deposits were up $7 billion pounds quarter on quarter, demonstrating the strength of our diversified deposit and funding base. Our performance over the past three years compared to the previous slide shows that we have reset and stabilize group returns, providing a solid foundation on which to build even further. And I look forward to providing an investor update in February alongside our full year results. Where we will talk more about our plans to deliver further value to our shareholders. This will include setting out our capital allocation priorities as well as revised financial targets for cost returns and shareholder distributions. We have just completed the $750 million bond buyback announced at the half year. <unk> total shareholder distributions. To around $1 2 billion pounds, so far this year, including dividends and buybacks. This is up over 30% on the first half of last year and reflects our commitment to returning capital to shareholders. Thank you for listening and I will pass it onto Hana.

However, at the group level deposits were up 7 billion pounds quarter on quarter, demonstrating the strength of our diversified deposit and funding base.

At the group level deposits were up 7 billion pounds quarter on quarter, demonstrating the strength of our diversified deposit funding base.

Our performance over the past three years compared to the previous slide shows that we have reset and stabilize group returns, providing a solid foundation on which to build even further.

Coimbatore Sundararajan Venkatakrishnan: Our performance over the past three years compared to the previous slide, shows that we have reset and stabilize group returns, providing a solid foundation on which to build even further Anna and I look forward to providing an investor update in February alongside our full year results where we will talk more about our plans to deliver further value to our shareholders, this will include setting out our capital allocation priorities as well as revised financial targets for cost, returns and shareholder distributions. We have just completed the $750 million bond buyback announced at the half year. <unk> total shareholder distributions. To around $1 2 billion pounds, so far this year, including dividends and buybacks. This is up over 30% on the first half of last year and reflects our commitment to returning capital to shareholders. Thank you for listening and I will pass it onto Hana.

And I look forward to providing an investor update in February.

And I look forward to providing an investor update in February alongside our full year results.

Along side, our full year results.

Where we will talk more about our plans to deliver further value to our shareholders.

This will include setting out our capital allocation priorities as well as revised financial targets for cost returns and shareholder distributions.

We have just completed the $750 million bond buyback announced at the half year, taking total shareholder distributions.

We have just completed the $750 million bond buyback announced at the half year.

Coimbatore Sundararajan Venkatakrishnan: We have just completed the $750 million bond buyback announced at the half year, this includes our shareholder distributions to around $1.2 billion pounds, so far this year, including dividends and buybacks, this is up over 30% on the first half of last year and reflects our commitment to returning capital to shareholders. Thank you for listening and I will pass it onto Anna Now

<unk> total shareholder distributions.

Around $1 2 billion pounds, so far this year, including dividends and buybacks.

To around $1 2 billion pounds, so far this year, including dividends and buybacks.

This is up over 30% on the first half of last year and reflects our commitment to returning capital to shareholders.

You for listening and I will pass it onto Hana.

Thank you for listening and I will pass it onto Hana.

Thank you Dan and good morning, everyone.

Angela Anna Cross: Thank you Venka and good morning everyone, turning now to slide six, return on tangible equity for the third quarter was 11%, which takes it to 12.5% for the year to date, the cost income ratio was 63% in Q3 and 61% for the nine months in line with our low 60's guidance for the full year. We continue to see limited signs of credit stress as a loan loss rate for the quarter was 42 basis points and 43 for the nine months. And we have maintained strong capital and liquidity position. As you've just heard fromVenka, We will update you with revised financial targets as an investor update alongside our full year results. As part of this update we are evaluating actions to reduce structural costs, which may result in material additional charges in Q4 impacting this year's statutory performance, excluding any such charges, we continue to target R&D above 10% for the full year. Focusing now on Q3, starting on slide seven. There was no impact from the ever issuance of securities this quarter, but given the largely offsetting impact the income and costs in Q3 last year I will again use the adjusted numbers for the prior period. Great profit before tax was around $50 million lower at $1 9 billion with income down, 2% and cost down 4% year on year. Within total cost. <unk> costs were stable and there were no litigation and conduct charges this quarter compared to $164 million in Q3 last year. Impairment charges were up 52 million to $433 million, but the charge and this is Nick as we expected largely driven by growth in U S call. It. Cleanup increased 25. To 316, 10, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting lost tortured downwardly. As usual I will now cover the three key drivers of our returns, namely income costs and credit risk management. On slide eight. Great income with 90% at $6 3 billion. The 8% stronger Sterling U S dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars. CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year. Consumer cards and payments income was up 9% driven by growth in U S costs receivable on the U K wealth business transfer from Barclays UK in Q2.

Turning now to slide six.

Return on tangible equity for the third quarter was 11%, which takes it to 12, 5% for the year to date.

The cost income ratio was 63% in Q3 and 61% for the nine months in line with our less please guidance for the full year.

We continue to see limited signs of credit stress as a loan loss rate for the quarter was 42 basis points and 43 for the nine months.

Angela Anna Cross: We continue to see limited signs of credit stress as a loan loss rate for the quarter was 42 basis points and 43 for the nine months and we have maintained strong capital and liquidity position as you've just heard from Venka, We will update you with revised financial targets as an investor update alongside our full year results. As part of this update we are evaluating actions to reduce structural costs, which may result in material additional charges in Q4 impacting this year's statutory performance, excluding any such charges, we continue to target R&D above 10% for the full year. Focusing now on Q3, starting on slide seven. There was no impact from the ever issuance of securities this quarter, but given the largely offsetting impact the income and costs in Q3 last year I will again use the adjusted numbers for the prior period. Great profit before tax was around $50 million lower at $1 9 billion with income down, 2% and cost down 4% year on year. Within total cost. <unk> costs were stable and there were no litigation and conduct charges this quarter compared to $164 million in Q3 last year. Impairment charges were up 52 million to $433 million, but the charge and this is Nick as we expected largely driven by growth in U S call. It. Cleanup increased 25. To 316, 10, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting lost tortured downwardly. As usual I will now cover the three key drivers of our returns, namely income costs and credit risk management. On slide eight. Great income with 90% at $6 3 billion. The 8% stronger Sterling U S dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars. CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year. Consumer cards and payments income was up 9% driven by growth in U S costs receivable on the U K wealth business transfer from Barclays UK in Q2.

And we have maintained strong capital and liquidity position.

As you just heard from Bangkok, We will update you with revised financial targets as an investor update alongside our full year results.

As you've just heard from Bangkok, We will update you with revised financial targets as an investor update alongside our full year results.

As part of this update we are evaluating actions to reduce structural costs, which may result in material additional charges in Q4 impacting this year's statutory performance, excluding any such charges, we continue to target a rating above 10% for the full year.

Angela Anna Cross: As part of this update, we are evaluating actions to reduce structural costs, which may result in material additional charges in Q4, impacting this year's statutory performance, excluding any such charges, we continue to target a RoTE above 10% for the full year. Focusing now on Q3, starting on slide seven. There was no impact from the ever issuance of securities this quarter, but given the largely offsetting impact the income and costs in Q3 last year I will again use the adjusted numbers for the prior period. Great profit before tax was around $50 million lower at $1 9 billion with income down, 2% and cost down 4% year on year. Within total cost. <unk> costs were stable and there were no litigation and conduct charges this quarter compared to $164 million in Q3 last year. Impairment charges were up 52 million to $433 million, but the charge and this is Nick as we expected largely driven by growth in U S call. It. Cleanup increased 25. To 316, 10, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting lost tortured downwardly. As usual I will now cover the three key drivers of our returns, namely income costs and credit risk management. On slide eight. Great income with 90% at $6 3 billion. The 8% stronger Sterling U S dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars. CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year. Consumer cards and payments income was up 9% driven by growth in U S costs receivable on the U K wealth business transfer from Barclays UK in Q2.

Focusing now on Q3, starting on slide seven.

There was no impact from the issuance of securities this quarter, but given the largely offsetting impact to income and costs in Q3 last year I will again use the adjusted numbers for the prior period.

There was no impact from the ever issuance of securities this quarter, but given the largely offsetting impact the income and costs in Q3 last year I will again use the adjusted numbers for the prior period.

Angela Anna Cross: Focusing now on Q3, starting on slide seven, there was no impact from the Over-issuance of securities this quarter, but given the largely offsetting impact to income and costs in Q3 last year, I will again use the adjusted numbers for the prior period. Group profit before tax was around $50 million lower at $1.9 billion with income down, 2% and cost down 4% year on year. Within total costs, uprising costs were stable and there were no litigation and conduct charges this quarter compared to $164 million in Q3 last year, impairment charges were up 52 million to $433 million but the charge, and this is next, as we expected largely driven by growth in US cards. It. Cleanup increased 25. To 316, 10, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting lost tortured downwardly. As usual I will now cover the three key drivers of our returns, namely income costs and credit risk management. On slide eight. Great income with 90% at $6 3 billion. The 8% stronger Sterling U S dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars. CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year. Consumer cards and payments income was up 9% driven by growth in U S costs receivable on the U K wealth business transfer from Barclays UK in Q2.

Great profit before tax was around $50 million lower at $1 9 billion with income down, 2% and cost down 4% year on year.

Within total cost operating costs were stable and there were no litigation and conduct charges this quarter compared to $164 million in Q3 last year.

Within total cost.

<unk> costs were stable and there were no litigation and conduct charges this quarter compared to $164 million in Q3 last year.

Impairment charges were up 52 million to $433 million with the charge and this is Nick as we expected largely driven by growth in U S cards.

Impairment charges were up 52 million to $433 million, but the charge and this is Nick as we expected largely driven by growth in U S call. It.

<unk> increased 25 to.

Cleanup increased 25.

316, 10, reflecting our profit and positive cash flow hedge reserve movement broadly offsetting last quarters downwardly.

To 316, 10, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting lost tortured downwardly.

Angela Anna Cross: TNAV increased 25.10 to 316.10, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting las quarter downward move, as usual, I will now cover the three key drivers of our returns, namely income, costs and credit risk management, starting on slide eight. Great income with 90% at $6 3 billion. The 8% stronger Sterling U S dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars. CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year. Consumer cards and payments income was up 9% driven by growth in U S costs receivable on the U K wealth business transfer from Barclays UK in Q2.

Angela Anna Cross: TNAV increased 25.10 to 316.10, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting last quarter downward move, as usual, I will now cover the three key drivers of our returns, namely income, costs and credit risk management, starting on slide eight.

Angela Anna Cross: increased 25. To 316, 10, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting lost tortured downwardly. As usual I will now cover the three key drivers of our returns, namely income costs and credit risk management. On slide eight. Great income with 90% at $6 3 billion. The 8% stronger Sterling U S dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars. CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year. Consumer cards and payments income was up 9% driven by growth in U S costs receivable on the U K wealth business transfer from Barclays UK in Q2.

As usual I will now cover the three key drivers of our return, namely income costs and credit risk management.

As usual I will now cover the three key drivers of our returns, namely income costs and credit risk management.

Starting on slide eight.

On slide eight.

Great income was down 2% at $6 3 billion.

Great income with 90% at $6 3 billion.

Angela Anna Cross: Group income went down 2% at $6.3 billion, the 8% stronger Sterling US dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars, CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year, consumer cards and payments income was up 9% driven by growth in US costs receivable on the UK wealth business transfer from Barclays UK in Q2. Excluding the Transtar Cc and fee income was up 5% and Barclays UK income was up 1%. Net interest income across the bank grew by $179 million or 6% year on year, driving a 13 basis point increase in great men to 3.98%. Barclays UK contributed around half of Greek NII this quarter with approximately 20% from CIB and 30% from cgmp, mostly U S cards from the private bank. The UK NII was $17 million higher year on year with NIM of 304 basis points. And where we anticipate that Q2, which I will come back to when I cover Barclays UK.

Angela Anna Cross: Group income went down 2% at $6.3 billion, the 8% stronger Sterling/US dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars, CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year, consumer cards and payments income was up 9% driven by growth in US card receivable on the UK wealth business transfer from Barclays UK in Q2.

The 8% stronger Sterling U S dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars.

Credit stress as a loan loss rate for the quarter was 42 basis points and 43 for the nine months.

CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year.

And we have maintained strong capital and liquidity positions.

As you've just heard from Bangkok, We will update you with revised financial targets at an investor update alongside our full year results.

Consumer cards and payments income was up 9% driven by growth in U S costs receivable on the U K wealth business transfer from Barclays UK in Q2.

As part of this update we are evaluating options to reduce structural costs, which may result in material additional charges in Q4 impacting this year's statutory performance, excluding any such charges, we continue to target a rotate above 10% for the full year.

Hey.

Excluding the terms of our Cc E&P income was up 5% and Barclays UK income was up 1%.

Excluding the Transtar Cc and fee income was up 5% and Barclays UK income was up 1%.

Angela Anna Cross: Excluding the transfer, CC&P income was up 5% and Barclays UK income was up 1%, Net interest income across the bank grew by $179 million or 6% year on year, driving a 13 basis point increase in group NIM to 3.98%, Barclays UK contributed around half of group NII this quarter, with approximately 20% from CIB and 30% from CC&P mostly US cards and the private bank. The UK NII was $17 million higher year on year with NIM of 304 basis points. And where we anticipate that Q2, which I will come back to when I cover Barclays UK. Thanks, E&P NII increased by 64 million, mainly from U S card balance growth, partially offset by private client deposit migration to a higher yielding products. This generated net of circa eight 9% in Q3, which was up from circa eight 3% at Q2 and included a small one off increase in project Bank. So we would expect NIM to step back a little in Q4. CIB NII increased $94 million year on year, which included an improvement of nine basis points to 365% in then driven by the benefit of rate rises in transaction banking.

Net interest income across the bank grew by $179 million or 6% year on year, driving a 13 basis point increase in great men to 3.98%.

Focusing now on Q3, starting on slide seven.

There was no impact from the over issuance of securities this quarter, but given the largely offsetting impact to income and costs in Q3 last year I will again use the adjusted numbers for the prior period.

Barclays UK contributed around half of Greek NII this quarter with approximately 20% from CIB and 30% from CPC and paid mostly U S. Cogs from the private bank.

Barclays UK contributed around half of Greek NII this quarter with approximately 20% from CIB and 30% from cgmp, mostly U S cards from the private bank.

Group profit before tax was around 50 million of LIBOR at 1.9 billion with income down, 2% and costs down 4% year on year.

Angela Anna Cross: The UK NII was $17 million higher year on year with NIM of 304 basis points aligned where we anticipated at Q2 which I will come back to when I cover Barclays UK, CC&P NII increased by 64 million, mainly from US card balance growth, partially offset by private client deposit migration to our higher yielding products. this generated NIM of circa 8.9% in Q3, which was up from circa 8.3% at Q2 and included a small one off increase in project Bank, so we would expect NIM to step back a little in Q4. CIB NII increased $94 million year on year, which included an improvement of nine basis points to 365% in then driven by the benefit of rate rises in transaction banking.

The UK NII was $17 million higher year on year with NIM of 304 basis points.

Within total cost operating cost was stable and there were no litigation and conduct charges this quarter compared to $164 million in Q3 last year.

And where we anticipate that Q2, which I will come back to when I cover Barclays UK.

Impairment charges were up 52 million to $433 million with the charge and business mix as we expected.

Thanks, E&P NII increased by 64 million, mainly from U S card balance growth, partially offset by private client deposit migration to our higher yielding products.

Thanks, E&P NII increased by 64 million, mainly from U S card balance growth, partially offset by private client deposit migration to a higher yielding products.

Largely driven by growth in U S cards.

<unk> increased 25, 10 to 316 pence, reflecting our profit and positive cash flow hedge reserve movements broadly offsetting loss torches downward moves.

Angela Anna Cross: This generated NIM of circa 8.9% in Q3, which was up from circa 8.3% at Q2 and included a small one off increase in project Bank, so we would expect NIM to step back a little in Q4, CIB NII increased $94 million year on year, which included an improvement of 9 basis points to 365% in NIM driven by the benefit of rate rises in transaction banking. Moving on to costs on slide 10.

This generated men of circa eight 9% in Q3, which was up from circa eight 3% of Q2 and included a small one off increase in project Bank. So we would expect NIM to step back a little in Q4.

This generated net of circa eight 9% in Q3, which was up from circa eight 3% at Q2 and included a small one off increase in project Bank. So we would expect NIM to step back a little in Q4.

As usual I will now cover the three key drivers of our returns, namely income costs and credit risk management.

CIB NII increased $94 million year on year, which included an improvement of nine basis points to 365% in then driven by the benefit of rate rises in transaction banking.

Starting on slide eight.

Great income was down 2% at $6 3 billion.

The 8% stronger Sterling U S dollar rate in Q3 year on year reduced our reported income around 40% of which is in dollars.

Angela Anna Cross: Moving on to costs on slide 10, we are delivering on pricing cost guidance with costs in Q2, and Q3 of around 4 billion below the Q1 high point, the cost/income ratio improved year on year to 63% consistent with Q2, Barclays UK cost/income ratio was 56% with total costs flat year on year as we progressed our digital transformation and rationalization of the physical footprint and headcount. Consumer cards and payments operating costs increased by 9% broadly in line with income as we invested to grow U S cards, and our private bank. CIB operating costs were stable year on year annualize the Q1 level of guidance. As we said we are evaluating actions to reduce structural cost across the Greek and we'll get more detail. Our investor update. Moving on to credit on slide 11. We're seeing the benefit of our long standing prudent approach to provisioning. In terms of credit decisions, we have taken in the past reflected in our balance sheet provision coverage ratios as well as the credit protection, we have in the CIB. The impairment allowance increased by <unk> 3 billion to $6 4 billion. This. This was primarily driven by our U S card portfolios in line with our expectations. We updated the macroeconomic variables from Q2, resulting in a modest impact on expected credit losses. We maintained robust coverage ratios of one 4% for the grid. Eight 6% for our card portfolios in aggregate, which I'll cover in more detail on the next slide starting with U K card. We continue to see conservative customer behavior across our UK portfolio and credit performance remained benign.

Moving on to costs on slide 10.

We are delivering on pricing cost guidance with costs in Q2, and Q3 of around 4 billion below the Q1 high point.

CIB income fell 6% with a lower activity in the investment bank, partially offset by corporate income growth year on year.

The cost income ratio improved year on year to 63% consistent with Q2.

The cost income ratio improved year on year to 63% consistent with TK.

Consumer cards and payments income was up 9% driven by growth in U S costs receivable on the U K wealth business transfer from Barclays UK in Q2.

Barclays UK cost income ratio was 56% with total costs flat year on year as we progressed, our digital transformation and rationalization of the physical footprint and headcount.

Barclays UK cost income ratio was 56% with total costs flat year on year as we progressed our digital transformation.

Excluding the transfer C. C. N P income was up 5% and Barclays UK income was up 1%.

Angela Anna Cross: Consumer cards and payments operating costs increased by 9% broadly in line with income as we invested to grow US cards, and our private bank, CIB operating costs were stable year on year and below the Q1 level of guidance, as we said we are evaluating actions to reduce structural cost across the group and we'll get more detail at our investor update. Moving on to credit on slide 11. We're seeing the benefit of our long standing prudent approach to provisioning. In terms of credit decisions, we have taken in the past reflected in our balance sheet provision coverage ratios as well as the credit protection, we have in the CIB. The impairment allowance increased by <unk> 3 billion to $6 4 billion. This. This was primarily driven by our U S card portfolios in line with our expectations. We updated the macroeconomic variables from Q2, resulting in a modest impact on expected credit losses. We maintained robust coverage ratios of one 4% for the grid. Eight 6% for our card portfolios in aggregate, which I'll cover in more detail on the next slide starting with U K card. We continue to see conservative customer behavior across our UK portfolio and credit performance remained benign.

<unk> of the physical footprint and headcount.

Consumer cards and payments operating cost increased by 9% broadly in line with income as we invested to grow U S card and our private bank.

Consumer cards and payments operating costs increased by 9% broadly in line with income as we invested to grow U S cards, and our private bank.

Net interest income across the bank grew by $179 million or 6% year on year, driving a 13 basis point increase in Greek then to 3.98%.

CIB operating costs were stable year on year annualize the Q1 levels.

CIB operating costs were stable year on year annualize the Q1 level of guidance.

Got it.

Up with U K contributed around half of group NII this quarter with approximately 20% from CIB and 30% from C. CMP, mostly U S card and the private bank.

As we said we are evaluating actions to reduce structural cost across the Greek and we'll get more detail.

Angela Anna Cross: Moving on to credit on slide 11, We are seeing the benefits of our long standing prudent approach to provisioning, both in terms of credit decisions we have taken in the past, reflected in our balance sheet provision on coverage ratios, as well as the credit protection, we have in the CIB. The impairment allowance increased by <unk> 3 billion to $6 4 billion. This. This was primarily driven by our U S card portfolios in line with our expectations. We updated the macroeconomic variables from Q2, resulting in a modest impact on expected credit losses. We maintained robust coverage ratios of one 4% for the grid. Eight 6% for our card portfolios in aggregate, which I'll cover in more detail on the next slide starting with U K card. We continue to see conservative customer behavior across our UK portfolio and credit performance remained benign.

Our investor update.

Moving on to credit on slide 11.

We're seeing the benefit of our long standing prudent approach to provisioning.

