Q1 2024 Barclays PLC Earnings Call

Yeah.

Thank you for joining us on today's results call for the first quarter of 2024.

Coimbatore Sundararajan Venkatakrishnan: Good morning. Thank you for joining us on today's results call for the first quarter of 2020. At our investor update a little over nine weeks ago, we set out a three-year plan to deliver a better run, more strongly performing, and higher-returning box. To do so, we aim to make Barclays simpler, better, and more balanced.

At our Investor update a little over nine weeks ago, we set out a three year plan to deliver a better run more strongly performing and higher returning bucket.

To do so we aim to make Barclays, a simpler better and more balanced bank.

We are executing in a disciplined way against this plan and this is our first progress report against our longer journey.

Coimbatore Sundararajan Venkatakrishnan: We are executing in a disciplined way against this plan, and this is our first progress report on our longer journey. I am happy with our overall Q1 performance, which keeps pace with our financial targets for 2024 to 2025. These are first to grow returns with a target ROTE of above 12% in 2026. Second, to rebalance the bank with a target to reduce RWAs in the investment bank from 58% of group RWAs to around 50% in 2026.

I am happy with our overall Q1 performance, which keeps pace with our financial targets for 2024 to 2026. These are first grow returns with a target of above 12% in 2026.

To rebalanced the bank with a target to reduce our <unk> in the investment bank from 58% of group out of <unk> to around 50% in 2026 and.

And third to distribute more capital to shareholders with a target of returning at least 10 billion pounds over 2000 2004 to 2026.

Coimbatore Sundararajan Venkatakrishnan: And third, to distribute more capital to shareholders with a target of returning at least £10 billion over 2024 to 2025. We have also set a target for return on tangible equity, about 10% in 2024. And in the first quarter, we delivered 12.3% in line with our forecast. Total income for the quarter was £7 billion, of which Group Net Interest Income, excluding the investment bank and head office, was £2.7 billion. Our cost-to-income ratio was 60 percent, demonstrating ongoing cost-to-income.

We also set a target for return on tangible equity above 10% in 2024 and in the first quarter. We delivered 12, 3% in line with our plan.

Total income for the quarter was 7 billion pounds of which group net interest income excluding the investment bank and head office with $2 7 billion tonnes.

Our cost to income ratio was 60% demonstrating ongoing cost discipline as we see the benefit of the cost actions, which we took in the fourth quarter of last year coming through.

We achieved around 200 million pounds of growth cost efficiency savings in Q1 out of our targeted 1 billion pounds for the full year 2024.

Coimbatore Sundararajan Venkatakrishnan: As we see the benefit of the cost actions which we took in the fourth quarter of last year coming to fruition, we achieved around £200 million of gross cost efficiency savings in Q1, out of our targeted £1 billion for the full year 2025. We remain well capitalized.

We remain well capitalized our CET one ratio was 13, 5%, which is at the midpoint of our target range and we have completed about 35% of the 1 billion pound share buybacks, which we announced at full year 2023.

Coimbatore Sundararajan Venkatakrishnan: Our CET1 ratio was 13.5%, which is at the midpoint of our target. And we have completed about 35% of the £1 billion share buyback which we announced at full year 2018, across the bank and within each of our five divisions. We are driving improved operational and financial performance to enhance returns, which Anna will cover in more detail shortly. Our business re-segmentation and the framework of targets, which we laid out on the 20th of February, have helped to provide both internal and external transparency, as well as accountability. As Anna and I talk to our colleagues across Barclays, we are encouraged by how the organization has embraced this plan. In February, we described the three-year plan of Measured Ambition and Disciplined Excellence.

Across the bank and within each of our five divisions, we are driving an improved operational and financial performance and has returned which al will cover in more detail shortly.

Our business re segmentation in the framework of targets, which we laid out on the 20th of February have helped to provide both internal and external transparency as well as accountability and our delivery.

As Ana and I talk to our colleagues across Barclays. We are encouraged by how the organization has embraced that plan.

In February we described the three year plan of measured ambition and disciplined execution as.

As part of this we have set up a transformation office, which is responsible for monitoring our delivery across all aspects of the plan.