Being UK NII was 17 million higher year on year with NIM of 304 basis points.

In terms of credit decisions, we have taken in the past reflected in our balance sheet provision on coverage ratios as well as the credit protection, we have in the CIB.

In terms of credit decisions, we have taken in the past reflected in our balance sheet provision coverage ratios as well as the credit protection, we have in the CIB.

One of them, where we anticipated that Q2, which I will come back to when I cover our Barclays UK.

Angela Anna Cross: The impairment allowance increased by 0.3 billion to $6.4 billion, this was primarily driven by our US card portfolios in line with our expectations, we updated the macroeconomic variables from Q2, resulting in a modest impact on expected credit losses, We maintained robust coverage ratios of 1.4% for the group and 8.6% for our card portfolios in aggregate, which I'll cover in more detail on the next slide starting with UK card. We continue to see conservative customer behavior across our UK portfolio and credit performance remained benign.

The impairment allowance increased by <unk> 3 billion to $6 4 billion. This.

D C N P. NII increased by 64 million, mainly from U S card balance growth, partially offset by private client deposit migration to a higher yielding products.

This was primarily driven by our U S card portfolio in line with our expectations.

This was primarily driven by our U S card portfolios in line with our expectations.

We updated the macroeconomic variables from Q2, resulting in a modest impact on expected credit losses.

This generated men of circa eight 9% in Q3, which was up from circa eight 3% at Q2 and included a small one off increase in private bank. So we would expect NIM to step back a little in Q4.

We maintained robust coverage ratios of one 4% for the grid at eight 6% for our card portfolios in aggregate, which I'll cover in more detail on the next slide starting with U K card.

We maintained robust coverage ratios of one 4% for the grid.

Eight 6% for our card portfolios in aggregate, which I'll cover in more detail on the next slide starting with U K card.

We continue to see conservative customer behavior across our UK portfolio and credit performance remained benign customers are being disciplined about building unsecured balances with U K card repayment rates high across the credit spectrum.

CIB NII increased $94 million year on year, which included an improvement of nine basis points to 365% and then driven by the benefit of rate rises in transaction banking.

We continue to see conservative customer behavior across our UK portfolio and credit performance remained benign.

Angela Anna Cross: We continue to see conservative customer behavior across our UK portfolio and credit performance remained benign, customers are being disciplined about building unsecured balances with UK cause repayment rates high across the credit spectrum. Although we have grown balances modestly over the past year interest, earning lending balances have decreased impacting NIM benefiting credit performance. We do expect <unk> to grow in 2024 as our more recent customer acquisition activity begin to Mitchell. 30 day arrears rates. Rates remained stable and in line relative to historic levels. The nature of our U S cards proposition is different as a reminder, we are the partner card issuer for around 20 clients rewards program, including some of the biggest brands in the U S. Given our historic skew to travel and airlines. This is a high credit quality portfolio. Our risk mix has improved at the end of 2019 with 88% above our 665. Compared to 86% at the end of 2019, including the addition of the gas portfolio in 2022. On the chart you can see that 30 day arrears rates are now in line with our pre pandemic experience at two 7% as we expected our.

Customers are being disciplined about building unsecured balances with UK cause repayment rates high across the credit spectrum.

Moving on to costs on slide 10.

Angela Anna Cross: Although we have grown balances modestly over the past year interest, earning lending balances have decreased impacting NIM benefiting credit performance. We do expect <unk> to grow in 2024 as our more recent customer acquisition activity begin to Mitchell. 30 day arrears rates. Rates remained stable and in line relative to historic levels. The nature of our U S cards proposition is different as a reminder, we are the partner card issuer for around 20 clients rewards program, including some of the biggest brands in the U S. Given our historic skew to travel and airlines. This is a high credit quality portfolio. Our risk mix has improved at the end of 2019 with 88% above our 665. Compared to 86% at the end of 2019, including the addition of the gas portfolio in 2022. On the chart you can see that 30 day arrears rates are now in line with our pre pandemic experience at two 7% as we expected our.

Angela Anna Cross: Although we have grown balances modestly over the past year interest, earning lending balances have decreased impacting NIM benefiting credit performance.

Although we have grown balances modestly over the past year.

Although we have grown balances modestly over the past year interest, earning lending balances have decreased impacting NIM benefiting credit performance.

We are delivering on pricing cost guidance with costs in Q2, and Q3 of Orion 4 billion below the Q1 high point.

Just earning lending balances have decreased impacting NIM benefiting credit performance.

Angela Anna Cross: We do expect our yield to grow in 2024 as our more recent customer acquisition activity begins to mature, 30 day arrears rates remained stable and low, relative to historic levels, the nature of our US cards proposition is different, as a reminder, we are the partner card issuer for around 20 clients rewards program, including some of the biggest brands in the US. Given our historic skew to travel and airlines. This is a high credit quality portfolio. Our risk mix has improved at the end of 2019 with 88% above our 665. Compared to 86% at the end of 2019, including the addition of the gas portfolio in 2022. On the chart you can see that 30 day arrears rates are now in line with our pre pandemic experience at two 7% as we expected our.

We do expect <unk> to grow in 2024 as our more recent customer acquisition activity begin to Mitchell.

The cost income ratio improved year on year to 63% consistent with Q2.

30 day arrears rates.

Barclays UK cost income ratio was 56% with total costs flat year on year as we progressed, our digital transformation and rationalization of the physical footprint and headcount.

Rates remained stable and reliable relative to historic levels.

Rates remained stable and in line relative to historic levels.

The nature of our U S cards proposition is different as a reminder, we are the partner card issuer for around 20 clients rewards program, including some of the biggest brands in the U S.

Consumer cards and payments operating costs increased by 9% broadly in line with income as we invested to grow U S cards, and our private bank.

Angela Anna Cross: Given our historic skew to travel and airlines, this is a high credit quality portfolio, our risk mix has improved at the end of 2019 with 88% of the book, above the 665 points, compared to 86% at the end of 2019, including the addition of the gas portfolio in 2022. On the chart you can see that 30 day arrears rates are now in line with our pre pandemic experience at two 7% as we expected our.

Angela Anna Cross: Given our historic skew to travel and airlines, this is a high credit quality portfolio,

Given our historic skew to travel and airlines. This is a high credit quality portfolio.

CIB operating costs were stable year on year and below the Q1 level of guided.

Angela Anna Cross: Our risk mix has improved as the end of 2019 with 88% of the book, above the 665 points, compared to 86% at the end of 2019, including the addition of the GAP portfolio in 2022, on the chart you can see that 30 day arrears rates are now in line with our pre-pandemic experience at 2.7% as we expected. Our impairment coverage also increased to 9.7% with stage two now at 35%, reflecting our expectation of higher unemployment, from September the lively level of 3.8% to a peak of 4.4% by Q3 2024. This was of course result in increased the risk which are reflected in our balance sheet provisioning. Moving onto the impairment charge on slide 13. The impairment charge of $433 million was up around $50 million year on year, giving a loan loss rate of 42 basis points. Most of the Q3 charge was driven by growth in U S card balances continued seasoning of the GAAP book in line with expectations and the increase in the areas that I mentioned. Our guidance of 50 to 60 basis points through the cycle is higher than the year to date experience. We are mindful that Q4, usually sees a higher charge in part reflecting seasonality. Spectation that U S card growth over the holiday season. This generally leads to higher balances on some builds an impairment under <unk> nine were increased utilization, even by customers, who are making timely payments Tam. Trigger stage two migration. The Barclays UK charge was $59 million with a loan loss rate. 10 basis points, our net has been the lone Star T now for nearly three years.

Our risk mix has improved at the end of 2019 with 88% above our 665 compared to 86% at the end of 2019, including the addition of the gas portfolio in 2020.

Our risk mix has improved at the end of 2019 with 88% above our 665.

As we said we are evaluating actions to reduce structural cost across the group and will give more detail at our investor update.

Compared to 86% at the end of 2019, including the addition of the gas portfolio in 2022.

On the chart you can see the 30 day arrears rates are now in line with our pre pandemic experience at two 7%.

On the chart you can see that 30 day arrears rates are now in line with our pre pandemic experience at two 7% as we expected our.

Moving on to credit on Slide 11, we are seeing the benefit of our long standing prudent approach to provisioning.

As we expected.

Both in terms of credit decisions, we have taken in the past reflected in our balance sheet provision on coverage ratios as well as the credit protection, we have in the CIB.

Angela Anna Cross: Our impairment coverage also increased to 9.7% with stage two now at 35%, reflecting our expectation of higher unemployment, from September the lively level of 3.8% to a peak of 4.4% by Q3 2024, this would of course, result in increased arrear which are reflected in our balance sheet provisioning, moving onto the impairment charge on slide 13.

Our impairment coverage also increased nine 7% with stage two now at 35%, reflecting our expectation of higher unemployment from September <unk> level of three 8% to a peak of four 4% by Q3 2024.

Our impairment coverage also increased nine 7% with stage two now at 35%, reflecting our expectation of higher unemployment from September the lively level of three 8% to a peak of four 4% by Q3 2024.

The impairment allowance increased by <unk> 3 billion to $6 4 billion.

This was primarily driven by our U S cards portfolio in line with our expectations.

Angela Anna Cross: This would of course, result in increased arrear which are reflected in our balance sheet provisioning, moving onto the impairment charge on slide 13. The impairment charge of $433 million was up around $50 million year on year, giving a loan loss rate of 42 basis points. Most of the Q3 charge was driven by growth in U S card balances continued seasoning of the GAAP book in line with expectations and the increase in the areas that I mentioned. Our guidance of 50 to 60 basis points through the cycle is higher than the year to date experience. We are mindful that Q4, usually sees a higher charge in part reflecting seasonality. Spectation that U S card growth over the holiday season. This generally leads to higher balances on some builds an impairment under <unk> nine were increased utilization, even by customers, who are making timely payments Tam. Trigger stage two migration. The Barclays UK charge was $59 million with a loan loss rate. 10 basis points, our net has been the lone Star T now for nearly three years.

Angela Anna Cross: This would of course, result in increased arrear which are reflected in our balance sheet provisioning, moving onto the impairment charge on slide 13.

This was of course result in increased the risk which are reflected in our balance sheet provisioning.

We updated the macroeconomic variables from Q2, resulting in a modest impact on expected credit losses.

Angela Anna Cross: The impairment charge of $433 million was up around $50 million year on year, giving a loan loss rate of 42 basis points, most of the Q3 charge was driven by growth in US card balances, continued seasoning of the GAP book in line with expectations and the increase in the arrears that I mentioned. Our guidance of 50 to 60 basis points through the cycle is higher than the year to date experience. We are mindful that Q4, usually sees a higher charge in part reflecting seasonality. Spectation that U S card growth over the holiday season. This generally leads to higher balances on some builds an impairment under <unk> nine were increased utilization, even by customers, who are making timely payments Tam. Trigger stage two migration. The Barclays UK charge was $59 million with a loan loss rate. 10 basis points, our net has been the lone Star T now for nearly three years.

Moving onto the impairment charge on slide 13.

We maintained robust coverage ratios of one 4% for the grip.

The impairment charge of $433 million was up around $50 million year on year, giving a loan loss rate of 42 basis points.

Eight 6% for our card portfolios in aggregate, which I'll cover in more detail on the next slide starting with U K card.

Most of the Q3 charge was driven by growth in U S card balances continued seasoning of the GAAP book in line with expectations and the increase in areas that I mentioned.

Most of the Q3 charge was driven by growth in U S card balances continued seasoning of the GAAP book in line with expectations and the increase in the areas that I mentioned.

We continue to see conservative customer behavior across our UK portfolios and credit performance remained benign.

Customers are being disciplined about building unsecured balances with U K card repayment rates high across the credit spectrum.

Angela Anna Cross: Our guidance of 50 to 60 basis points through the cycle is higher than the year to date experience, we are mindful that Q4 usually sees a higher charge, in part reflecting seasonality and our expectations at US cards growth over the holiday season, this generally leads to higher balances and some build in impairment under IFRS 9 where increased utilization, even by customers who are making timely payments (inaudible) triggers stage two migration. The Barclays UK charge was $59 million with a loan loss rate. 10 basis points, our net has been the lone Star T now for nearly three years.

Our guidance of 50 to 60 basis points through the cycle is higher than a year to date experience. We are mindful that Q4, usually sees a higher charge in part reflecting seasonality.

Our guidance of 50 to 60 basis points through the cycle is higher than the year to date experience. We are mindful that Q4, usually sees a higher charge in part reflecting seasonality.

Although we have grown balances modestly over the past year interest, earning lending balances have decreased impacting NIM benefiting credit performance.

Spectation that U S card growth over the holiday season.

We do expect <unk> to grow in 2024 of our more recent customer acquisition activity begins to mature.

This generally leads to higher balances on some builds an impairment under <unk> nine were increased utilization, even by customers, who are making timely payments Tam.

Generally leads to higher balances on some bills and impairment under <unk> nine were increased utilization, even by customers, who are making timely payments.

30 day arrears.

As rates remained stable and low relative to historic levels.

<unk> trigger stage two migration.

Trigger stage two migration.

Angela Anna Cross: The Barclays UK charge was $59 million with a loan loss rate of 10 basis points, and net cap in below 30 now for nearly three years, even though our customers are experiencing affordability pressures, this is not translating into credit stress as they manage their finances proactively, the CIB had a small release and we're seeing no real observed credit deterioration with our synthetic credit protection also working well. Moving now to the business performance, starting with Barclays UK on slide 14. Profits were stable year on year with <unk> of 21% for the quarter. Excluding the UK wealth transfer income was up 1%. Costs were broadly stable as our transformation plan progressed, resulting in a cost to income ratio of 56% for the quarter. Loan growth remains muted, reflecting customer caution in the current macroeconomic environment. Our prudent risk positioning. The reduction in business banking assets was driven primarily by repayment of government loan scheme of $2 7 billion. Mortgage balances were stable in the quarter up 166 billion with re mortgaging still contributing most of the activity. Now looking at the UK men, which was 304 basis points. As a reminder, bek NII is around 25% of group income and one basis point of NIM equates to around $20 million of NII annualized or less than 1% of group income. Q2, we said that we expected NIM to step down from Q3, and then to stabilize into Q4. Most of the moving part played out as expected in Q3 with structural hedge tailwind continuing on mortgage margin pressure somewhat easing.

The nature of our U S cards proposition is different as a reminder, we are the partner card issuer for around 20 clients rewards programs, including some of the biggest brands in the U S.

The Barclays UK charge was $59 million with a loan loss rate of.

The Barclays UK charge was $59 million with a loan loss rate.

10 basis points.

10 basis points, our net has been the lone Star T now for nearly three years.

It has been the Lone Star T now for nearly three years.

Even though our customers are experiencing affordability pressures this is not translating into credit stress.

Even though our customers are experiencing affordability pressures.

Given our historic skewed to travel on that one this is a high credit quality portfolio.

Is not translating into credit stress as they manage their finances proactively.

They manage their finances proactively.

Our risk mix has improved at the end of 2019 with 88% the book above a 665 <unk> compared to 86% at the end of 2019, including the addition of the golf portfolio in 2022.

The CRB had a small release.

CIB had a small release.

We are seeing no real observed credit deterioration with our synthetic credit protection also working well.

We're seeing no real observed credit deterioration with our synthetic credit protection also working well.

Angela Anna Cross: Moving now to the business performance, starting with Barclays UK on slide 14. Profits were stable year on year with a ratio of 21% for the quarter, excluding the UK wealth transfer, income was up 1%, costs were broadly stable as our transformation plan progressed, resulting in a cost to income ratio of 56% for the quarter. Loan growth remains muted, reflecting customer caution in the current macroeconomic environment and our prudent risk positioning. The reduction in business banking assets was driven primarily by repayment of government loan scheme of $2 7 billion. Mortgage balances were stable in the quarter up 166 billion with re mortgaging still contributing most of the activity. Now looking at the UK men, which was 304 basis points. As a reminder, bek NII is around 25% of group income and one basis point of NIM equates to around $20 million of NII annualized or less than 1% of group income. Q2, we said that we expected NIM to step down from Q3, and then to stabilize into Q4. Most of the moving part played out as expected in Q3 with structural hedge tailwind continuing on mortgage margin pressure somewhat easing.

Moving now to the business performance, starting with Barclays UK on slide 14.

On the chart you can see that 30 day arrears rates are now in line with our pre pandemic experience at two 7% as we expected.

Profits were stable year on year with a 21% for the quarter.

Profits were stable year on year with <unk> of 21% for the quarter.

Excluding the UK wealth transfer income was up 1%.

Our impairment coverage also increased to nine 7% with stage two now at 35%, reflecting our expectation of higher unemployment from September the lively level of three 8% to a peak of four 4% by Q3 2024.

Excluding the UK wealth transfer income was up 1%.

Costs were broadly stable as our transformation plan progressed, resulting in a cost to income ratio of 56% for the quarter.

Loan growth remains muted, reflecting customer caution in the current macroeconomic environment and our prudent risk positioning.

Loan growth remains muted, reflecting customer caution in the current macroeconomic environment.

This would of course result in the increase there is which are reflected in our balance sheet provisioning.

Our prudent risk positioning.

The reduction in business banking assets was driven primarily by repayment of government backed loan scheme of $2 7 billion.

The reduction in business banking assets was driven primarily by repayment of government loan scheme of $2 7 billion.

Angela Anna Cross: The reduction in business banking assets was driven primarily by repayment of government's back loan scheme of $2.7 billion, mortgage balances were stable in the quarter at $166 billion with re-mortgaging still contributing most of the activity, now looking at the UK NIM, which was 304 basis points, as a reminder, BUK NII is around 25% of group income and one basis point of NIM equates to around $20 million of NII annualized or less than 0.1% of group income. Q2, we said that we expected NIM to step down from Q3, and then to stabilize into Q4. Most of the moving part played out as expected in Q3 with structural hedge tailwind continuing on mortgage margin pressure somewhat easing.

Moving onto the impairment charge on slide 13.

The impairment charge of 433 million was up around 50 million year on year, giving a loan loss rate of 42 basis points.

Mortgage balances were stable in the quarter up 166 billion with re mortgaging still contributing most of the activity.

<unk> balances were stable in the quarter up 166 billion with Remortgaging still contributing most of the activity.

Now looking at the UK men, which was 304 basis points.

Most of the Q3 charge was driven by growth in U S card balances continued seasoning of the book in line with expectations and the increase in there is what I mentioned.

As a reminder.

As a reminder, bek NII is around 25% of group income and one basis point of NIM equates to around $20 million of NII annualized or less than 1% of group income.

UK NII is around 25% of group income and one basis point of NIM equates to around $20 million of NII annualized or less than 1% of group income.

Our guidance of 50 to 60 basis points through the cycle is higher than a year to date experience. We are mindful that Q4, usually sees a higher charge in part reflecting seasonality under our expectations of U S cost growth over the holiday season.

Angela Anna Cross: At Q2, we said that we expected NIM to step down from Q3, and then to stabilize into Q4, most of the moving part played out as expected in Q3 with structural hedge tailwind continuing on mortgage margin pressure somewhat easing, the impacts of base rates was also in line given pass-through rates have increased, however, the (inaudible) NIM in Q3 was larger than expected with deposit balance and mix trends more pronounced. Average balance this quarter on quarter actually contributed a larger deposit effects than period end balances we have shown on the slide. When combined with pricing effect this reduced NIM by a net 21 basis points compared to a net six basis points in Q2. You can see that we grew deposits during the pandemic by 53 billion to. $258 billion by the end of 2020 as customers built up cash without in a current an instant access account. We anticipated that these balances would fall as customers manage their finances proactively paying down debt unlocking in high yields on their residual savings. Our current cut made appear in line with the latest bank of England industry data, but intense competitive pricing that we did not capture as much of the flows into higher rate products. We emphasize that Qt has tentative guidance is the level and mix of deposit and that remains the case. We now guide to a range of three five to 310 basis points for the full year. To help frame. This if we see similar trends in Q4 as we did in Q3, both in terms of mix and volume full year NIM would be towards the top end of this range.

Q2, we said that we expected NIM to step down from Q3, and then to stabilize into Q4.

This generally leads to higher balances on some builds an impairment under <unk> nine where increased utilization even by customers, who are making timely payments can trigger a stage two migration.

Most of the moving part played out as expected in Q3 with structural hedge tailwind continuing on mortgage margin pressure somewhat easing.

The impact of base rates was also in line given the pass through rates have increased.

The Barclays U K charge was 59 million with a loan loss rate of.

However, the step down in NIM in Q3 was larger than expected with deposit balance and mix trends more pronounced.

However, the step Diamond NIM in Q3 was larger than expected with deposit balance and mix trends more pronounced.

10 basis points and that has been the lines start see no for nearly three years.

Angela Anna Cross: Average balance this quarter on quarter actually contributed a larger deposit effect than period end balances we have shown on the slide, when combined with pricing effect this reduced NIM by a net 21 basis points, compared to a net six basis points in Q2, you can see that we grew deposits during the pandemic by 53 billion to $258 billion by the end of 2022 as customers built up cash without incurring an instant access account. We anticipated that these balances would fall as customers manage their finances proactively paying down debt unlocking in high yields on their residual savings. Our current cut made appear in line with the latest bank of England industry data, but intense competitive pricing that we did not capture as much of the flows into higher rate products. We emphasize that Qt has tentative guidance is the level and mix of deposit and that remains the case. We now guide to a range of three five to 310 basis points for the full year. To help frame. This if we see similar trends in Q4 as we did in Q3, both in terms of mix and volume full year NIM would be towards the top end of this range.

Even though our customers are experiencing affordability pressures. This is not translating into credit stress as they manage their finances proactively.

Average balance this quarter on quarter actually contributed a larger deposit effects than period end balances we have shown on slide.

Average balance this quarter on quarter actually contributed a larger deposit effects than period end balances we have shown on the slide.

The CIB had a small release.

When combined with pricing effect this reduced NIM by a net 21 basis points compared to a net six basis points in Q2.

We're seeing no real observed credit deterioration with Austin static credit protection also working well.

Moving now to the business performance, starting with Barclays UK on slide 14.

You can see that we grew deposits during the pandemic by 53 billion to two.

You can see that we grew deposits during the pandemic by 53 billion to.

Profits were stable year on year with a variety of 21% for the quarter.

<unk> hundred $68 billion by the end of 2022 as customers built up cash without in a current an instant access account.

$258 billion by the end of 2020 as customers built up cash without in a current an instant access account.

Angela Anna Cross: We anticipated that these balances would fall as customers manage their finances proactively, paying down debt and locking-in high yields on their residual savings, our current account move appear in line with the latest bank of England industry data, but intense competitive pricing meant we did not capture as much of the flows into higher rate products. We emphasize that Qt has tentative guidance is the level and mix of deposit and that remains the case. We now guide to a range of three five to 310 basis points for the full year. To help frame. This if we see similar trends in Q4 as we did in Q3, both in terms of mix and volume full year NIM would be towards the top end of this range.

Excluding the U K wealth transfer income was up 1%.

We anticipated that these balances would fall as customers manage their finances proactively paying down debt unlocking in high yield on the residual savings.

We anticipated that these balances would fall as customers manage their finances proactively paying down debt unlocking in high yields on their residual savings.

Costs were broadly stable as our transformation plans progressed, resulting in a cost to income ratio of 56% for the quarter.

Loan growth remains muted, reflecting customer caution in the current macroeconomic environment and our prudent risk positioning.

Our current cut made appear in line with the latest bank of England industry data, but intense competitive pricing that we did not capture as much of the flows into higher rate products.

The reduction in business banking assets was driven primarily by repayment of government loan scheme of $2 7 billion.

Angela Anna Cross: We emphasize that Q2 has tentative guidance if the level and mix of deposit and this remains the case, we now guide to a range of 305 to 310 basis points for the full year, to help frame this, if we see similar trends in Q4 as we did in Q3, both in terms of mix and volume full year NIM would be towards the top end of this range. Turning now to structural hedge income two thirds of which equates to Barclays UK. Slide 16 illustrates the importance of the hedge to the level and the visibility of our future net interest income the hedge is designed to reduce volatility in NII. So in an environment, where rates are peaking and eventually start to fall it will help to stabilize and then. It also provides a high degree of certainty to future NII. The chart shows that 95% of 2023, great hedge income is already locked in. And the next two years portions of locked in NII has increased by $3 million to $400 million per year. One as. As we rolled a further quarter of hedged maturities. Notional hedge balances reduced by $4 billion in Q3 to 252 billion. Given the trends, we're seeing in retail deposit we expect a notional balance to continue to reduce boralex in line with lower Hedgeable deposit. Swap rates currently at around four 5% means reinvestment rates remain well above maturing yields of Orion one to one and a half per cent for the next two years. With $50 billion to $60 billion of hedges maturing annually over this period, we expect the reinvestment effect to outweigh notional hedge decline. Turning now to consumer cards and payments on slide 17. Growth in our U S card balances and the UK wealth transfer drove a 9% increase in seats E&P income, partially offset by FX.

We emphasize that Qt has tentative guidance is the level and mix of deposit and that remains the case.

Mortgage balances were stable in the quarter up 166 billion with re mortgaging still contributing most of the activity.

We now guide to a range of three five to 310 basis points for the full year.

Now looking at the U K, and then which was 304 basis points.

To help frame. This if we see similar trends in Q4 as we did in Q3.

To help frame. This if we see similar trends in Q4 as we did in Q3, both in terms of mix and volume full year NIM would be towards the top end of this range.

As a reminder, BK NII is around 25% of group income and one basis point of NIM equates to around $20 million of NII annualized or less than 1% of group income.

In terms of mix and volume full year NIM would be towards the top end of this range.

Angela Anna Cross: Turning now to structural hedge income, two thirds of which equates to Barclays UK, clide 16 illustrates the importance of the hedge to the level and the visibility of our future net interest income, the hedge is designed to reduce volatility in NII so in an environment where rates are peaking and eventually start to fall it will help to stabilize the NIM, it also provides a high degree of certainty to future NII. The chart shows that 95% of 2023, great hedge income is already locked in. And the next two years portions of locked in NII has increased by $3 million to $400 million per year. One as. As we rolled a further quarter of hedged maturities. Notional hedge balances reduced by $4 billion in Q3 to 252 billion. Given the trends, we're seeing in retail deposit we expect a notional balance to continue to reduce boralex in line with lower Hedgeable deposit. Swap rates currently at around four 5% means reinvestment rates remain well above maturing yields of Orion one to one and a half per cent for the next two years. With $50 billion to $60 billion of hedges maturing annually over this period, we expect the reinvestment effect to outweigh notional hedge decline. Turning now to consumer cards and payments on slide 17. Growth in our U S card balances and the UK wealth transfer drove a 9% increase in seats E&P income, partially offset by FX.

Turning now to structural hedge income two thirds of which equates to Barclays UK.

Slide 16 illustrates the importance of the hedge to the level and the visibility of our future net interest income the hedge is designed to reduce volatility in NII.

Q2, we said that we expected NIM to step down from Q3, and then to stabilize into Q4.

Most of the moving part played out as expected in Q3.

So in an environment, where rates are peaking and eventually start to fall it will help to stabilize and then.

Our structural hedge tailwind continuing on mortgage margin pressure somewhat easing.

It also provides a high degree of certainty to future NII.

The impact of base rates was also in line given the pass through rates have increased.

The chart shows that 95% of 2023, great hedge income is already locked in.

Angela Anna Cross: The chart shows that 95% of 2023, great hedge income is already locked in and the next two years portions of locked-in NII had increased by $3 million to $400 million per year in stage one, as we rolled a further quarter of hedged maturities, notional hedge balances reduced by $4 billion in Q3 to 252 billion, given the trends we are seeing in retail deposits, we expect a notional balance to continue to reduce more or less in line with lower Hedgeable deposits. Swap rates currently at around four 5% means reinvestment rates remain well above maturing yields of Orion one to one and a half per cent for the next two years. With $50 billion to $60 billion of hedges maturing annually over this period, we expect the reinvestment effect to outweigh notional hedge decline. Turning now to consumer cards and payments on slide 17. Growth in our U S card balances and the UK wealth transfer drove a 9% increase in seats E&P income, partially offset by FX.

However, the step down in NIM in Q3 was larger than expected with deposit balance and mix trends more pronounced.

And the next two years portions of locked in NII has increased by $3 million to $400 million per year.

Average balance this quarter on quarter actually contributed a large I suppose the effect than period end balances we have shown on the slide.

One as.

As we rolled a further quarter of hedge maturities.

As we rolled a further quarter of hedged maturities.

Notional hedge balances reduced by $4 billion in Q3 to 252 billion.

When combined with pricing effect this reduced NIM by a net 21 basis points compared to a net six basis points in Q2.

Given the trends we are seeing in retail deposit we expect a notional balance to continue to reduce boralex in line with lower Hedgeable deposit.

Given the trends, we're seeing in retail deposit we expect a notional balance to continue to reduce boralex in line with lower Hedgeable deposit.

You can see that we grew deposits during the pandemic by $53 billion to 258 billion by the end of 2022 as customers built up cash without in a current an instant access account.

Swap rates currently at around four 5% means reinvestment rates remain well above maturing yields of Orion one to one and a half per cent for the next two years and with $50 billion to $60 billion of hedges maturing annually over this period, we expect the reinvestment.

Swap rates currently at around four 5% means reinvestment rates remain well above maturing yields of Orion one to one and a half per cent for the next two years.

Angela Anna Cross: Swap rates currently at around 4.5% means reinvestment rates remain well above maturing yields will raise 1 to 1.5% for the next two years and with $50 billion to $60 billion of hedges maturing annually over this period, we expect the reinvestment effect to outweigh notional hedge decline, turning now to consumer cards and payments on slide 17. Growth in our U S card balances and the UK wealth transfer drove a 9% increase in seats E&P income, partially offset by FX.

We anticipated that these balances would fall as customers manage their finances proactively paying down debt unlocking and high yields on the residual savings.

With $50 billion to $60 billion of hedges maturing annually over this period, we expect the reinvestment effect to outweigh notional hedge decline.

<unk> effect to outweigh notional hedge decline.

Turning now to consumer cards and payments on slide 17.

Our karnes cut moves appear in line with the latest bank of England industry data, but intense competitive pricing, but we did not capture as much of the flows into higher rate products.

Turning now to consumer cards and payments on slide 17.

Growth in our U S card balances and the UK wealth transfer drove a 9% increase in seats DNP income, partially offset by FX.

Angela Anna Cross: Growth in our US card balances and the UK wealth transfer drove a 9% increase in CC&P income, partially offset by F, We grew US card balances by 11% year on year to $30 billion dollars, in the private bank, total invested assets were %105 billion up 27%, excluding UK wealth as clients moved deposits to money market funds and other investments with us. Payment income was modestly down year on year of customers adjusted their spending to lower volume and central items, which have lower margins. Testing, the 9% increase in payments processed. <unk> was nine 6%, reflecting both higher income on our pricing cost year on year as we grow these businesses. Moving on to the CIB. CIB income fell 6% year on year in Sterling terms in part, reflecting the stronger Sterling U S dollar rate. A more stable elements of our CIB income performed as we expected and market the relative stability from our combined fixed income and equity financing businesses was visible again compared to the downward move in intermediation. Corporate delivered strong year on year income growth, reflecting higher rates and transaction banking and the non repeat of leveraged finance Mark This time last year and corporate lending as. As you heard from Venkat markets are down 13% in dollars versus a record third quarter in 2022. SEC fell 19% in dollars as we benefited the last from U S rates volatility compared to the volatility in the U K. This time last year. Fixed income financing income reduced due to a normalization of inflation linked benefit. I've mentioned previously. And we are smaller and securitized product, which was an area of strength for some of our peers equities was up 3% in dollars. Derivatives and cash performance was partially offset by equity financing of <unk>.

Growth in our U S card balances and the UK wealth transfer drove a 9% increase in seats E&P income, partially offset by FX.

We emphasize that Q T. How sensitive garden is the level and mix of deposit and this remains the case.

We grew U S card balances by 11% year on year to $30 billion.

We now guide to a range of 305 to 310 basis points for the full year.

In the private bank total invested assets were 105 billion up 27%, excluding UK wealth as clients need deposit to money market funds and other investments with us.

In the private bank total invested assets were 105 billion up 27%, excluding UK wealth as clients need deposits to money market funds and other investments with us.

To help frame. This if we see similar trends in Q4 as we did in Q3, both in terms of mix and volume fully and then would be towards the top end of this range.

Angela Anna Cross: Payment income was modestly down year on year as customers adjusted their spending to lower volume and central items, which have lower margins, off-testing the 9% increase in payments processed. RoTE was 9.6%, reflecting both higher income and operating costs year on year as we grow these businesses. Moving on to the CIB. CIB income fell 6% year on year in Sterling terms in part, reflecting the stronger Sterling U S dollar rate. A more stable elements of our CIB income performed as we expected and market the relative stability from our combined fixed income and equity financing businesses was visible again compared to the downward move in intermediation. Corporate delivered strong year on year income growth, reflecting higher rates and transaction banking and the non repeat of leveraged finance Mark This time last year and corporate lending as. As you heard from Venkat markets are down 13% in dollars versus a record third quarter in 2022. SEC fell 19% in dollars as we benefited the last from U S rates volatility compared to the volatility in the U K. This time last year. Fixed income financing income reduced due to a normalization of inflation linked benefit. I've mentioned previously. And we are smaller and securitized product, which was an area of strength for some of our peers equities was up 3% in dollars. Derivatives and cash performance was partially offset by equity financing of <unk>.

Payment income was modestly down year on year of customers adjusted their spending to lower volume and central items, which have lower margins offsetting the 9% increase in payments processed.

Payment income was modestly down year on year of customers adjusted their spending to lower volume and central items, which have lower margins.

Turning now to structural hedge income two thirds of which accrues to Barclays UK.

Testing, the 9% increase in payments processed.

Slide 16 illustrates the importance of the hedge to the level and the visibility of our future net interest income the hedge is designed to reduce volatility in NII. So in an environment where rates are peaking and eventually start to fall it will help to stabilize and then.

<unk> was nine 6%, reflecting both higher income on our pricing cost year on year as we grow these businesses.

Angela Anna Cross: Moving on to the CIB, CIB income fell 6% year on year in Sterling terms, in part reflecting the stronger Sterling/US dollar rate, the more stable elements of our CIB income performed as we expected, in market the relative stability from our combined fixed income and equity financing businesses was visible again, compared to the downward move in intermediation and Corporate delivered strong year on year income growth, reflecting higher rates in transaction banking and the non-repeat of leveraged financed Mark this time last year and corporate lending as. As you heard from Venkat markets are down 13% in dollars versus a record third quarter in 2022. SEC fell 19% in dollars as we benefited the last from U S rates volatility compared to the volatility in the U K. This time last year. Fixed income financing income reduced due to a normalization of inflation linked benefit. I've mentioned previously. And we are smaller and securitized product, which was an area of strength for some of our peers equities was up 3% in dollars. Derivatives and cash performance was partially offset by equity financing of <unk>.

Moving on to the CIB.

CIB income fell 6% year on year in Sterling terms in part, reflecting the stronger Sterling U S dollar rate.

It also provides a high degree of certainty to future NII.

More stable elements of our CIB income performed as we expected and market the relative stability from our combined fixed income and equity financing businesses was visible again compared to the downward move in intermediation.

A more stable elements of our CIB income performed as we expected and market the relative stability from our combined fixed income and equity financing businesses was visible again compared to the downward move in intermediation.

The chart shows that 95% of 2023 gross hedge income is already locked in.

On the next two years portions of locked in NII have increased by three to 400 million per year H one.

And corporate delivered strong year on year income growth, reflecting higher rates and transaction banking and the non repeat of leveraged finance Mark This time last year and corporate lending.

Corporate delivered strong year on year income growth, reflecting higher rates and transaction banking and the non repeat of leveraged finance Mark This time last year and corporate lending as.

As we rolled a further quarter of hedged maturity.

Notional hedge balances reduced by 4 billion in Q3 to 252 billion.

<unk> heard from Venkat markets was down 13% in dollars.

As you heard from Venkat markets are down 13% in dollars versus a record third quarter in 2022.

Given the trends we're seeing in retail deposits, we expect the notional balance to continue to reduce more or less in line with lower hedgeable deposits.

Our record third quarter in 2022.

Angela Anna Cross: SEC fell 19% in dollars as we benefited the last from US rates volatility, compared to guild volatility in the UK this time last year, fixed income, financing income reduced due to a normalization of inflation-linked benefit as we have mentioned previously. Arrears flow and securitized product, which was an area of stress for some of our peers, equities was up 3% in dollars as Derivatives and cash performance was partially offset by equity financing as client balances continued to grow, albeit our spreads tightened. Banking fees were down 24% year on year with a better performance in ECM, not sufficient to offset weaker DCM and advisory given the relative scale of those businesses for us.

SEC fell 19% in dollars.

SEC fell 19% in dollars as we benefited the last from U S rates volatility compared to the volatility in the U K. This time last year.

[noise] swap rates currently it's around four 5% means reinvestment rates remain well above maturing yields.

How can we benefited the last from U S rates volatility compared to volatility in the U K. This time last year.

One to one and a half per cent for the next two years and with 50 to 60 billion of hedges maturing annually over this period, we expect the reinvestment effect to outweigh notional hedge decline.

Fixed income financing income reduced due to a normalization of inflation linked benefit.

As we have mentioned previously.

I've mentioned previously.

And we are smaller and securitized product, which was an area of strength for some of our peers equities was up 3% in dollars.

Turning now to consumer cards and payments on slide 17.

Riveted on cash performance was partially offset by equity financing.

Derivatives and cash performance was partially offset by equity financing of <unk>.

Growth in our U S card balances and the UK wealth transfer drove a 9% increase in seats E&P income, partially offset by FX. We grew U S card balances by 11% year on year to $30 billion.

Of client balances continued to grow, albeit our spreads tightened.

Client balances continued to grow, albeit our spreads tightened.

Angela Anna Cross: Banking fees were down 24% year on year with a better performance in ECM, not sufficient to offset weaker DCM and advisory given the relative scale of those businesses for us, combined with stable costs, and a small impairment release RoTE was 9.2%, which even in the next quarter like this one, does not reflect the potential of our franchise. CIB are the rates were relatively stable with the increase to $219 billion in Q2, largely driven by FX. Yeah. Turning now to capital funding and liquidity starting on slide 19. We continue to maintain a well capitalized liquid balance sheet with diverse sources of funding and a significant excess of deposits overlying. Looking at these metrics in more detail starting with capital on slide 20. Our CET one ratio increased around 20 basis points to 14% attributed. Attributable profit generated 37 basis points totaling 128 basis points over the last three quarters. We indicated previously our MDA hurdle increased to 11, 8% from the increase in the UK counter cyclical buffer and we continue to operate with ample headroom. Level three one remains at proposal stage, we continue to guide to the day, one <unk> impact to be at the lower end of the 5% to 10% range. This reflects what we see from all the proposals across the jurisdictions, we operate in including the U S. As a reminder, the Pra's rules remain the most relevant on a consolidated basis.

Angela Anna Cross: fees were down 24% year on year with a better performance in ECM, not sufficient to offset weaker DCM and advisory given the relative scale of those businesses for us.

Banking fees were down 24% year on year with a better performance in ECM, not sufficient to offset weaker DCM and advisory given the relative scale of those businesses for us.

In the private bank total invested assets were 105 billion up 27%, excluding UK wealth as clients need deposits to money market funds and other investments with us.

Combined with stable costs, and a small impairment release right T was nine 2%, which even in the next quarter like this one does not reflect the potential of our franchise.

Payment income was modestly down year on year of customers adjusted their spending to lower volume and central items, which have lower margins offsetting the 9% increase in payments processed.

Angela Anna Cross: CIB RDB rates were relatively stable with the increase to $219 billion in Q2, largely driven by FX, turning now to capital funding and liquidity starting on slide 19. We continue to maintain a well capitalized liquid balance sheet with diverse sources of funding and a significant excess of deposits overlying. Looking at these metrics in more detail starting with capital on slide 20. Our CET one ratio increased around 20 basis points to 14% attributed. Attributable profit generated 37 basis points totaling 128 basis points over the last three quarters. We indicated previously our MDA hurdle increased to 11, 8% from the increase in the UK counter cyclical buffer and we continue to operate with ample headroom. Level three one remains at proposal stage, we continue to guide to the day, one <unk> impact to be at the lower end of the 5% to 10% range. This reflects what we see from all the proposals across the jurisdictions, we operate in including the U S. As a reminder, the Pra's rules remain the most relevant on a consolidated basis.

Angela Anna Cross: CIB RDB rates were relatively stable with the increase to $219 billion in Q2, largely driven by FX.

CIB are the rates were relatively stable with the increase to $219 billion in Q2, largely driven by FX.

Angela Anna Cross: Turning now to capital funding and liquidity starting on slide 19. We continue to maintain a well capitalized liquid balance sheet with diverse sources of funding and a significant excess of deposits overlying. Looking at these metrics in more detail starting with capital on slide 20. Our CET one ratio increased around 20 basis points to 14% attributed. Attributable profit generated 37 basis points totaling 128 basis points over the last three quarters. We indicated previously our MDA hurdle increased to 11, 8% from the increase in the UK counter cyclical buffer and we continue to operate with ample headroom. Level three one remains at proposal stage, we continue to guide to the day, one <unk> impact to be at the lower end of the 5% to 10% range. This reflects what we see from all the proposals across the jurisdictions, we operate in including the U S. As a reminder, the Pra's rules remain the most relevant on a consolidated basis.

Angela Anna Cross: Turning now to capital funding and liquidity starting on slide 19.

Roshi with nine 6%, reflecting both higher income on our pricing cost year on year as we grow these businesses.

Yeah.

Turning now to capital funding and liquidity starting on slide 19.

Angela Anna Cross: We continue to maintain a well capitalized and liquid balance sheet, with diverse sources of funding and a significant excess of deposits over loans, looking at these metrics in more detail, starting with capital on slide 20, our CET1 ratio increased around 20 basis points to 14%, attributable profit generated 37 basis points totaling 128 basis points over the last three quarters. We indicated previously our MDA hurdle increased to 11, 8% from the increase in the UK counter cyclical buffer and we continue to operate with ample headroom. Level three one remains at proposal stage, we continue to guide to the day, one <unk> impact to be at the lower end of the 5% to 10% range. This reflects what we see from all the proposals across the jurisdictions, we operate in including the U S. As a reminder, the Pra's rules remain the most relevant on a consolidated basis.

We continue to maintain a well capitalized and liquid parlance sheets with diverse sources of funding and a significant excess of deposits overlying.

Moving on to the CIB.

We continue to maintain a well capitalized liquid balance sheet with diverse sources of funding and a significant excess of deposits overlying.

CIB income fell 6% year on year in Sterling terms in part, reflecting the stronger Sterling U S dollar rate.

Looking at these metrics in more detail starting with capital on slide 20.

The more stable elements of our CIB income performed as we expected and markets the relative stability from our combined fixed income and equity financing businesses wasn't visible again compared to the downward move in the intermediation.

Our CET one ratio increased around 20 basis points to 14% attributes.

Our CET one ratio increased around 20 basis points to 14% attributed.

Attributable profit generated 37 basis points.

Attributable profit generated 37 basis points totaling 128 basis points over the last three quarters.

<unk> hundred 28 basis points over last three quarters.

Angela Anna Cross: As we indicated previously, our MDA hurdle increased to 11.8% from the increase in the UK counter cyclical buffer and we continue to operate with ample headroom, (inaudible) of 3.1 remains at proposal stage, we continue to guide to the day one RWA impact to be at the lower end of the 5% to 10% range, this reflects what we see from all the proposals across the jurisdictions we operate in, including the US, as a reminder, the TRA's rules remain the most relevant on a brief consolidated basis. Whether or not the decline in the U K deposits that we discussed earlier was more than offset this quarter by inflows from global corporate.

Angela Anna Cross: As we indicated previously, our MDA hurdle increased to 11.8% from the increase in the UK counter cyclical buffer and we continue to operate with ample headroom, (inaudible) of 3.1 remains at proposal stage, we continue to guide to the day one RWA impact to be at the lower end of the 5% to 10% range, this reflects what we see from all the proposals across the jurisdictions we operate in, including the US, as a reminder, the PRA's rules remain the most relevant on a brief consolidated basis.

On corporate delivered strong year on year income growth, reflecting higher rates and transaction banking and the non repeat of leveraged finance Mark This time last year and corporate lending.

We indicated previously our MDA hurdle increased to 11, 8% from the increase in the UK counter cyclical buffer and we continue to operate with ample headroom.

As you heard from Venkat markets are down 13% in dollars versus a record third quarter in 2022.

<unk> three one remains at proposal stage, we continued to guide to the day one <unk>.

Level three one remains at proposal stage, we continue to guide to the day, one <unk> impact to be at the lower end of the 5% to 10% range.

Do they impact to be at the lower end of the 5% to 10% range.

Beck fell 19% in dollars as we benefited the last from U S rates volatility compared to guilt volatility in the U K. This time last year.

This reflects what we see from all the proposals across the jurisdictions, we operate in including the U S.

As a reminder, the Pra's rules remain the most relevant on a consolidated basis.

Fixed income financing income reduced due to a normalization of inflation linked benefit.

Our total deposit position remained stable as we have a diverse deposit franchise across consumer UK and international corporate customers.

I've mentioned previously.

And we have smaller in securitized products, which was an area of strength for some of us.

Angela Anna Cross: Our total deposits division remains stable as we have a diverse deposit franchise across consumer, UK and international corporate costumers, whether or not the decline in the UK deposits that we discussed earlier was more of an offset this quarter by inflows from global corporate and this places us in a strong position to manage seasonal fluctuations that we often see around yearend from balances held for financial sector clients. Our LCR of 179% represents a surplus of 116 billion above our minimum regulatory requirements. We continue to be comfortable with our liquidity position and we have demonstrated its robustness throughout the market disruption earlier this year. So concluding with our outlook, we are evaluating options to reduce structural costs to help drive future return, which may result in material additional charges in Q4 impacting this year statutory performance. Excluding any such structural cost actions, we continue to target <unk> above 10% in 2023, and a cost income ratio in the low six days. Our loan loss rate guidance remains 50 to 60 basis points. This is higher than the year to date experience, allowing for some potential seasonality in U S cards in Q4. As of now we are not seeing anything that concerns us and we would view the guidance as a through the cycle range.

Whether or not the decline.

Whether or not the decline in the U K deposits that we discussed earlier was more than offset this quarter by inflows from global corporate.

Equities was up 3% in dollars odd derivatives and cash performance was partially offset by equity financing of.

U K deposits that we discussed earlier was more than offset this quarter by inflows from global corporate.

Client balances continued to grow, albeit our spreads tightened.

Unless places us in a strong position to manage seasonal fluctuations that we often see around yearend from balances held for financial sector clients.

Banking fees were down 24% year on year with a better performance in ECM, not sufficient to offset weaker DCM and advisory given the relative scale of those businesses for us.

Our LCR of 159% represents a surplus of 116 billion above our minimum regulatory requirements. We continue to be comfortable with our liquidity position and we have demonstrated its robustness throughout the market disruption.

Our LCR of 179% represents a surplus of 116 billion above our minimum regulatory requirements. We continue to be comfortable with our liquidity position and we have demonstrated its robustness throughout the market disruption earlier this year.

Angela Anna Cross: Our LCR of 159% represents a surplus of 116 billion above our minimum regulatory requirements, we continue to be comfortable with our liquidity position and we have demonstrated its robustness throughout the market disruption earlier this year so concluding with our outlook, we are evaluating options to reduce structural costs to help drive future return, which may result in material additional charges in Q4, impacting this year statutory performance. Excluding any such structural cost actions, we continue to target <unk> above 10% in 2023, and a cost income ratio in the low six days. Our loan loss rate guidance remains 50 to 60 basis points. This is higher than the year to date experience, allowing for some potential seasonality in U S cards in Q4. As of now we are not seeing anything that concerns us and we would view the guidance as a through the cycle range.

Combined with stable costs, and a small impairment release right T was nine 2%, which even in the next quarter like this one does not reflect the potential of our franchise.

They are this year.

So concluding with our outlook, we are evaluating options to reduce structural costs to help drive future return, which may result in material additional charges in Q4 impacting this year's statutory performance.

CIB at the rates were relatively stable with the increase to 219 billion on Q2, largely driven by FX.

Turning now to capital funding and liquidity starting on slide 19.

Angela Anna Cross: Excluding any such structural cost actions, we continue to target RoTE above 10% in 2023, and a cost income ratio in the low 60's, our loan loss rate guidance remains 50 to 60 basis points, this is higher than the year to date experience, allowing for some potential seasonality in US cards in Q4, as of now we are not seeing anything that concerns us and we would view the guidance as a through the cycle range. Our CET one ratio was at the top end of our target range and strong capital generation in the year to date supports our commitment to return capital to shareholders. We will provide more detail in the investor update of our full year results in February, including our capital allocation priorities and revised financial targets. Thank you for listening we will now take your questions and as usual please limit yourself to two comparison, so we get around to everybody.

Excluding any such structural cost actions, we continue to target <unk> above 10% in 2023, and a cost income ratio in the low six states.

Excluding any such structural cost actions, we continue to target <unk> above 10% in 2023, and a cost income ratio in the low six days.

We continue to maintain a well capitalized liquid balance sheet with diverse sources of funding and have significant excess of deposits over alone.

Our loan loss rate guidance remains 50 to 60 basis points. This is higher than the year to date experience, allowing for some potential seasonality in U S cards in Q4.

Looking at these metrics in more detail starting with capital in slide 20.

Our CET one ratio increased around 20 basis points to 14%.

Attributable profit generated 37 basis points totaling 128 basis points over the last three quarters as.

As of now we are not seeing anything that concerns us and we would view the guidance as a through the cycle range.

As we indicated previously our MDA hurdle increased to 11, 8% from the increase in the U K countercyclical buffer and we continue to operate with ample headroom, whilst Basel III. One remains at proposal stage. We continue to guide to the day, one ought to be they impact to be at the low.

Angela Anna Cross: Our CET1 ratio was at the top end of our target range and strong capital generation in the year to date supports our commitment to return capital to shareholders, We will provide more detail at the investor update at our full year results in February, including our capital allocation priorities and revised financial targets, thank you for listening we will now take your questions and as usual, please limit yourself to two per person, so we get around to everybody.

Our CET one ratio was at the top end of our target range and strong capital generation in the year to date supports our commitment to return capital to shareholders.

We will provide more detail in the investor update.

We will provide more detail in the investor update of our full year results in February, including our capital allocation priorities and revised financial targets.

Full year results in February, including our capital allocation priorities and revised financial targets.

Sure and it's a 5% to 10% range.

This reflects what we see from all the proposals across the jurisdictions, we operate in including the U S.

Thank you for listening we will now take your questions and as usual please limit yourself to two comparison, so we get around to everybody.

As a reminder, the Pra's rules remain the most relevant on a group consolidated basis.

If you wish to ask a question. Please press star one.

Operator: If you wish to ask a question, please press star followed by one on the (inaudible) keypad, if you changed your mind and wish to delete your question, please press star followed by two. Our first question today comes from Alvaro Serrano from Morgan Stanley, please go ahead. Your line is now open.

Our total deposit position remained stable as we have a diverse deposit franchise across consumer UK and international corporate customers.

Pat.

Came to mind I'm, assuming your question. Please press star two.

Our first question today comes from Guy.

Whether or not the decline in the U K deposits that we discussed earlier was more than offset this quarter by inflows from global corporate.

So Ronny from Morgan Stanley. Please go ahead. Your line is now open.

Hi, good morning.

Alvaro Serrano Saenz de Tejada: Hi, Good morning couple of questions please on, the first one, On UK NIM, your guidance, I think I understood the top end of the guidance the 310 assumes it's similar to deposit trends as in Q3, I guess your guidance officially said that things could get worse in Q4 in terms of mix and volumes, can you maybe sort of explain what happened during Q3 and why have You given yourself some room with deteriorating trends, I think Most of the guidance from your peers and maybe even yourselves would, once the rates highs were over you will see much more stable deposit so I'm interested to see why you left yourself some room for deterioration and second point. The second question is on the restructuring charge in Q4. Okay. 10%. <unk> gone to us now. This restructuring charge. Question is how much is that. Go ahead. With a payout with buybacks that you may announce at the end of the year because of the full given the provisions again much better than expected. Yes. Thank you ruud to cover potential restructuring without going into your <unk> guidance, but that doesn't seem to be the case. How should we think about year end distribution. Restructuring costs may be surprising. Helpful. Thank you.

Couple of questions. Please the first one.

And this places us in a strong position to manage seasonal fluctuations that we often see Iran's yearend from balances held for financial sector client.

First on UK NIM.

On UK NIM.

Guidance.

I think I understood.

The top end of the guidance the 310 assumes a similar.

The top end of the guidance the 310 assumes that similar to.

So we can fully trend as in Q3.

Trends as in Q3.

I guess your guidance officially.

Says that things could get worse in Q4 in terms of mix and volumes can you maybe sort of explain what happened during Q3 and why.

Things could get worse in Q4 in terms of mix and volumes can you maybe sort of explain what happened during Q3 and why.

Giving yourself some room, so deteriorating trends.

You've given yourself some room with deteriorating trends.

I think.

So concluding with our outlook.

I think.

Most of the guidance.

Most of the.

We are evaluating options to reduce structural costs to help drive future returns, which may result in material additional charges in Q4 impacting this year's statutory performance.

Guidance from from your peers.

And maybe even yourselves.

Once the rate.

Alex we're over.

You'll see much more stable deposit sort of interested to see why you left yourself some room for deterioration and second point. The second question is on the restructuring charge in Q4.

You will see much more stable deposit sort of interested to see why you left yourself some room for deterioration and second point. The second question is on the restructuring charge in Q4.

Excluding any such structural cost actions, we continue to target rosy about 10% in 2023, and a cost income ratio in the low 60.

Alvaro Serrano Saenz de Tejada: The second question is on the restructuring charge in Q4, okay Your 10% RoTE guidance is now extra to the restructuring charge, question is how much is that going to intervene with a payout and with buybacks that you may announce at the end of the year because the full, given that provisions are going much better than expected, you're going to have plenty of room to cover potential restructuring without going into your RoTE guidance, but that doesn't seem to be the case so maybe how should we think about year end distribution, also how are you going (inaudible) restructuring costs may be surprising (inaudible) Thank you.

Okay.

<unk> gone to now.

10%.

<unk> gone to us now.

This restructuring charge.

Our loan loss rate guidance remains 50 to 60 basis points. This is higher than the year to date experience, allowing for some potential seasonality in U S cards in Q4.

This restructuring charge.

Is that how much is that.

Question is how much is that.

Going to interfere with the payout.

Go ahead.

With a payout with buybacks that you may announce at the end of the year because of the full given the provisions again much better than expected.

Buybacks that you may announce at the end of the year because of the full given.

Given the provisions again much better than expected.

As of now we are not seeing anything that concerns us and we would view the guidance as a through the cycle range.

Yes.

Thank you ruud to cover potential restructuring without going into your <unk> guidance, but that doesn't seem to be the case.

Our CET one ratio was at the top end of our target range and strong capital generation in the year to date supports our commitment to return capital to shareholders.

Maybe how should we think about year end distribution.

How should we think about year end distribution.

Got it.

Restructuring costs may be surprising.

Total restructuring costs may be surprising.

Short term it's helpful. Thank you.

Helpful. Thank you.

We will provide more detail and then back to the uptake of our full year results in February , including our capital allocation priorities and revised financial targets.

Thank you <unk> good morning, and thanks for starting off a question I can I'll take the first one and then I'll.

Angela Anna Cross: Thank you Alvaro, good morning and thanks for starting off a questioning, I'll take the first one and then I'll pass to Venkat for the second half of that, so let me just talk through UK NIM in the third quarter and just to level set and reiterate what I said on the call, a basis point of NIM is $20 million annualized, less than 0.1% of group income. What we said at Q2. Was that we expected NIM to step down in the third quarter and somewhat stabilized into the fall. There were a few moving parts within that much. Much of it is played out as we expected. So we've seen a lessening of the impact of mortgage churn. We've seen a continued tailwind from the structural hedges. Actually deposit pricing played out roughly as we expected and you can see that that's negative in the quarter for the first time as we indicated it might be. What's really different. Is the movement in deposit. What I said on the call earlier. Is that actually the movement in average deposit is a bit more significant in the quarter and might indicate. And whilst we saw very similar trends to the overall bank of England, amazement and current accounts through the quarter. We captured less of that into fixed term deposits than we might have expected. That related purely to the intensity of competition that we saw. During the quarter. We intend to that particular point. And it's really that made the difference so I would say the positive behavior. He has some more intensified in response to pricing. Previously, we said that we expected that to be more stable in Q4 and up simply because in Q4, you typically see a deposit stabilization three pre Christmas we now no longer anticipate that just because of these competitive dynamics and thats really.

Thanks for starting off a question I can I'll take the first one and then I'll pass to <unk> for the second half of that.

<unk> for the second half of that.

Thank you for listening we will now take your questions and as usual please limit yourself to two per person so we get around to everybody.

So.

Let me just talk three UK NIM in the third quarter and just to level set and reiterate what I said on the call a basis point amendment $20 million annualized less than 1% of group income.

Let me just talk three you came in in the third quarter and just to level set and reiterate what I said on the call a basis point amendment $20 million annualized less than 1% of group income.

If you wish to ask a question. Please press star followed by one missing keypad.

Can you remind us I'm assuming your question. Please press star two.

And what we said at Q2.

Was that we expected NIM to step down.

Was that we expected NIM to step down in the third quarter and somewhat stabilized into the fall.

Angela Anna Cross: What we said at Q2, was that we expected NIM to step down in the third quarter and somewhat stabilize into the 4th, there were a few moving parts within that and much of it has played out as we expected so we've seen a lessening of the impact of mortgage churn, We've seen a continued tailwind from the structural hedges, actually deposit pricing played out roughly as we expected and you can see that that's negative in the quarter for the first time as we indicated it might be. What's really different. Is the movement in deposit. What I said on the call earlier. Is that actually the movement in average deposit is a bit more significant in the quarter and might indicate. And whilst we saw very similar trends to the overall bank of England, amazement and current accounts through the quarter. We captured less of that into fixed term deposits than we might have expected. That related purely to the intensity of competition that we saw. During the quarter. We intend to that particular point. And it's really that made the difference so I would say the positive behavior. He has some more intensified in response to pricing. Previously, we said that we expected that to be more stable in Q4 and up simply because in Q4, you typically see a deposit stabilization three pre Christmas we now no longer anticipate that just because of these competitive dynamics and thats really.

Our first question today comes from.

In the third quarter and somewhat stabilized into the fall.

Serrano from Morgan Stanley . Please go ahead. Your line is now open.

There were a few moving parts within much of it is played out as we expected so we.

There were a few moving parts within that much.

Hi, Good morning couple of questions. Please first one on UK NIM.

Much of it is played out as we expected. So we've seen a lessening of the impact of mortgage churn.

We've seen a lessening of the impact of mortgage churn.

<unk> guidance.

I think I understood.

We've seen a continued tailwind from the structural hedges.

The top end of our guidance the 310 assumes a similar.

Actually deposit pricing played out roughly as we expected and you can see that that's negative in the quarter for the first time as we indicated it might be.

Sure.

And as in Q3.

I guess your guidance implicitly says that things could get worse in Q4 in terms of make some volumes can you maybe sort of explain what happened during Q3 and why.

What's really different.

Is the maintenance and deposit.

Is the movement in deposit.

Are you, giving yourself some room, so deteriorating trends.

What I said on the call earlier.

Angela Anna Cross: What's really different is the movement in deposit, what I said on the call earlier was that actually the movement in average deposit is a bit more significant than the quarter end might indicate and whilst we saw very similar trends to the overall bank of England movements in current accounts through the quarter, we captured less of that into fixed term deposits than we might have expected to and related purely to the intensity of competition that we saw during the quarter and very intend to that particular point. And it's really that made the difference so I would say the positive behavior. He has some more intensified in response to pricing. Previously, we said that we expected that to be more stable in Q4 and up simply because in Q4, you typically see a deposit stabilization three pre Christmas we now no longer anticipate that just because of these competitive dynamics and thats really.

Angela Anna Cross: What's really different is the movement in deposit, what I said on the call earlier was that actually the movement in average deposit is a bit more significant than the quarter end might indicate and whilst we saw very similar trends to the overall bank of England movements in current accounts through the quarter, we captured less of that into fixed term deposits than we might have expected to and that related purely to the intensity of competition that we saw during the quarter and very intend to that particular point and it's really that that made the difference, so I would say depositor behavior that has some more intensified in response to pricing.

I think.

The actually the movement in average deposit is a bit more significant in the quarter and Mike.

Is that actually the movement in average deposit is a bit more significant in the quarter and might indicate.

Most of the.

Guidance from from your peers.

And maybe even yourselves.

<unk> indicates.

Once the rate hikes.

Alex we're over.

Whilst we saw very similar trends to the overall bank of England, amazement and current accounts through the quarter.

And whilst we saw very similar trends to the overall bank of England, amazement and current accounts through the quarter.

You would see much more stable deposit sort of interested to see why you've let yourself some room for deterioration and second point. The second question is on the restructuring charge in Q4.

We captured less of that into fixed term deposits than we might have expected K im not related purely to the intensity of competition that we saw.

We captured less of that into fixed term deposits than we might have expected.

Okay.

<unk> gotten to know this.

That related purely to the intensity of competition that we saw.

Restructuring charge.

Is that how much is that.

During the quarter.

Going to interfere with the payout.

It's very intense that particular point and it's really that makes a difference. So I would say the positive behavior that has some more intensified in response to pricing.

We intend to that particular point.

Buybacks that you may announce at the end of the year because of this.

And it's really that made the difference so I would say the positive behavior.

Angela Anna Cross: And it's really that made the difference so I would say the positive behavior. He has some more intensified in response to pricing. Previously, we said that we expected that to be more stable in Q4 and up simply because in Q4, you typically see a deposit stabilization three pre Christmas we now no longer anticipate that just because of these competitive dynamics and thats really.

Angela Anna Cross: And it's really that made the difference so I would say the positive behavior. He has some more intensified in response to pricing.

So given the provisions are going much better than expected.

He has some more intensified in response to pricing.

Yeah.

Two room to cover potential restructuring without going into your guidance, but that doesn't seem to be the case. So maybe how should we think about year end distribution, obviously calories going better.

Previously, we said that we expected that to be more stable in Q4 and up simply because in Q4, you typically see.

Previously, we said that we expected that to be more stable in Q4 and up simply because in Q4, you typically see a deposit stabilization three pre Christmas we now no longer anticipate that just because of these competitive dynamics and thats really.

Angela Anna Cross: Previously, we said that we expected that to be more stable in Q4 and up simply because in Q4, you typically see a deposit stabilization pre-Christmas we now no longer anticipate that just because of these competitive dynamics and thats really what's causing us to change that outlook, We're not saying that it will be better or worse in the fourth quarter, I think what we are saying is that this customer deposit behavior has been relatively difficult to predict and that's why we're giving you a range, indicating to you that if we saw something similar, that would be towards the top of that range, that's the reason for the change in guidance, Venkat. Thanks. Yes. Thanks.

Angela Anna Cross: Previously, we said that we expected that to be more stable in Q4 and not simply because in Q4, you typically see a deposit stabilization pre-Christmas we now no longer anticipate that just because of these competitive dynamics and thats really what's causing us to change that outlook. We're not saying that it will be better or worse in the fourth quarter, I think what we are saying is that this customer deposit behavior has been relatively difficult to predict and that's why we're giving you a range, indicating to you that if we saw something similar, that would be towards the top of that range, that's the reason for the change in guidance, Venkat.

Restructuring also maybe sizing.

That stabilization three pre Christmas we now no longer anticipate that just because of these competitive dynamics and that's really what's causing us to.

Restructuring costs will be helpful. Thank you.

Thank you <unk> good morning.

What's causing us to.

Thanks for starting off the question I'll take the first one and then I'll pass to thank hat for the second half of that so.

To change that outlook.

Angela Anna Cross: We're not saying that it will be better or worse in the fourth quarter, I think what we are saying is that this customer deposit behavior has been relatively difficult to predict and that's why we're giving you a range, indicating to you that if we saw something similar, that would be towards the top of that range, that's the reason for the change in guidance, Venkat.

We're not saying that it will be better or worse in the fourth quarter.

I think what we are saying is that this customer deposit behavior has been.

Let me just talk three UK NIM in the third quarter and just to level set and reiterate what I said on the call a basis point amendment $20 million annualized less than 1% of group income.

Relatively difficult to predict.

That's why we're giving you a range, indicating to you that if we saw something similar that would be towards the top of that range.

And what we said at Q2.

That's the reason for the change in guidance. Thanks.

Was that we expected NIM to step down in the third quarter and somewhat stabilized into the food.

That's the reason for the change in guidance. Thanks.

Yes. Thanks.

Coimbatore Sundararajan Venkatakrishnan: Yeah, Thanks Anna, and overall, I'm sure you're sort of focused through the presentation, but just to add on on the NIM for one one minute, overall group deposits as NSF fee you can name as part of our overall NIM or overall deposits grew by 7 billion quarter on quarter. NII is up about 6% year on year at $3 2 billion and limits us to $3, 98% at the group levels against 13 bps higher so. So think about it in the larger context, and also coming back to the restructuring charge two things I would say. One is you should think of this structural cost section. In part of the Investor update, which we will provide in February so what this is.

Coimbatore Sundararajan Venkatakrishnan: Yeah, Thanks Anna, and overrun show you sort of compass through the presentation, but just to add on on the NIM point for one, one minute, overall group deposits as Anna said fee you can name as far far overall NIM our overall deposits grew by 7 billion quarter on quarter and our NII is up about 6% year on year at $3.2 billion and NIM is up to $3.98% at the group levels again setting is higher so, to think about it in the larger context,

And.

Overall, I'm sure you're sort of corpus through the presentation, but just to add on on the NIM for one one minute.

However, I'm sure you're sort of corpus through the presentation, but just to add on the NIM for one one minute.

There were a few moving parts within that and much of it is played out as we expected. So we've seen a lessening of the impact of mortgage churn.

Overall group deposits as NSF fee you can name as part of our overall NIM or overall deposits grew by 7 billion quarter on quarter.

We've seen a continued tailwind from structural hedges.

NII is up about 6% year on year at $3 2 billion and limits us to $3, 98% at the group levels against 13 bps higher so.

Actually deposit pricing played out roughly as we expected and you can see that that's negative in the quarter for the first time as we indicated it might face.

So think about some of the larger context and also coming back to the restructuring charge two things I would say.

So think about it in the larger context, and also coming back to the restructuring charge two things I would say.

What's really different is.

The movement in deposit.

Coimbatore Sundararajan Venkatakrishnan: And also, coming back to the restructuring charge, two things I would say, one is you should think of this structural cost section as in part of the Investor update which we will provide in February, so what this is is, we have to announce it now because as we work through it We will likely take a choice in Q4, that's why we announced it now, but you should think of it as not something related to a quarter or the last two quarters, but part of the larger restructured, structural improvement of efficiency and productivity for the bank. For your specific question. What I would say its a few things number one is that we very deliberately stock. This quarter, our strong capital position of 14%. And we've got is capital generation of about 130 basis points of CET, one ratio year to date. This underpins our ability to return capital to shareholders as far as our desire. Completed a $750 million buyback. First half and so total distributions so far this year of $1 2 billion, which is about 30% higher versus the first half of last year. And this really reflects our commitment to return capital to shareholders. We spoke about the efficiencies, we're driving across the group equally. You should note that we are comfortable to operate in the full range of 13% to 14%.

One is.

What I said on the call earlier.

One is you should think of this structural cost section.

You should think of this structural cost section.

Was that actually the movement in average deposit is a bit more significant in the quarter and might indicate.

As part of the Investor update, which we will provide in February.

In part of the Investor update, which we will provide in February so what this is.

And whilst we saw very similar trends to the overall bank of England movement in current accounts through the quarter.

What this is.

As we have to announce it now because.

As we work through it okay.

As we work through it.

We took a charge in Q4, that's why we announced it now but you should think of it as.

We captured less of that into fixed term deposits than we might have expected too I'm not related purely to the intensity of competition that we saw.

North something related to a quarter over the last two quarters, but part of the larger restructuring structure.

North something related to a quarter or two.

Last two quarters, but part of the larger restructured structure.

Structural improvement of efficiency and productivity for the bank.

During the quarter.

For your specific question.

In a very intense that particular point and it's really that that's made the difference so I would say the positive behavior.

Coimbatore Sundararajan Venkatakrishnan: For your specific question, what I would say its a few things, number one is that we very deliberately started this quarter at strong capital position of 14% and we've got is capital generation of about 130 basis points of CET1 ratio year to date, this underpins our ability to return capital to shareholders as far as our desire, you know we completed a $750 million buyback in the first half and so total distributions so far this year of $1.2 billion, which is about 30% higher versus the first half of last year, and this really reflects our commitment to return capital to shareholders, we spoke about the efficiencies, we're driving across the group, equally You should note that we are comfortable to operate in the full range of 13% to 14% and we have been there in the past, obviously any capital action ultimately is approved by the board and approved by regulators but from our point of view, and we'll come back with the details in February, from our point of view good initial starting position, good capital generation across the bank, understand the importance and the priority to our shareholders of returning capital willingness to operate through the range.

What I would say its a few things number one is that we very deliberately.

What I would say its a few things number one is that we very deliberately stock.

Please start.

Has some more intensified in response to pricing.

This quarter, our strong capital position of 14% and we of course is capital generation of about 130 basis points of CET, one ratio year to date.

This quarter, our strong capital position of 14%.

And we've got is capital generation of about 130 basis points of CET, one ratio year to date.

So previously we said that we expected that to be more stable than in Q4, and that's simply because in Q4, you typically see a deposit stabilization pre pre Christmas we now no longer anticipate that just because of these competitive dynamics and that's really.

This underpins our ability to return capital to shareholders as far as our desire you know, we completed a $750 million buyback.

This underpins our ability to return capital to shareholders as far as our desire.

Completed a $750 million buyback.

In the first half and so total distributions. So far this year of $1 2 billion, which is about 30% higher versus the first half of last year.

First half and so total distributions so far this year of $1 2 billion, which is about 30% higher versus the first half of last year.

What's causing us to.

To change that outlook.

Coimbatore Sundararajan Venkatakrishnan: And this really reflects our commitment to return capital to shareholders, we spoke about the efficiencies, we're driving across the group, equally You should note that we are comfortable to operate in the full range of 13% to 14% and we have been there in the past, obviously any capital action ultimately is approved by the board and approved by regulators but from our point of view, and we'll come back with the details in February, from our point of view good initial starting position, good capital generation across the bank, understand the importance and the priority to our shareholders of returning capital willingness to operate through the range.

We're not saying that it will be better or worse in the fourth quarter.

And this really reflects our commitment to return capital to shareholders.

We spoke about the efficiencies, we're driving across the group equally.

I think what we are saying is that this customer deposit behavior has been.

We spoke about the efficiencies, we're driving across the group equally.

You should know that we are comfortable to operate in the full range of 13% to 14%.

You should note that we are comfortable to operate in the full range of 13% to 14%.

Relatively difficult to predict.

That's why we're giving you a range, indicating to you that if we saw something similar that would be towards the top of that range.

And we have been there in the past obviously any capital action ultimately is approved by the board and approved by regulators, but from our point of view and we'll come back with the details in February from our point of view good initial starting position good capital generation across the bank.

And we have been there in the past obviously any capital action ultimately is approved by the board and approved by regulators.

That's the reason for the change in guidance.

But from our point of view and we'll come back with the details in February from our point of view good initial starting position good capital generation across the bank.

Yes. Thanks.

And.

However, I'm sure you're sort of corpus through the presentation, but just to add on the NIM for one one minute.

Understand the importance and the priority to our shareholders and returning capital willingness to operate through the range.

Overall group deposits at NSP, UK NIM as part of our overall NIM.

Thank you very much.

Alvaro Serrano Saenz de Tejada: Thank you very much.

Overall deposits grew by 7 billion quarter on quarter.

Next question please.

Angela Anna Cross: Next question please.

NII is up about 6%.

The next question comes from Jason Napier from UBS. Please go ahead, Jason Your line is now open.

Operator: The next question comes from Jason Napier from UBS. Please go ahead, Jason Your line is now open.

$3 2 billion and NIM at 398% at the group levels again, 13 bps higher so.

Good morning, Thank you for taking my questions.

Jason Clive Napier: Good morning, thank you for taking my questions, two from me the first is, coming back to the issue of the flag restructuring charges of bank and as you mentioned capital really strong in fact, the Q3 beat alone is $1 billion pounds relative to consensus and so, I guess anything that you could say that provides a rough sense of how much you are looking at spending here, I appreciate this is not the venue to which you wanted to give it but today, conversations with investors are the, there seems to be risks on the pay upfront with no sense of how much cost savings you might be talking about or where in the group you might be looking to be more efficient, clearly we think it's the right thing to be be doing but the billion beat on CET1 is 7% of annual group costs, you could you could do a lot with that so anything you can do to be helpful or what the payback would be for the charges that are already in mind in which a triggering these provisions that would be the first. and then secondly linked to that at your conference in New York Last September last month months before. You said you are happy with the mix of business. And so I wonder whether you could give us a sense as to when you talk about updating investors on capital allocation priorities, whether you're really just talking about. What grows faster in future or whether we should have in mind. But the present mix of capital allocation is put debate. Yes.

So think about it in the larger context, and also coming back to the restructuring charge two things I would say.

Two for me the first is coming back to the issue of the flagged restructuring charges have been kind of as you mentioned capital.

Two from me the first is coming back to the issue of the flight restructuring charges have been kind of as you mentioned capital.

One is you.

You should think of this structural cross section.

Strong and in fact, the Q3 beat alone is a 1 billion pounds relative to consensus and so.

Strong and in fact, the Q3 beat alone is 1 billion pounds relative to consensus and so.

And.

Part of the Investor update, which we will provide in February so what this is.

I guess anything that you could provide.

I guess anything that you could say they provide.

A rough sense of how.

A rough sense of how much you are looking at spending I. Appreciate this is not the venue to which you wanted to give it but today conversation with investors.

As we have to announce it now because as.

How much you are looking at spending I. Appreciate this is not the venue to which you wanted to give it but today conversation with investors.

As we work through it okay.

Thank you take a charge in Q4, that's why we announced it no but.

Yes.

You should think of it as not something related to a quarter over the last two quarters, but part of the larger restructuring.

No.

They seem to be risks on the pay upfront with.

Seem to be risks on the pay upfront with.

No sense of how much.

Cost savings you might be talking about or where in the group you might be looking to be more efficient clearly we think it's the right thing.

Improvement.

Improvement of efficiency and productivity for the bank.

For your specific question.

<unk> be doing but the 1 billion based on <unk>, 7% of annual group cost you could you could do a lot with that so anything you can do to be helpful. On.

<unk> be doing but <unk>, 7% of annual group costs, you could you could do a lot with that so anything you can do to be helpful. On.

What I would say its a few things number one is that we very deliberately stock.

The payback would be for the charges that are already in mind in which a triggering these provisions that would be the first and then secondly linked to that at your conference in New York last September the last month month before.

This quarter, our strong capital position of 14%.

And we've got is capital generation of about 130 basis points of CET, one ratio year to date.

Jason Clive Napier: And then secondly, linked to that, at your conference in New York last, it was September last month, months before, You said you are happy with the mix of business for the group and so I wonder whether you'd give us a sense as to when you talk about updating investors on capital allocation priorities, whether you're really just talking about, what grows faster in future or whether we should have in mind a sense the present mix of capital allocation is out for debate, thank you.

This underpins our ability to return capital to shareholders as far as our desire.

You said you are happy with the mix of business.

And so I wonder whether you could give us a sense as to when you talk about updating investors on capital allocation priorities, whether you're really just talking about.

Completed a $750 million buyback in the first half and so total distributions. So far this year at $1 2 billion, which is about 30% higher versus the first half of last year.

What grows faster in future or whether we should have in mind.

And this really reflects our commitment to return capital to shareholders.

The present mix of capital allocation is a put debate.

But the present mix of capital allocation is put debate.

We spoke about the efficiencies, we're driving across the group equally.

Yes.

Good questions. Jason. Thank you, let me begin on both of them and then I'll, let Ed add any details.

Coimbatore Sundararajan Venkatakrishnan: Good questions, Jason Thank you, let me begin on both of them and then I'll, let Anna add on any detail, so on the capital versus spending look, this is not the right place to be giving it, I think you know, as I said in the answer to the previous question from Alvaro, we started a good point in capital, we've been accretive on capital and use of spending in the restructuring in the larger context, I'll let Anna add to that in a minute. On the second thing what I would say is, I mean I view the investor update in a simple way. So obviously complex to analyze and execute but I view the question in a simple way. Is what do you think is the target returns that this bank can generate. So what's the RFP ambition hose is comprised at the group level and at the individual businesses how much can it improve in the individuals businesses and therefore, what is it that you wish to fund index movement. Also certain New York, it's very very clear that the market values different businesses differently. And we obviously have to take that into account. And the way in which we think about our capital allocation. So you sort of put it all together and you get the picture of where we think we want to go but obviously more detail on that. And then ultimately once you do that then to be targeted about saying what of that growth and return you wish to target returning to investors because I do absolutely take the point that we don't. We announced that the buybacks on a half yearly basis, and we should we don't have a target of therefore this investment would be something that I think investors will find side. Thanks Frank.

Coimbatore Sundararajan Venkatakrishnan: Good questions, Jason Thank you, let me begin on both of them and then I'll, let Anna add on, on any detail, so on the capital versus spending look, this is not the right place to be giving it, I think you know, as I said in the answer to the previous question from Alvaro, we started a good point in capital, we've been accretive on capital and use of spending in the restructuring in the larger context, I'll let Anna add to that in a minute.

You should note that we are comfortable to operate in the full range of 13% to 14%.

And we have been there in the past obviously any capital action ultimately is approved by the board and approved by regulators.

On the capital spending look this is not the right place to be giving you alright. Thank.

But from our point of view and we'll come back with the details in February from our point of view good initiatives starting position good capital generation across the bank.

As I said in the answer to the previous question from overall, we started a good point and catheter we've been accretive on capital.

As I said in the answer to the previous question from overall, we started a good points and catheter we've been accretive on capital.

I understand the importance and the priority to our shareholders and returning capital willingness to operate through the range.

And view, the spending and the restructuring in the larger context.

<unk> spending and the restructuring in the larger context.

I'll, let <unk> add to that in a minute.

Add to that in a minute.

Thank you very much.

On the second thing what I would say.

Coimbatore Sundararajan Venkatakrishnan: On the second thing what I would say is, I mean I view the investor update in a simple way, it's obviously complex to analyze and execute but I view the question in a simple way and that is, what do you think is the target return that this bank can generate for shareholders, so what's the RoTE ambition, how's it comprised at the group level and in the individual businesses, how much can it improve in the individual businesses and therefore, what is it that you wish to fund in that movement? Also certain New York, it's very very clear that the market values different businesses differently. And we obviously have to take that into account. And the way in which we think about our capital allocation. So you sort of put it all together and you get the picture of where we think we want to go but obviously more detail on that. And then ultimately once you do that then to be targeted about saying what of that growth and return you wish to target returning to investors because I do absolutely take the point that we don't. We announced that the buybacks on a half yearly basis, and we should we don't have a target of therefore this investment would be something that I think investors will find side. Thanks Frank.

Next question please.

As.

I view the Investor update.

The next question comes from Jason Napier from UBS. Please go ahead, Jason Your line is now open.

A simple way.

In a simple way.

So obviously complex to analyze and execute but I view the question in a simple way.

Good morning, Thank you for taking my questions.

Is what do you think is the target returns that this bank can generate.

Two from me the first is coming back to the issue of the flagged restructuring charges I think Kevin you mentioned capital.

Is what do you think is the target returns that this bank can generate.

So what the ambition hose, it's comprised at the group level and in the individual businesses, how much can it improve in the individual businesses and therefore, what is it that you wish to fund index movement.

So what's the RFP ambition hose is comprised at the group level and at the individual businesses how much can it improve in the individuals businesses and therefore, what is it that you wish to fund index movement.

Really strong and in fact, the Q3 beat alone is a 1 billion pounds relative to consensus and so.

I guess anything that you can provide.

Also certain New York, it's very very clear that the market values different businesses differently.

A rough sense of how much you are looking at spending I. Appreciate this is not the venue to which you wanted to give it today.

Coimbatore Sundararajan Venkatakrishnan: I also said in New York, it's very very clear that the market values different businesses differently and we obviously have to take that into account, in the way in which we think about our capital allocation and so, you know you sort of put it all together and you get the picture of where we think we want to go, but obviously more detail on that later and then ultimately once you do that then to be targeted about saying what of that growth and return you wish to target returning to investors? because I do absolutely take the point that we don't, you know, We announced that the buybacks on a half yearly basis, and we should, we don't have a target out there for that and that would be something that I think our investors would find desirable, Anna. Thanks Frank.

Alright, and we obviously have to take that into account.

And we obviously have to take that into account.

Sessions with investors.

No.

And the way in which we think about our capital allocation.

Seem to be risks on the pay upfront with.

So you sort of put it all together and you get the picture of where we think we want to go but obviously more detail on that.

No sense of how much.

Cost savings you might be talking about or where in the group you might be looking to be more efficient clearly we think it's the right thing.

And then ultimately once you do that then to be targeted about saying what of that growth and return you wish to target returning to investors because I do absolutely take the point that we don't.

Seem to be doing but the 1 billion based on CET, one 7% of annual group cost you could you could do a lot with that so anything you can do to be helpful. On both.

And then ultimately once you do that then to be targeted about saying what of that growth and return you wish to target returning to investors because I do absolutely take the point that we don't.

The payback would be for the charges that are already in mind in which a triggering these provisions.

Maybe the first and then secondly linked to that your conference in New York last September .

We announced that the buybacks on a half yearly basis, and we should we don't have a target out there for that and that would be something that I think our investors will find sites.

We announced that the buybacks on a half yearly basis, and we should we don't have a target of therefore this investment would be something that I think investors will find side.

September last month to months before.

You said you are happy with the mix of business for the group and so I wonder whether you could give us a sense as to when you talk about updating investors on capital allocation priorities, whether you're really just talking about.

Thanks Frank.

Angela Anna Cross: Thanks Venkat, Jason we're still going through the process of evaluating those actions as we said so we haven't, we haven't come to a finalized list yet, We have hold them material let me, let me help you a little, You'll note that from our RA we have called out the year to date restructuring charge is around $120 million so we've shown up to you and told you that it is largely in the UK and in any typical year, we run at between 2 or $300 million, so by pulling this up we're indicating to you that it will be higher than that but I cannot comment on specific levelsm simply because we haven't finished the work, but as Venkat said as we take those decisions, we're extremely focused on future returns and we understand and are committed to shareholder returns so that's very much in our mind, the other point around, so there's a strength of the capital position. Within our pricing with good cost and capital discipline, all year that clinic Foundation of where we stand from an in February and we'll tell you more than.

Jason was still going through the process of evaluating those actions as we said so we haven't we haven't come to a finalized less debt.

Jason was still going through the process of evaluating those actions as we said, we havent, we havent come to a finalized left yet.

What grows faster in future or whether we should have in mind.

But the present mix of capital allocation is up for debate. Thank you.

We have hold on the P&L.

We have hold them material.

Let me, let me help you on the call.

Yes.

Good questions. Jason. Thank you, let me begin on both of them and then I'll, let add on any details.

You'll note that from a raw.

Youll note from our raw.

Have called out for the year to date restructuring charge is around $120 million. So we've.

Have called out in the year to date restructuring charge is around 120 million.

On the capital versus spending look this is not the right place to be giving it alright. Thank.

So we've shown up to you and told you that it is largely in the U K.

We've shown up to you and told you that it's largely into the UK.

Yes.

In any typical year, we run at between $2 $300 million.

In any typical year, we run at between $300 million.

As I said in the answer to the previous question from overall, we started a good point and catheter we've been accretive on capital.

Angela Anna Cross: So by pulling this up we're indicating to you that it will be higher than that but I cannot comment on specific levels, simply because we haven't finished the work, but as Venkat said as we take those decisions, we're extremely focused on future returns and we understand and are committed to shareholder returns, so that's very much in our mind, the other point around, so there's a strength of the capital position within operating with good cost and capital discipline all year, that's clearly a foundation of where we step out from in February and we'll tell you more then.

And so by calling the fabric, indicating to you that it will be higher than that but I can't comment on specific levels simply because we havent finished the work as bank have said as we take those decisions. We're extremely focused on future returns and we understand and are committed to shareholder.

So by pulling the fabric, indicating to you that it will be higher than that but I can't comment on.

And view, the spending and the restructuring in the larger context.

Specific levels simply because we havent finished the work.

I'll, let him add to it.

That in a minute.

<unk> said as we take those decisions, we're extremely focused on future returns.

And on the second thing what I would say.

I mean, I view, the investor update.

And we understand and are committed to shareholder returns. So that's very much in our mind.

Returns at that time.

A simple way.

To my mind.

So obviously complex to analyze and execute but I view the question in a simple way.

And the other point around sort of the strength of the capital position within our pricing with good cost and capital discipline all year that Clint is foundation of where we stand Pat from in February and we'll tell you more than.

Other point around so there is a sense of the capital position.

Is what do you think is the target for ton that this bank can generate for shareholders.

Within our pricing with good cost and capital discipline, all year that clinic Foundation of where we stand from an in February and we'll tell you more than.

<unk> mission.

It comprised at the group level and at the individual businesses.

Thanks very much.

Jason Clive Napier: Thanks very much.

<unk> can it improve in the individual businesses and therefore, what is it that you wish to fund and that.

Thank you can we have the next question. Please.

Angela Anna Cross: Thank you can we have the next question. Please.

I also said in New York, it's very very clear that the market values different businesses differently.

The next question comes from <unk> Chandra Rajan from Bank of America Merrill Lynch. Please go ahead, John is now open.

Operator: The next question comes from Rohith Chandra-Rajan from Bank of America Merrill Lynch. Please go ahead, Your line is now open.

Alright, and we obviously have to take that into account.

Hi, Good morning. Thank you very much I was just wanted to come back on the B U K NIM.

Rohith Chandra-Rajan: Hi, good morning, Thank you very much, I wanted to come back on the BUK NIM and really the trends you're seeing on deposits through, through the third quarter and then what you're seeing so far in October too, and then you mentioned that the averaging effect was actually worse than the, than the endpoint position suggesting as you think scopes better in September perhaps, so I was wondering if that continued in October so really how we should think about sort of the trajectory of those deposit flows through the quarter and then into Q4, and then just to clarify that when you say if current trends, if Q3 trends continue then I expect to be at the top of the guided range, is that essentially taking the margin bridge on slide 15, and excluding the five basis points impact from pricing (inaudible) So thank you very, much thank you.

And the way in which we think about our capital allocation.

I wanted to come back on the B U K NIM.

And really the.

So you sort of put it all together and you get.

And really that's the trends youre seeing on deposits through through the third quarter and then what you're seeing is quite following.

Trends you were seeing on deposits through through the third quarter, and then what youre seeing so far.

Get the picture of where we think we want to go but obviously more detail on that.

In October so I know you mentioned that the.

In October <unk>.

Later, and then ultimately once you do that then to be targeted about saying what of that growth and return you wish to target returning to investors because I do absolutely take the point.

Mentioned the.

The averaging effect was actually worse than the than the endpoint position.

Now she thinks scopes.

Suggesting that she thinks scopes.

In September perhaps.

So I was wondering if that has continued in October. So it's really how we should think about sort of the trajectory of those deposit flows through the quarter and then into Q4.

So I was wondering if <unk> continues and I'll tell you really how we should think about sort of the trajectory of those deposit flows through the quarter and then into <unk>.

We don't.

We announced the buybacks on a half yearly basis and we should.

We don't have a target out there for that and that would be something that I think our investors will find side.

Into Q4.

And then just to clarify that when you say if current.

And then just to clarify that when you say if current trends. If Q3 trends continue then I expect to be at the top of the guided range essentially.

Thanks Frank.

Trends if Q3 trends continue then I expect to be at the top of the guided range essentially.

Jason we're still going through the process of evaluating those actions as we said so we haven't we haven't come to a finalized left yet.

In the.

The margin bridge on slide 15, and excluding the five basis points impact from pricing so.

The margin bridge on slide 15, and excluding the five basis points impact from pricing.

We have told them material.

So thank you very much thank you.

Let me, let me help you on the call.

So thank you very much thank you.

Thanks Rohit.

Angela Anna Cross: Thanks Rohith (inaudible) and so what we really mean by the averaging point is that, the appetite for probably a bit more evenly spread through the quarter than they were in the second quarter where we saw somewhat an increase in intensity towards the second, the second half and I don't think it was lessened in September at all, there was certainly quite a few headline rate that were extremely, extremely competitive. and in terms of October I'll just call out the fact that we haven't yet seen the first month's end so We're still midway through the first, the first months, there's nothing in what we can see so far that's really, you know, sort of beyond our expectations alright, with our forecast that's all I can really say at this point in time, but I would just sort of highlight what we're seeing is, is the impact of the of the pricing. In terms of. The sort of range of guidance I mean, what we're really saying rather than any particular point on the bridge is that.

From a raw.

And so what we really mean by by the averaging point is that <unk>.

And so what we really mean by by the averaging point is that the appetite for probably a bit more evenly spread through the quarter than they were in the second quarter.

<unk> called out for the year to date restructuring charge is around 120.

Thanks for calling me a bit more evenly spread through the quarter than they were in the second quarter.

So we've shown that to you and told you that it is largely in the U K.

In any typical year, we run at between $2 $300 million.

So somewhat in.

So somewhat.

An increase in intensity towards the second the second half and I didn't think it was less than September sold and was 39 two headline rate that were extremely.

An increase in intensity towards the second the second half.

So by calling this out indicating to you that it will be higher than that but I can't comment on specific levels.

I didn't think it was lessened in September as Holden was certainly quite a few headline rate that were extremely.

Because we haven't finished the work as Bangkok said as we take those decisions we're extremely focused on future returns.

Angela Anna Cross: And in terms of October I'll just call out the fact that we haven't yet seen the first month's end so We're still midway through the first, the first months, there's nothing in what we can see so far that's really, you know, sort of beyond our expectations alright, with our forecast that's all I can really say at this point in time, but I would just sort of highlight what we're seeing is, is the impact of the of the pricing. In terms of. The sort of range of guidance I mean, what we're really saying rather than any particular point on the bridge is that.

Extremely competitive.

In terms of a Teva I'll just call out the fact that we haven't yet seen the first month's end.

And in terms of a Teva I'll just call out the fact that we haven't yet seen the first month's end.

We understand and are committed to shareholder returns and that's very much in our mind the.

So we're still midway through the first the first months, there's nothing in what we can see so far that's really.

We're still midway through the first the first months, there's nothing in what we can see so far that's really.

The other point around sort of the strength of the capital position, we've been operating with good cost and capital discipline all year.

And.

Cynthia and our expectations are right.

First of all that.

First of all.

I can really say at this point in time, but I would just sort of highlight that what we're seeing is.

This foundation of where we step back from them in February and we'll tell you more than.

I can really say at this point in time, but I would just sort of highlight what we're seeing is.

Is the.

Thanks very much.

Is that the impact of the of the pricing.

Is the impact of the of the pricing.

Okay. Thank you can we have the next question. Please.

In terms of.

Angela Anna Cross: In terms of the sort of range of guidance I mean, what we're really saying, rather than any particular point on the bridge is that depending on where those deposit flows go you could end up with very different exit rate so that's what we're really calling out to you and clearly, if we saw trends similar to what we saw and the deposit trends continue similar to what we saw in Q3, we would be towards the top end of that range and that would give you a particular jumping off point for 2024. And what I would highlight though is that the structural hedge continues to protect the NIM overall and what you have seen over the last quarter is that we've been able to lock in another large chunk by 2023 income, but another three to 400 million. End of 'twenty four 'twenty five income just because of the way that hedges rolling month to month.

The next question.

The sort of range of guidance.

The sort of range of guidance I mean, what we're really saying rather than any particular point on the bridge is that.

Comes from Heath Chandra Rajan from Bank of America Merrill Lynch. Please go ahead. Your line is now open.

What we're really saying rather than any particular point on the bridge is that.

Hi, Good morning. Thank you very much I just wanted to come back on the B U K NIM.

Depending on where those deposit flows go you could end up with very different exit rate. So that's what we're really calling at GE.

Depending on where those deposit flows go you could end up with very different exit rate. So that's what we're really calling out ta.

And really the <unk>.

Trends you're seeing on the.

Through through this third quarter than what you're seeing so much foreign.

And clearly if we saw trends similar to what we saw I E. The deposit trends continue similar to what we saw in Q3, we would be towards the top end of that range and that would give you a particular jumping off point for 2024.

In October .

You mentioned that the.

The averaging effect was actually worse than the than the endpoint position, suggesting that she thinks scope.

In September perhaps.

And what I would highlight though is that the structural hedge continues to protect and then overall and what you have seen over the last quarter is that we've been able to lock in another large chunk of 2023 income, but another three to 400 million.

And what I would highlight though is that the structural hedge continues to protect the NIM overall and what you have seen over the last quarter is that we've been able to lock in another large chunk by 2023 income, but another three to 400 million.

So I was wondering if <unk> continued and I'll tell you really how we should think about sort of the trajectory of those deposit flows through the quarter and then into into Q4.

Angela Anna Cross: And what I would highlight though is that the structural hedge continues to protect the NIM overall and what you have seen over the last quarter, is that we've been able to lock-in another large chunk bites of the 2023 income, but another 3 to 400 million of '24 and '25 income just because of the way that hedge is rolling month to month.

And then just to clarify that when you say if current trends if Q3 trends continue then.

To be at the top of the guided range essentially.

<unk> of 24% and 25 income just because of the way the hedges rolling month to month.

End of 'twenty four 'twenty five income just because of the way that hedges rolling month to month.

In the.

The margin bridge on slide 15, and excluding the five basis points impact.

Thank you.

Rohith Chandra-Rajan: Thank you, yes, that's very helpful, thank you just a quick follow up for Q then, The hedge into the coming years and You were expecting this deposit stabilization in Q4 do you have a view going into next year in terms of deposit trajectory given what you're seeing in terms of competition in the market?

Rohith Chandra-Rajan: Okay. Yes, that's very helpful. Thank you just a quick follow up for Kate. Yes. The hedge into the coming years. You were expecting this deposit stabilization in Q4. As you're going into next year in terms of deposit trajectory given what you're seeing in terms of competition in the market.

Yes, that's very helpful. Thank you just a quick follow up then so given.

<unk>.

Yes, that's very helpful. Thank you just a quick follow up for Kate.

Thank you very much thank you.

Thanks Rohit.

The hedge into the coming years.

Yes.

And so what we really mean by by the.

The hedge into the coming years.

We're expecting this deposit stabilization in Q4, I mean do you have a view going into next year in terms of deposit trajectory given what you're seeing in terms of competition in the market.

You were expecting this deposit stabilization in Q4.

Averaging point is that <unk>.

We're probably a bit more evenly spread through the quarter than they were in the second quarter.

As you're going into next year in terms of deposit trajectory given what you're seeing in terms of competition in the market.

So somewhat of an.

So it's.

Angela Anna Cross: So it's, what this year has taught us is that customers deposit behavior is quite difficult to call, so what I'm not trying to do is give you 2024 NIM outlook, what I can tell you is that there are three factors that we're looking at, one is positive one is neutral on one is more negative, so the positive impact is clearly the impact of the structural hedge, I remember that two thirds of that goes into into BUK. The more neutral impact is that we do expect and we are seeing the impact quarter on quarter mortgage churn is starting to dissipate called that out for some time what is more difficult to call is the impact of the ongoing deposit behavior, both the reduction. Deposits because customers are using them in order to manage the broader economic environment, but also the. Then seeking higher rate. Let's call that one that would stabilize revenue all I can say is that there are other factors in the mix. Most importantly, the structural hedge. Okay. Thank you very much Matt.

An increase in intensity towards the second the second half and I don't think it was lessened in September as Holden was certainly quite a few headline rates that were extremely.

What this year has taught us is that customer deposit behavior is quite difficult to call. So I'm not going to give you a 2024.

What this year has taught US is the customer deposit behavior is quite difficult to call. So I'm not going to give you a 2024.

NIM outlook, while I can tell you is that there are three factors that we're looking at one is positive one is neutral.

NIM outlook, while I can tell you is that there are three factors that we're looking at one is positive one is mutual on one is more negative. So the positive impact is clearly the impact of the structural hedge I remember that two thirds of that goes into into the UK.

Extremely competitive.

In terms of a Teva I'll just call out the fact that we haven't yet seen the first month's end.

One is more negative so the positive impact is clearly the impact of the structural hedge I remember that two thirds of that goes into the UK.

So we're still midway through the first the first months, there's nothing in what we can see so far that's really.

Beyond our expectations.

The more neutral impact is that we do expect and we are seeing the impact quarter on quarter mortgage China, starting to dissipate called that out for some time what is more difficult to call is the impact of the ongoing deposit behavior, both the reduction in deposits.

The more neutral impact is that we do expect and we are seeing the impact quarter on quarter mortgage churn is starting to dissipate called that out for some time what is more difficult to call is the impact of the ongoing deposit behavior, both the reduction.

Angela Anna Cross: The more neutral impact is that we do expect and we are seeing that the impact quarter on quarter of mortgage churn is starting to dissipate, called that out for some time, what is more difficult to call is the impact of the ongoing deposit behavior, both the reduction of deposits because customers are using them in order to manage the broader economic environment, but also the, them seeking higher rates, difficult to call that one that would stabilize credit but all I can say is that there are other factors in the mix and most importantly, the structural hedge. Okay. Thank you very much Matt.

That's all.

I can really say at this point in time, but I would just sort of highlight what we're seeing is.

Yes.

Is that the impact of the of the pricing.

In terms of.

The sort of range of guidance I mean, what we're really saying rather than any particular point on the bridge is that.

Deposits because customers are using them in order to manage the broader economic environment, but also the.

Because customers are using them in order to manage the broader economic environment, but all center.

Depending on where those deposit flows go you could end up with very different exit rate. So that's what we're really calling out ta.

<unk> been seeking higher rates.

Then seeking higher rate.

To call out one stabilized revenue all I can say is that there are other factors in the mix.

Let's call that one that would stabilize revenue all I can say is that there are other factors in the mix.

Most importantly, the structural hedge.

Most importantly, the structural hedge. Okay. Thank you very much Matt.

Okay. Thank you very much Matt.

Rohith Chandra-Rajan: Okay. Thank you very much for that.

Okay. Thank you very much Matt.

Thank you next question please.

Angela Anna Cross: Thank you next question please.

Our next question comes from Chris Cant from Autonomous. Please go ahead, Chris Your line is now open.

Operator: Our next question comes from Chris Cant from Autonomous. Please go ahead, Chris Your line is now open.

Good morning, Thanks for taking my questions.

Christopher Cant: Good morning, thanks for taking my questions, two please one on NIM and one on RoTE so, I appreciate everything you said about the difficulty of predicting depositor behavior and the fact that BUK NIM is not the all and over the group revenue dynamic, also you had some pretty dramatic shifts in your NIM guidance over a few quarters and there's a huge revenue possible full Q exit levels despite the range you are now giving us so, a very simple question to help us on what might happen so what's the average cost of your deposits balance Third quarter. Please. (inaudible) and what proportion. alright. Alright. And then on Rosie. In terms of the risk. A 10% Roe target. Inclusive of restructuring charges. If I just kind of run the numbers on your. Is that liquidity for the year to date and way far out this fall. To get to say no. So sudden roti, including restructuring charges, but that would imply sort of a negative bottom line number for the fourth quarter, you've obviously delivers. Pretty strong <unk> year to date, the fact that you're flagging. <unk>, not being able to get greater than 10% royalty inclusive of restructuring charges implies fourth quarter could be. Net loss. Is that the right way for us to be thinking about this. And within that when Youre flagging, the $120 million restructuring charges year to date. Is it the case that when we get to the fourth quarter. The catch up to the normal 200 to 300 is going to be excluded from erosion calculation as well how are you. Thinking about that. Two to 300. In the royalty calculation and then the exceptional charge on top of that excluded or is the whole amount potentially. When when you calculate the rich and the necessity to make around that target. Yes. Okay.

Two please one on NIM and one on <unk>.

Two please one on NIM and one on <unk> So I.

Appreciate everything you've said about the difficulty of predicting the positive behavior.

Appreciate everything you said about the difficulty of predicting depositor behavior.

Perfect.

The fact that the U K and then there is no the Orlando.

The Orlando.

Group revenue dynamic.

<unk> group revenue dynamic.

This has had some pretty dramatic shifts to the NIM guidance over a few quarters.

<unk> had some pretty dramatic shifts in your NIM guidance over a few quarters.

<unk> of 24% and 25 income just because of the way that hedges rolling 12 months.

Excuse me just possible <unk> exit levels. Despite the range you are now giving us.

Excuse me just possible full Q exit levels. Despite the range you are now giving us.

A very simple question help us frozen theme on Walmart.

A very simple question please help us.

So that helps us.

On what.

That's very helpful. Thank you just a quick follow up for Kate then so given that talks about the hedge into the coming years.

Okay.

What's the average cost.

The average cost.

Youll repulsive.

Third quarter.

Third quarter. Please.

And what proportion alright.

We're expecting this deposit stabilization in Q4, I mean do you have a view going into next year in terms of deposit trajectory given what you're seeing in terms of competition in the market.

Alright.

And then on Rosie.

In terms of the risk.

Christopher Cant: And then on RoTE, in terms of the risks that 10% RoTE target inclusive of restructuring charges, if I just kind of run the numbers on your net flow without equity for the year to date and wait far out this 4Q, to get to say 9% RoTE, including restructuring charges, but that would imply sort of a negative bottom line number for the fourth quarter, you've obviously delivered pretty strong RoTE year to date, the fact that you're flagging potentially not being able to hit a greater than 10% RoTE inclusive of restructuring charges, implies fourth quarter could be a net loss, is that the right way for us to be thinking about this? And within that when You're flagging, the $120 million restructuring charges year to date, is it the case that when we get to the fourth quarter, the catch up to the normal 200 to 300 is going to be excluded from erosion calculation as well, how are you thinking about that, it's 2 to 300 in the RoTE calculation and then, the exceptional charge on top of that excluded or is the whole amount potentially going to be excluded when you calculate the RoTE at the end of the year to asses delivery on that target. Thank you.

In terms of the risk.

The 10% rote target.

A 10% Roe target.

Inclusive of restructuring charges.

So it's.

If I just kind of run the numbers on your.

What this year has taught US is the customer deposit behavior is quite difficult to call. So I'm not going to do is give you a 2024.

Is that liquidity for the year to date and wait for others for Q.

Is that liquidity for the year to date and way far out this fall.

To get to say, 9% roti, including restructuring charges, but that would imply sort of a negative bottom line number.

To get to say no.

So sudden roti, including restructuring charges, but that would imply sort of a negative bottom line number for the fourth quarter, you've obviously delivers.

NIM outlook, while I can tell you is that there are three factors that we're looking at one is positive one is neutral.

In the fourth quarter, you've obviously delivers.

Pretty strong <unk> year to date, the fact that you're flagging potentially not being able to hit the greater than 10% royalty inclusive of restructuring charges.

Pretty strong <unk> year to date, the fact that you're flagging.

One is more negative so the positive impact is clearly the impact of the structural hedge I remember that two thirds of that goes into into the UK.

<unk>, not being able to get greater than 10% royalty inclusive of restructuring charges implies fourth quarter could be.

<unk> fourth quarter could be a net loss.

The more neutral impact is that we do expect and we are seeing.

Net loss.

Is that the right way for us to be thinking about this.

Christopher Cant: And within that when You're flagging, the $120 million restructuring charges year to date, is it the case that when we get to the fourth quarter, the catch up to the normal 200 to 300 is going to be excluded from the RoTE calculation as well, how are you thinking about that, it's 2 to 300 in the RoTE calculation and then, the exceptional charge on top of that excluded or is the whole amount potentially going to be excluded when you calculate the RoTE end of the year to asses delivery on that target. Thank you.

Impact quarter on quarter of mortgage churn is starting to dissipate called that out for some time what is more difficult to call is the impact of the ongoing deposit behavior. Both the reduction in deposits because customers are using them in order to manage the broader economic environment, but also.

And within that when Youre flagging, the $120 million restructuring charges year to date.

Is it the case that when we get to the fourth quarter.

The catch up to the normal 200 to 300 is going to be excluded from the low two calculations as well how are you.

The catch up to the normal 200 to 300 is going to be excluded from erosion calculation as well how are you.

Thinking about that.

Two to 300.

In the royalty calculation and then the exceptional charge on top of that excluded.

In the royalty calculation and then the exceptional charge on top of that excluded or is the whole amount potentially.

<unk> been seeking higher rates.

To call out one stabilize revenue.

The whole amount essentially.

All I can say is that there are other factors in the mix.

When when you calculate the rich and the B.

When when you calculate the rich and the necessity to make around that target.

Most importantly, the structural hedge.

Thank you.

Yes.

Okay.

Okay. Thank you very much Matt.

Thank you very much crests water soon.

Angela Anna Cross: Thank you very much <unk> I assume and I'm sure Venkat will add a few more too, so you're right, there has been some considerable movement on BUK NIM through the last quarter, you also said improvement was driven by customer deposit behavior, I would highlight for you that as we look at UK NIM, we are actually looking at a narrow measure, so in comparison to our peers remember they would be including all of the corporate income and asset base within that and so really you should be looking, as you make comparisons to the rest of the UK you should be looking across both the UK and the corporate NIM position. And we don't disclose. The average rate paid on. <unk>. Deposits, although what we have given you this time to be. More helpful is the split of our deposit balances. And indeed has that has trended over time. It's showing very clearly that movement into term. You would expect and there's plenty of commented from bank of England. Data. On your second question. So to be clear, what we are not doing is giving any kind of PBT forecast for the fourth quarter here. And it wouldn't be appropriate for us to decide not least we havent concluded. Our assessment of the structural actions that we may take. Mainly what we're calling out is a few things firstly clearly going into the fourth quarter with good operating momentum we've delivered 12, 5% year. Year to date. And well ahead of consensus. However, the fourth quarter does have some seasonal impacts in it. Typically we see lower fee income. Typically we see higher impairment in U S cards in particular simply because of the seasonality and spending we also see impacts from the bank Levy. And we've just given you an indication that we see a continuation of deposit trends in the UK. So I'm not saying anything more than that in that typically you expect rates to be lower in the fourth quarter than in the preceding three and to the extent that we take decisions. Decisions in the fourth quarter that may impact the rate case. As we do so we are very focused on future returns for the business. So overall objective here is to improve the returns of the business do time, clearly efficiency and effectiveness. The key part of that so we're just calling out our intention to continue that focus for the. Business. Yes, Ken I'll, just emphasize that last point that I cannot emphasize too much that last point, which I made which is the pick. Think about those. <unk>. Investor update in February and the longer term plan for productivity and efficiency in this bank. Yes. If I could just if I could just pull up. The royalty. Please. Year to date, you've done for <unk>. And profit. Rich tangible it's probably going to be something like 47 billion for the year.

Okay. Thank you next question please.

Soon I'm sure will add if he wants to.

So you're right there has been some.

Our next question comes from Chris Cant from Autonomous. Please go ahead, Chris Your line is now open.

Considerable.

And then on the.

Nathan.

Okay.

Good morning, Thanks for taking my questions.

In the last quarter.

Ted.

Two please one on NIM and one on on Rosie.

Clearly, that's driven by customer deposit behavior.

Data driven by customer deposit behavior.

I appreciate everything you've said about the difficulty of predicting the cognitive behavior.

And I would highlight for you.

I would highlight for you.

As we look at <unk>, we are actually looking at narrow measure.

And then there's no will be Orlando.

As we look at UK NIM, we are actually looking at narrow measure.

<unk> group revenue dynamic.

We've had some pretty dramatic shifts in your NIM guidance over a few quarters.

So in comparison to our peers remember they would be including all of the corporate income.

In comparison to our peers remember they would be including all of the corporate income and asset base within that and so you should be looking as you make comparisons to the rest of the U K you should be looking across both.

Excuse me just possible <unk> exit levels, despite the ranking generic giving us so.

Asset base within that and so you should be looking at in that comparison, the rest of the U K you should be looking across.

Very simple question to help us.

Mike.

What's the average cost.

Both the UK and the core NIM.

Youll deposit.

And then position.

In addition.

Third quarter.

Angela Anna Cross: And we don't disclose the average rate paid on our deposits, although what we have given you this time to be more helpful is the split of our deposit balances and indeed has that, has trended over time and it's showing very clearly that movement into term as You would expect and there's many of comments from bank of England's data. On your second question. So to be clear, what we are not doing is giving any kind of PBT forecast for the fourth quarter here. And it wouldn't be appropriate for us to decide not least we havent concluded. Our assessment of the structural actions that we may take. Mainly what we're calling out is a few things firstly clearly going into the fourth quarter with good operating momentum we've delivered 12, 5% year. Year to date. And well ahead of consensus. However, the fourth quarter does have some seasonal impacts in it. Typically we see lower fee income. Typically we see higher impairment in U S cards in particular simply because of the seasonality and spending we also see impacts from the bank Levy. And we've just given you an indication that we see a continuation of deposit trends in the UK. So I'm not saying anything more than that in that typically you expect rates to be lower in the fourth quarter than in the preceding three and to the extent that we take decisions. Decisions in the fourth quarter that may impact the rate case. As we do so we are very focused on future returns for the business. So overall objective here is to improve the returns of the business do time, clearly efficiency and effectiveness. The key part of that so we're just calling out our intention to continue that focus for the. Business. Yes, Ken I'll, just emphasize that last point that I cannot emphasize too much that last point, which I made which is the pick. Think about those. <unk>. Investor update in February and the longer term plan for productivity and efficiency in this bank. Yes. If I could just if I could just pull up. The royalty. Please. Year to date, you've done for <unk>. And profit. Rich tangible it's probably going to be something like 47 billion for the year.

And we don't disclose.

And what proportion alright.

The average rate paid on.

Alright.

The average rate paid on.

And then on Rosie.

<unk>.

Although what we have given you this time to be.

In terms of the some risks.

Deposits, although what we have given you this time to be.

A 10% Roe target.

More helpful is the split of our deposit balances.

Inclusive of restructuring charges.

And indeed has that has trended over time.

If I just kind of run the numbers on your.

And indeed has that has trended over time.

The equity for the year to date and way far out this fall Q.

It's showing very clearly that amazement and deter us as you would.

It's showing very clearly that movement into term.

To get to say, 90% roti, including restructuring charges, but that would imply sort of a negative bottom line number.

You would expect and there's plenty of commented from bank of England.

Spectrum has plenty of commented from bank of England.

Data.

Angela Anna Cross: On your second question, so to be clear, what we are not doing is giving any kind of PBT forecast for the fourth quarter here and it wouldn't be appropriate for us to decide not least we haven't concluded our assessment of the structural actions that we may take, mainly what we're calling out is a few things, firstly we're clearly going into the fourth quarter with good operating momentum we've delivered 12.5% year to date, somewhat ahead of consensus. However, the fourth quarter does have some seasonal impacts in it. Typically we see lower fee income. Typically we see higher impairment in U S cards in particular simply because of the seasonality and spending we also see impacts from the bank Levy. And we've just given you an indication that we see a continuation of deposit trends in the UK. So I'm not saying anything more than that in that typically you expect rates to be lower in the fourth quarter than in the preceding three and to the extent that we take decisions. Decisions in the fourth quarter that may impact the rate case. As we do so we are very focused on future returns for the business. So overall objective here is to improve the returns of the business do time, clearly efficiency and effectiveness. The key part of that so we're just calling out our intention to continue that focus for the. Business. Yes, Ken I'll, just emphasize that last point that I cannot emphasize too much that last point, which I made which is the pick. Think about those. <unk>. Investor update in February and the longer term plan for productivity and efficiency in this bank. Yes. If I could just if I could just pull up. The royalty. Please. Year to date, you've done for <unk>. And profit. Rich tangible it's probably going to be something like 47 billion for the year.

Data.

On your second question.

Second question.

For the fourth quarter, you've obviously delivers.

So to be clear, what we are not doing is giving any kind of PBT forecast for the fourth quarter here.

Pretty strong ROE to year to date, the fact that Youll flagging.

<unk>, not being able to get greater than 10% royalty inclusive of restructuring charges.

And it wouldn't be appropriate for us to decide not least we havent concluded.

And it wouldn't be appropriate for us to decide not least we havent completed our assessment of the structural actions that we may take.

<unk> fourth quarter could be a loss.

Our assessment of the structural actions that we may take.

Is that the right way for us to be thinking about that.

Mainly what we're calling out is a few things firstly clearly going into the fourth quarter with good operating momentum we've delivered 12, 5% year to date.

Mainly what we're calling out is a few things firstly clearly going into the fourth quarter with good operating momentum we've delivered 12, 5% year.

And within that when Youre flagging, the $120 million restructuring charges year to date.

Is it the case that when we get to the fourth quarter.

Angela Anna Cross: However, the fourth quarter does have some seasonal impacts in it, typically we see lower CIT income, typically we see higher impairment in US cards in particular, simply because of the seasonal particular spending, we also see impacts from the bank Levy and we've just given you an indication that we see a continuation of deposit trends in the UK, so I'm not saying anything more than that in that, typically you expect RoTE to be lower in the fourth quarter than in the preceding three and to the extent that we take decisions in the fourth quarter that may impact the RoTE. Now as we do so we are very focused on future returns for the business. So overall objective here is to improve the returns of the business do time, clearly efficiency and effectiveness. The key part of that so we're just calling out our intention to continue that focus for the. Business. Yes, Ken I'll, just emphasize that last point that I cannot emphasize too much that last point, which I made which is the pick. Think about those. <unk>. Investor update in February and the longer term plan for productivity and efficiency in this bank. Yes. If I could just if I could just pull up. The royalty. Please. Year to date, you've done for <unk>. And profit. Rich tangible it's probably going to be something like 47 billion for the year.

Year to date.

Catch up to the normal 200 to 300 is going to be excluded from the royalty calculation as well how are you.

Somewhat ahead of consensus.

And well ahead of consensus.

However, the fourth quarter does have some seasonal impacts in it so typically we see lower CRP income.

However, the fourth quarter does have some seasonal impacts in it.

Thinking about that.

Typically we see lower fee income.

Two to 300.

In the royalty calculation and then the exceptional charge on top of that excluded or is the whole amount potentially.

Typically we see higher impairment in U S cards in particular simply because of the seasonality in spending we also see impacts from the bank Levy.

Typically we see higher impairment in U S cards in particular simply because of the seasonality and spending we also see impacts from the bank Levy.

When when you calculate your routes to assess to Macquarie on that target.

Yes.

And we've just given you an indication that we see a continuation of deposit trends in the U K.

Okay.

And we've just given you an indication that we see a continuation of deposit trends in the UK.

Thank you very much <unk>.

I'm sure I think I will add if he wants to.

So not saying anything more than that.

So I'm not saying anything more than that in that typically you expect rates to be lower in the fourth quarter than in the preceding three and to the extent that we take decisions.

So you're right there has been some.

Considerable.

<unk>, you expect rates to be lower in the fourth quarter than in the preceding three.

And then on the U K, particularly in the last quarter.

To the extent that we take.

I've said.

Clearly, that's driven by customer deposit behavior.

<unk> in the fourth quarter that may impact the rate case.

Angela Anna Cross: Now as we do so, we are very focused on future returns for the business so our overall objective here is to improve the returns of the business do time, clearly efficiency and effectiveness, the key part of that so we're just calling out our intention to continue that focus for the business. Yes, Ken I'll, just emphasize that last point that I cannot emphasize too much that last point, which I made which is the pick. Think about those. <unk>. Investor update in February and the longer term plan for productivity and efficiency in this bank. Yes. If I could just if I could just pull up. The royalty. Please. Year to date, you've done for <unk>. And profit. Rich tangible it's probably going to be something like 47 billion for the year.

Decisions in the fourth quarter that may impact the rate case.

I would highlight for you.

As we do so we are very focused on future returns for the business.

As we do so we are very focused on future returns for the business. So overall objective here is to improve the returns of the business do time, clearly efficiency and effectiveness. The key part of that so we're just calling out our intention to continue that focus for the.

As we look at U K and then we are actually looking at narrow measure.

Overall objective here is to improve the returns of the business do time clearly.

So in comparison to our payers remember they would be including all of the corporate income.

Patient safety and effectiveness a key part of that so we're just calling out our intention to continue that focus for the business.

Asset base within that and so really you should be looking as you make comparisons to the rest of the UK and you should be looking across.

Coimbatore Sundararajan Venkatakrishnan: Yeah and I cannot emphasize that last point which Anna, I cannot emphasize too much that last point which Anna made which is that, think about those in terms of the investor update in February and the longer term plan for productivity and efficiency in this bank. Yes. If I could just if I could just pull up. The royalty. Please. Year to date, you've done for <unk>. And profit. Rich tangible it's probably going to be something like 47 billion for the year. You are pretty much all the way back to deliver against 10% royalty on the <unk>. Nine months to date. But to get to a point, where you're flagging to us. Thank you might not be greater than 10 for the full year. I mean, I think unless I'm missing something. <unk> implies potentially. Barry. <unk>. Restructuring charges. Am I missing something. And just in the context of the event. Debate. I had some investors asking whether you might be announcing a surprise. This is obviously kind of top of mind steel. Investor base, how it's going to be balancing things. He'll be looking at potentially great benefits. Restructuring. Cost to achieve of whenever we're going to be tight in the fourth. Quarter. Yes. Even expense. Okay. That's correct. So Chris. And I understand enough symbol <unk>. Putting in some Tonight I'm going to stay the same thing that we have not yet completed. <unk>. <unk> plans to the extent that we gain we will update. The market further up full year, both in terms of around the costs, but also the ongoing impact that we would expect them. To have. Just us investing. Distributions on top of our Montaigne. I'll point to that so as we take these decisions we will be extremely mindful. And as <unk> said previously we go into the fourth quarter very deliberately at the top end of our capital range. And on the deposit cost. Could you. Steven. If I frame it differently, how do you. Expect investors to be able to take a view on what might happen. With the UK NIM less went around with. Basic information about what you're currently paying on deposits from it. Types of losses, that's around the mall. Competitive losses, but the key driver.

Business.

Yes.

Yes, Ken I'll, just emphasize that last point that I cannot emphasize too much that last point, which I made which is the pick.

That last point, because I cannot emphasize too much that last point, which I made which is that.

The UK and the core NIM.

And then the position.

And we don't disclose.

Think about that.

Think about those.

The average rate paid on.

Terms of the Investor update in February but longer term plans to productivity and efficiency in this bank.

<unk>.

Investor update in February and the longer term plan for productivity and efficiency in this bank.

Deposits, although what we have given you this time to be.

If I could just if I could just pull up the <unk>.

More helpful is the split of our deposit balances.

Yes.

If I could just if I could just pull up.

Coimbatore Sundararajan Venkatakrishnan: If I could just pull up on the RoTE point first please, I mean the Year to date, you've done $4.4 billions in profit, your average tangible it's probably going to be something like $47 billion for the year so, You are pretty much all the way there to deliver a 10% RoTE on the nine months to date, but to get to a point where you're flagging to us where you might not be greater than 10 for the full year, I mean, I think unless I'm missing something there the maths implies potentially very (inaudible) to restructuring charges, am I missing something there, it does seems in the context of the debate where I had some investors asking whether you might be announcing a surprise buy, this is obviously kind of top of mind to your investor base, how are you going to be balancing things, I'll be looking at potentially great benefits of restructuring or cost to achieve or whatever we're going to be tightening in the fourth Quarter, I mean that's Even expense. Okay. That's correct. So Chris. And I understand enough symbol <unk>. Putting in some Tonight I'm going to stay the same thing that we have not yet completed. <unk>. <unk> plans to the extent that we gain we will update. The market further up full year, both in terms of around the costs, but also the ongoing impact that we would expect them. To have. Just us investing. Distributions on top of our Montaigne. I'll point to that so as we take these decisions we will be extremely mindful. And as <unk> said previously we go into the fourth quarter very deliberately at the top end of our capital range. And on the deposit cost. Could you. Steven. If I frame it differently, how do you. Expect investors to be able to take a view on what might happen. With the UK NIM less went around with. Basic information about what you're currently paying on deposits from it. Types of losses, that's around the mall. Competitive losses, but the key driver.

Christopher Cant: If I could just pull up on the RoTE point first please, I mean the Year to date, you've done $4.4 billions in profit, your average tangible it's probably going to be something like $47 billion for the year so, You are pretty much all the way there to deliver a 10% RoTE on the nine months to date, but to get to a point where you're flagging to us where you might not be greater than 10 for the full year, I mean, I think unless I'm missing something there the maths implies potentially very (inaudible) to restructuring charges, am I missing something there, it does seems in the context of the debate where I had some investors asking whether you might be announcing a surprise buy, this is obviously kind of top of mind to your investor base, how are you going to be balancing things, I'll be looking at potentially great benefits of restructuring or cost to achieve or whatever we're going to be tightening in the fourth Quarter, I mean that's (inaudible)

The royalty.

Yossi.

And indeed have that has trended over time.

Please.

Year to date you've done.

Year to date, you've done for <unk>.

It's showing very clearly that movement into term.

Yes.

And profit.

Sure.

Average tangible is probably going to be something like 47 billion for the year.

Rich tangible it's probably going to be something like 47 billion for the year.

You would expect and as many have commented from bank of England.

Pretty much all the way there to deliver against 10% royalty on the.

You are pretty much all the way back to deliver against 10% royalty on the <unk>.

Data.

On your second question.

The nine months to date.

Nine months to date.

So to be clear, what we are not doing is giving any kind of PBT forecast for the fourth quarter here.

But to get to a point, where you're flagging to us. Thank you might not be greater than 10 for the full year.

Woods.

I mean, I think unless I'm missing something.

I think unless I'm missing something that maps implies potentially.

And it wouldn't be appropriate for us to do so not least we havent completed our assessment of the structural actions that we may take.

<unk> implies potentially.

Barry.

<unk>.

No.

Restructuring charges.

Am I missing something.

Mainly what we're calling out is a few things firstly clearly going into the fourth quarter with good operating momentum we've delivered 12, 5% year to date.

Am I missing something.

Yes.

And just in the context of the event.

In that context.

The book to be flat.

Debate.

I had some investors ask me, what you might be announcing a surprise.

I had some investors asking whether you might be announcing a surprise.

Somewhat ahead of consensus.

This is obviously top of mind your.

This is obviously kind of top of mind steel.

However, the fourth quarter does have some seasonal impacts in it so typically we see lower CIB income.

In your Investor base, how it's going to be balancing those things.

Investor base, how it's going to be balancing things.

Are we looking at potentially great benefit.

He'll be looking at potentially great benefits.

Restructuring costs.

Restructuring.

Typically we see higher impairment in U S cards in particular simply because of the seasonality and spending we also see impacts from the bank Levy.

Cost to achieve of whenever we're going to be type thing.

Cost to achieve of whenever we're going to be tight in the fourth.

This quarter.

Quarter.

Yes.

Even expense.

Okay.

That's correct.

And we've just given you an indication that we see a continuation of deposit trends in the UK.

So Chris.

And I understand the math simple.

And I understand enough symbol <unk>.

Coimbatore Sundararajan Venkatakrishnan: So Chris, I understand enough of what you're putting in front of me, I'm going to stay the same thing that we have not yet completed on those plans, to the extent that we do, we will update the market further up full year, both in terms of around the costs, but also the ongoing impact that we would expect them to have, just as investors do, distribution is on top of our mind too, as I think I pointed out so, as we take these decisions we will be extremely mindful and as You said previously, we go into the fourth quarter very deliberately at the top end of our capital range. And on the deposit cost. Could you. Steven. If I frame it differently, how do you. Expect investors to be able to take a view on what might happen. With the UK NIM less went around with. Basic information about what you're currently paying on deposits from it. Types of losses, that's around the mall. Competitive losses, but the key driver.

Angela Anna Cross: So Chris, I understand most of what you're putting in front of me, I'm going to stay the same thing that we have not yet concluded on those plans, to the extent that we do, we will update the market further up full year, both in terms of around the costs, but also the ongoing impact that we would expect them to have, just as investors do, distribution is on top of our mind too, as I think I pointed out so, as we take these decisions we will be extremely mindful and as You said previously, we go into the fourth quarter very deliberately at the top end of our capital range.

Putting in some Tonight I'm going to stay the same thing that we have not yet completed.

So not saying anything more than that in the <unk>.

Typically you expect rates to be lower in the fourth quarter than in the preceding three.

<unk>.

<unk> plans to the extent that we gain we will update.

That we take decisions in the fourth quarter that may impact the rate case.

The market further.

The market further up full year, both in terms of around the costs, but also the ongoing impact that we would expect them.

Yeah, both in terms of around the costs, but also the ongoing impact that we would expect them.

As we do so we are very focused on future returns for the business. So overall objective here is to improve the returns of the business through time clearly.

To have.

Just us investing.

Distributions on top of our mine team.

Distributions on top of our Montaigne.

I'll point to that so as we take these decisions we will be extremely mindful.

I should say and effectiveness a key part of that so we're just calling out our intention to continue that cost focus for.

And as <unk> said previously we go into the fourth quarter very deliberately at the top end of our capital range.

For the business.

Yes, and I cannot emphasize that last point that I cannot emphasize too much that last point, which I made which is that.

And on the deposit cost if I could.

And on the deposit cost.

Christopher Cant: And on the deposit cost point if I could just (inaudible) as well please How, If I frame it slightly different, how do you expect investors to be able to take a view on what might happen with the BUK NIM, less went around with basic information about what you're currently paying on deposits relative to the types of losses that are out there in the market, it's like competitive losses, but the key driver it's the fact you're re-guiding and lower key deposit attrition, but we don't know how much better those rates are relative to what you're currently paying or have been paying earlier in the year, it's very difficult for us to take a view on what's going (inaudible) without that.

Could you.

Think about that.

Steven.

If I phrase it slightly differently, how do you.

The investor update in February on the longer term plan to productivity and efficiency in this bank.

If I frame it differently, how do you.

I expect investors to be able to take a view on what might happen with the UK NIM unless one of our homes.

Expect investors to be able to take a view on what might happen.

If I could just if I can just call up.

With the UK NIM less went around with.

The <unk> plant.

Please.

Basic information about what you are currently paying on deposits.

Basic information about what you're currently paying on deposits from it.

Year to date you've done.

Across Europe .

Might some losses that are out there at the moment.

Types of losses, that's around the mall.

Your average tangible it's probably going to be something like 47 billion for the year.

Competitive office those are the key driver for the factual.

Competitive losses, but the key driver.

You are pretty much all the way there to delivering a 10% royalty on.

Sure.

Slower deposit attrition, but.

Slower deposit attrition, but we don't know how much better those rates are relative to what you're currently paying more at the earlier.

The nine months to date.

We don't know how much those rates are relative to what you're currently paying more.

But to get to a point, where you're flagging to us. Thank you might not see greater than 10 for the full year.

Earlier in the year, it's very difficult for us to take a view on.

And the year.

Difficult for us to take a view on what's going on.

I mean, I think unless I'm missing something that implies potentially.

Okay.

Angela Anna Cross: So Chris, all I would say is that we price competitively but not un-commercially, if you look at the, our savings pricing is very very clearly indicated that's on our web site and indeed in any branch you will see that we are competitively positioned across our term deposits, across our ISA's, across our instant access for example, rainy day's saver, so we don't genuinely believe that there's something, a surprise in our savings franchise we are happy with it, from quarter to quarter, you will see other competitors operating in a different way.

We now.

Barry.

So Chris what I would say is that we price competitively on commercially.

So crystal, let's say is that we price competitively on commercially.

No.

Restructuring charges.

Am I missing something.

If you look at the.

Now in the context of it.

Our savings pricing is very very clearly indicated platform our web site.

The book to be flat.

Yes.

I had some investors ask me, what you might be announcing a surprise.

Indeed in any fronts, you will see that.

Lindy and any fronts, you will see that.

We are competitively positioned across our term deposits across our ISS instant access fixed on for Randy Thanks, Dave.

First CWC kind of top of mind.

Competitively positions across our term deposits across our ISS instant access for example, Randy Thanks Eva.

Your Investor base, how are you going to be balancing those things.

Are we looking at potentially great benefit.

Genuinely believe that.

Genuinely believe.

Restructuring costs.

There's something.

Cost to achieve of whenever we're going to be tightening it.

There's something.

This price savings franchise, we are happy with it from quarter to quarter, you will see other competitors are pricing in a different way.

This price scenario savings franchise, we are happy with it from quarter to quarter, you will see other competitors are pricing in a different way.

Fourth quarter.

Yes.

Furthermore, even expense.

Thanks, guys.

Sure.

So Chris.

Okay. Thanks, Okay next question please.

Christopher Cant: Okay. Thanks, Okay next question please.

Christopher Cant: Okay. Thanks,

And I understand the math.

Christopher Cant: Okay next question please. The next question comes from Dai stepping from BNP Paribas. Please go ahead Guy Your line is now open.

Angela Anna Cross: Okay next question please.

<unk>.

Operator: The next question comes from Guy Stebbings from BNP Paribas. Please go ahead Guy Your line is now open.

Putting in front of me I'm going to stay the same thing that we have not yet completed.

The next question comes from Dai stepping from BNP Paribas. Please go ahead Guy Your line is now open.

<unk>.

Those plans to the extent that we do we will update.

Good morning, everyone couple.

Guy Stebbings: Hi, good morning, everyone a couple of questions on deposits first the BUK and then outside of the UK. So I'm just trying to understand the comment the pricing played out as expected and you're talking to both, please note for the industry that I would think about pricing and then move ins and deposits for individual institutions is very much linked I've, had you priced up moving onto some peers then the balance maybe wouldn't have been such a headwind, So perhaps you could clarify that when you're just trying to think about in the context of how you might want to react more to protect balances in the future in a competitive marketplace. And then outside the U K clearly that was much stronger just give a bit more color on what youll see strategy is there. Are you going to payoff for us it is very much profitable deposit growth that youre seeing out okay. Thank you.

Couple of questions on deposit beta and then outside the U K.

Couple of questions on deposits first to beta and then outside of the UK. So.

The market further up full year, both in terms of around the costs, but also the ongoing impact that we would expect them.

I'm just trying to understand the comment the pricing played out as expected you talking default pizza for the industry I would think about pricing and then maintenance deposits for individual institutions is very much linked.

So I'm just trying to understand the comment the pricing played out as expected and you're talking to.

Please note for the industry I would think about pricing and then move ins and deposits for individual institutions is very much linked.

To have.

Just us investors too.

Stop moving.

Plus.

Distributions on top of <unk>.

Moving on to some peers.

The financing we wouldn't have been such a headwind.

Advanced <unk> wouldn't have been structure.

<unk> pointed out so as we take these decisions we will be extremely mindful.

And.

Perhaps you could clarify that point I'm, just trying to come up in the context of how you might want to move to protect bonuses in the future.

So perhaps you could clarify that when you're just trying to come up in the context of how you might want to move to protect bonuses in the future in a competitive marketplace.

And as we said previously we go into the fourth quarter very deliberately at the top end of our capital range.

Third marketplace.

And then outside the U K clearly that was much stronger just give a bit more color on what youll see strategy is there.

Guy Stebbings: And then outside the UK, clearly that was much stronger, could you just give a bit more color on what you're seeing, what the strategy is there, are you going to payoff for us it is very much profitable deposit growth that you're seeing outside the UK. Thank you.

And on the deposit cost.

If I could.

Good evening.

Are you going to payoff for us, it's very much profitable deposit growth that youll signals. Okay. Thank you.

Are you going to payoff for us it is very much profitable deposit growth that youre seeing out okay. Thank you.

If I frame it slightly differently, how do you.

Expect investors to be able to take a view on what might happen with the UK NIM last quarter armed with.

Okay. Thanks, Scott I'll take that.

Angela Anna Cross: Okay. Thanks Guy I'll take those both, so What I meant by the pricing was as we expected, clearly we knew at Q2, when we reported to you the cost changes we were going to make and therefore that deposit bucket, that's the one that's called bank rate is broadly as we expected it to be. Now subsequently happened suffice the level and mix of deposits shaved much more driven by the external competitive environment and Thats, what we are. Calling out. Yes. Very similar to what I just said, Chris we are have paid for their for the level of our savings pricing. Strategy is to encourage our customers to develop. These savings habits. On pricing too. As far as possible and maintain our franchise rather than. And attract top money and we will price competitively, but not commercially. So to the extent that we see competitive pricing going. Enough direction then. Obviously, we would not follow that. I think the other thing. Just to put in the mix as everybody is looking at the impact of the U K NIM. Please do know disc. The impact of impairment so all of the behaviors conservatism and behaviors also flowing through into the impairment line into the UK impairment has been lower than consensus for nine successive quarters. Worth bearing that in mind. Second. Second point that you asked about which is around that. Deposits elsewhere. I mean in a high rate. Assistant the high inflationary environment, we would expect to see. High level. Positive flows from retail customers towards corporate. What we see and given our franchise that is what you have. Serving the UK corporate deposits are very stable you see some migration. Very stable in totality and what we've seen in the quarter is the continued inflow. And more from global culprits. Particularly. Sadly long 10 or. Something. And competitively priced. But. Good good for the deposit franchise overall. Lots of continuation of what we called out actually quite landing fees.

So.

What I meant by the pricing was as we expected clearly we knew at Q2, when we reported to you the cost changes we were going Tonight.

Basic information about what Youre currently paying on deposits relative to the types of losses, that's around the mall.

And therefore that deposit bucket.

Competitive losses is that the key driver for the factual.

And therefore that deposit bucket.

That's the one that's called bank rate.

Diving in slower and seeing deposit attrition, but we don't know how much better those rates are relative to what you're currently paying at the time.

As broadly as we expected it to Spain.

As broadly as we expected.

Now subsequently.

Now subsequently happened suffice the level and mix of deposits shaved much more driven by the external competitive environment and Thats, what we are.

Subsequently happened to fight the level and mix of deposit today is much more to resin by the external competitive environment and Thats, what we are.

Angela Anna Cross: Now what subsequently happened to both the level and mix of deposits is much more driven by the external competitive environment and that's what we are calling out and very similarly to what I just said to Chris, we are happy for the overall level of our savings pricing, our strategy is to encourage our customers to develop these healthy savings habits. We are pricing to as far as possible maintain our franchise rather than attract top money and we will price competitively, but not un-commercially. So to the extent that we see competitive pricing going. Enough direction then. Obviously, we would not follow that. I think the other thing. Just to put in the mix as everybody is looking at the impact of the U K NIM. Please do know disc. The impact of impairment so all of the behaviors conservatism and behaviors also flowing through into the impairment line into the UK impairment has been lower than consensus for nine successive quarters. Worth bearing that in mind. Second. Second point that you asked about which is around that. Deposits elsewhere. I mean in a high rate. Assistant the high inflationary environment, we would expect to see. High level. Positive flows from retail customers towards corporate. What we see and given our franchise that is what you have. Serving the UK corporate deposits are very stable you see some migration. Very stable in totality and what we've seen in the quarter is the continued inflow. And more from global culprits. Particularly. Sadly long 10 or. Something. And competitively priced. But. Good good for the deposit franchise overall. Lots of continuation of what we called out actually quite landing fees.

Yes.

Very difficult for us to take a view on what's going on.

We now.

Calling out.

Sure.

Yes.

So Chris what I would say is that we price competitively but on commercially.

Very similar to what I, just said, Chris we are paid for their for the level of our savings pricing.

Very similar to what I just said, Chris we are have paid for their for the level of our savings pricing.

If you look at the.

<unk> is to encourage our customers to develop.

Strategy is to encourage our customers to develop.

Our savings pricing is very very clearly indicated platform our web site.

Healthy savings habits, we are.

These savings habits.

Pricing too.

On pricing too.

Indeed in any branch you will see that.

As far as possible maintain our franchise rather than.

As far as possible and maintain our franchise rather than.

Competitively positions across our term deposits across our Isis across our instant access for example, rainy day Teva So we genuinely believe.

And attract top money and we will price competitively, but not commercially.

So to the extent that we see competitive pricing going down.

So to the extent that we see competitive pricing going.

Direction then.

Enough direction then.

There's something.

Obviously, we would not follow that and I think the other thing.

Mispriced enough savings franchise, we are happy with it from quarter to quarter, you will see other competitors are pricing in a different way.

Angela Anna Cross: So to the extent that we see competitive pricing going in other direction then obviously, we would not follow that, I think the other thing, just to put in the mix as everybody is looking at the impact of the UK NIM, please do not discount the impact of impairment, so all of the behaviors conservatism and behaviors also flowing through into the impairment line in the UK impairment has been lower than consensus for nine successive quarters. Worth bearing that in mind. Second. Second point that you asked about which is around that. Deposits elsewhere. I mean in a high rate. Assistant the high inflationary environment, we would expect to see. High level. Positive flows from retail customers towards corporate. What we see and given our franchise that is what you have. Serving the UK corporate deposits are very stable you see some migration. Very stable in totality and what we've seen in the quarter is the continued inflow. And more from global culprits. Particularly. Sadly long 10 or. Something. And competitively priced. But. Good good for the deposit franchise overall. Lots of continuation of what we called out actually quite landing fees.

Obviously, we would not follow that.

I think the other thing.

Just to put in the mix as everybody is looking at the impact of the Kingdom. Please do know disc.

Just to put in the mix as everybody is looking at the impact of the U K NIM. Please do know disc.

Okay. Thanks, Okay next question please.

Discount the impact of impairment. So all of this behavior is conservatism and behaviors also flowing through into the impairment line in the U K impairment has been lower than consensus for nine successive quarters.

The impact of impairment so all of the behaviors conservatism and behaviors also flowing through into the impairment line into the UK impairment has been lower than consensus for nine successive quarters.

The next question comes from Dai stepping from BNP Paribas. Please go ahead Guy Your line is now open.

Hi, good morning, everyone.

Quick questions on deposit, so FCB Mccann and outside the UK. So.

Just worth bearing.

Worth bearing that in mind.

With that in mind.

And.

I'm trying to understand the comment that pricing played out as expected you're talking to bump pizza for the industry.

Second.

<unk>.

Second point that you asked about which is around that.

Think about pricing and then maybe some deposits for individual institutions is very much linked how do you stop.

Elsewhere.

Deposits elsewhere.

Angela Anna Cross: Now just worth bearing that in mind. Second. Second point that you asked about which is around that. Deposits elsewhere. I mean in a high rate. Assistant the high inflationary environment, we would expect to see. High level. Positive flows from retail customers towards corporate. What we see and given our franchise that is what you have. Serving the UK corporate deposits are very stable you see some migration. Very stable in totality and what we've seen in the quarter is the continued inflow. And more from global culprits. Particularly. Sadly long 10 or. Something. And competitively priced. But. Good good for the deposit franchise overall. Lots of continuation of what we called out actually quite landing fees.

Angela Anna Cross: Now just worth bearing that in mind.

In a high rate.

I mean in a high rate.

Moving on to some peers.

Angela Anna Cross: And Second point that you asked about which is around the deposits elsewhere, I mean in a high rate, consistently high inflationary environment, we would expect to see high level deposits flow from retail customers towards corporate, that's exactly what we see and given our franchise that is what you are observing, the UK corporate deposits are very stable you see some migration but very stable in totality and what we've seen in the quarter is a continued inflow, more from global culprits, that Particularly and fairly long tenor turn something and competitively priced, but good for the deposit franchise overall, so very much a continuation of what we called out on Q2 and in the Q1.

Assistant the high inflationary environment, we would expect to see.

The balance <unk> wouldn't have been such a headwind.

Perhaps you could clarify that point Im just trying think about in the context of how you might want to move to protect balances in the future.

High level.

What that flow from retail customers towards corporate.

Positive flows from retail customers towards corporate.

What we see and given our franchise.

What we see and given our franchise that is what you have.

Third marketplace.

And then outside the U K clearly that was much stronger.

What you are observing.

Serving the UK corporate deposits are very stable you see some migration.

Hey, corporate deposits are very stable you see some migration.

A bit more color on what you will see the strategy is there.

Are you having to pay up or is this very much profitable deposit growth that youll signals. Okay. Thank you.

But very stable in totality.

Very stable in totality and what we've seen in the quarter is the continued inflow.

What we've seen in the quarter is a continued inflow.

Okay. Thanks, Scott I'll take that.

And more from Glyndebourne culprits.

And more from global culprits.

So.

What I meant by the pricing was as we expected clearly we knew at Q2, when we reported to you the cost changes we were going to make.

Particularly.

Fairly long 10 or.

Sadly long 10 or.

Something.

And competitively priced.

And therefore that deposit bucket.

But.

Good good for the deposit franchise overall, so very.

That's the one that's called bank rate.

Good good for the deposit franchise overall.

As broadly as we expected.

I'm not sure continuation of what we called out actually in key K London fees.

Lots of continuation of what we called out actually quite landing fees.

Now subsequently happened to both the level and mix of deposit rates much more driven by the external competitive environment and that's what we all.

Sheila.

John.

If I may just Stefan and emphasize the point made about the link between deposits and impairment.

Coimbatore Sundararajan Venkatakrishnan: If I may just set in and emphasize the point Anna made about the link between deposits and impairment, I think it's, to me, it's one of the interesting things that we've seen, where we've seen people using their deposits to paydown debt in, or its mortgages or other things, once it showed that they had the ability to do it obviously it's helpful with impairment but it also gives you an idea of the type of credit quality of customer we have, which I think is a good thing so as Ana said nine quarters of continuously positive surprises, meaning lower impairments than consensus in BUK and and people using deposits to pay down debt it's all the good thing about credit quality. Sure. Okay. Thank you.

I think it's.

Calling out.

I think it's.

To me, it's one of the interesting things that we've seen.

Yes.

Very similar to what I, just said, Chris we are paid for their from a level of our savings pricing.

Where we've seen people using their deposits to paydown debt.

But thats mortgages or other things.

But its mortgages or other things.

Our strategy is to encourage our customers to develop.

One it showed that they had the ability to do it. So obviously, it's helpful with impairments, but it also gives you an idea of the type of credit quality of customer, we have which I think is a good thing so as Ana said nine quarters of.

One it showed that they had the ability to do it. So obviously it's helpful with impairment because it also gives you an idea of the type of credit quality of customer we have.

These savings habits.

We are pricing too as.

As far as possible and maintain our franchise rather than.

And attract top money and we will price competitively, but not commercially.

I think is a good thing so as Ana said nine quarters of <unk>.

Okay.

So to the extent that we see competitive pricing going.

Continuously positive surprises, meaning lower impairments than consensus can be U K and.

Continuously positive surprises, meaning lower impairments and consensus can be U K and.

Direction then.

Obviously, we would not follow that.

And people using deposits to pay down debt if saw the good thing about credit quality.

And people using deposits to pay down debt. If so the good thing about credit quality.

I think the other thing.

Just to put in the mix as everybody is looking at the impact of the you came in please do know disc.

Sure.

Okay. Thank you.

Guy Stebbings: Thank you.

Discount the impact of impairment. So all of this behavior. This conservatism and behaviors also flowing through into the impairment line and B U K impairment has been lower than consensus for nine successive quarters.

Thank you Guy next question please.

Angela Anna Cross: Thank you Guy next question please.

The next question comes from Benjamin Toms from RBC. Please go ahead. Your line is now open.

Operator: The next question comes from Benjamin Toms from RBC. Please go ahead. Your line is now open.

Good morning, and thank you for taking my questions.

Benjamin Toms: Good morning both and thank you for taking my questions, Firstly it's around just the recent press speculation that you would set a stake in your U K merchant acquiring business I know you don't want to comment on that directly so perhaps the best way to phrase the question is to ask, what you think is the best way of Barclays generating value after this U K Merchant acquiring business going forward. And then secondly, I noticed your statement around the PRA rules being the most relevant to the expected impact under Basel III one. <unk> the regulator gave mentioned how speech last week, our interpretation about speeches that we would likely see a softening of the rules around Basel III one when they are announced later this year and in May 2024 would you agree with US session. Thank you.

Lee.

Just worth bearing that in mind.

It's around just the recent press speculation that you would have to set a stage U K merchant acquiring business I know you wouldn't want to comment on it directly to perhaps the best way to price question to US. What you think is the best way of Barclays generating value occupancy U K merchant acquiring business going forward.

It's around just the recent press speculation that stake in your U K merchant acquiring business I know you don't want to comment on that directly to perhaps the best way to phrase. The question to ask what you think is the best way of Barclays generating value. After this U K merchant acquiring business going forward.

And second.

Second point.

You asked about which is around the <unk>.

Elsewhere.

In a high rate.

Distantly high inflationary environment, we would expect to see.

And then secondly, I noticed your statement around the PRA rules being the most relevant to the expected impact under Basel III one.

Benjamin Toms: And then secondly, I noticed your statement around the PRA rules being most relevant to the expected impact under Basel 3.1, in that context the regulator gave mentioned how speech last week, our interpretation about the speech is that we would likely see a softening of the rules around Basel 3.1 when they are announced later this year and in May 2024 would you agree with our session? Thank you.

High level.

That flow from retail customers towards corporate that's exactly what we see and given our franchise that is what you are observing so UK corporate deposits are very stable you see some migration.

The regulator gave you mentioned how speech last week, our interpretation about speeches that we will likely see a softening of the rules around Basel III one when they were announced late this year and in May 2024 would you agree with US session. Thank you.

<unk> the regulator gave mentioned how speech last week, our interpretation about speeches that we would likely see a softening of the rules around Basel III one when they are announced later this year and in May 2024 would you agree with US session. Thank you.

Very stable in totality and what we've seen in the quarter is a continued inflow.

Alright, let me.

Coimbatore Sundararajan Venkatakrishnan: Alright, let me take both of them, first of all in the UK merchant acquiring business, I think we are we are fortunate that we've got a business that has both issuances and acceptance and it is very much a business which is targeted at corporates and SMEs and it's, and what it does is that it adds another pivot to our arrow, a very important pivot to our arrow when we deal with them. We provide them transaction services, we provide to mortgage banking foreign exchange services and then. And then payments so merchant acquiring. The business itself overall is very good I think there is a broader strategic question for us. Which other banks have faced which is a very technology driven business. Will do. What is your competitive advantage. If you're a comparative advantage in developing the technology or in implementing the technology of building machines, which would put our clients or is your competitive advantage and hosting service as part of the largest set of banking services. That's the question, we're looking at and then I think the commercial arrangement will come out of the answer to that question. That's the way we are thinking about that business as far as Basel III one goes. I would say two things. Third dimensional space with interest I think the UK rules are. So to define it was probably on the market risks resemble the U S routes. And. It is still too soon to say how much of an impact.

Let me take both of them.

First of all in the UK merchant acquiring business.

First of all in the U K merchant acquiring business.

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