Coimbatore Sundararajan Venkatakrishnan: As part of this, we have set up a transformation office, which is responsible for monitoring our delivery across all aspects. One important aspect was proceeding with the non-strategic business disposals that we announced at our investor update. We have announced the sale of our performing Italian mortgage portfolio, and we remain in advanced discussions on the sale of our German consumer loans.

One important aspect was proceeding with the non strategic business disposals that we announced at our Investor update.

We have announced the sale of our performing Italian mortgage portfolio and we remain in advanced discussions on the sale of our German consumer business.

Turning to the financial side overall, we are where we expect it to be at this stage you can see on this slide the returns on tangible equity for each of our divisions and for the group for the quarter alongside our 2026 targets.

Coimbatore Sundararajan Venkatakrishnan: Turning to the financial side, overall, we are where we expected to be. You can see on this slide the returns on tangible equity for each of our divisions and for the group for the quarter alongside our 2026 target. These are the most important metrics for me and the executive committee team, and Anna will take you through each of them shortly after I cover a few points on divisional expression.

These are the most important metrics for me and the Executive Committee team.

And I will take you through each of them shortly.

After I cover a few points on divisional execution.

In the investment Bank, we are continuing our journey to improve returns.

<unk> for the quarter was 12% broadly in line with the group.

Coimbatore Sundararajan Venkatakrishnan: In the investment bank, we are continuing our journey to improve it. ROTE for the quarter was 12%, broadly in line with. As with any quarter, there were some areas of strength, some areas of potential improvement, and others where we should do better. We said in February that we would hold ourselves to account in a detailed and transparent way, on a group basis and by default. In global markets, we did not capture market opportunities to the same extent as some of our competitors.

As with any quarter, there were some areas of strength some areas of potential improvement and others, where we should do better.

We said in February that we will hold ourselves to account in a detailed and transparent way on a group basis and by Division.

In global market, we did not capture market opportunities to the same extent at some of our competitors bid.

For example pick was not as strong as we would have liked and we will have more to do on European rates, one of the three focus areas, which we identified in February.

Coimbatore Sundararajan Venkatakrishnan: For example, SIC was not as strong as we would have liked, and we would have more to do on the European race, one of the three focus areas which we identified in February. On the other hand, we are starting to monetize investments made in the other identified focus areas, such as securitize products and equity derivatives.

On the other hand, we are starting to monetize investments made in the other identified focus areas.

Securitized products and equity derivatives.

I am pleased about this and I will talk to you about this in more detail.

In investment banking.

<unk> delivered an improved performance in the quarter and we have the potential to do better.

Coimbatore Sundararajan Venkatakrishnan: I'm pleased about this, and Anna will talk to you about this in more detail, in Investment Banking. DCM delivered an improved performance in the quarter, and we have the potential to do better. As we said at the investor update, we are focused on improving our performance in ECM and advisory. But there is naturally a longer path to success.

As we said at the Investor update we are focused on improving our performance in ECM and advisory.

But there is naturally a longer pathway to success in these businesses.

As an example of our progress in advisory our recently established energy transition group.

One nine transactions since late December showcasing our active advisory role and one of our focus sectors.

Coimbatore Sundararajan Venkatakrishnan: As an example of our progress and advisory services, our recently established Energy Transition Group has announced nine transactions since late December, showcasing our active advisory role in one of our focus groups. In Barclays UK, we expect our recently announced acquisition of Tesco Bank to complete in the fourth quarter of this year. Our strategic partnership with the UK's largest retailer will help accelerate our planned growth in unsecured lending in our home. This is an important step in our plan to deploy an additional £30 billion of RWAs into our higher-returning UK businesses.

In Barclays UK, we expect our recently announced acquisition of Tesco Bank to complete in the fourth quarter of this year.

Our strategic partnership with the Uk's largest retailer will help accelerate our planned growth in unsecured lending in our home market.

This is an important step in our plan to deploy an additional 30 billion pounds of part of <unk> into a higher returning UK businesses Barclays UK, the UK corporate bank and the private banking and wealth management Division.

Over the medium term.

Coimbatore Sundararajan Venkatakrishnan: UK, the UK Corporate Bank, and the Private Banking and Wealth Management Authority over the medium term. This will rebalance RWAs between our businesses and support more consistent and higher returns for our shareholders. One divisional number that stands out on the slide is 5.3% ROTE in our U.S. consumer base, although this is progress from last year's 4.1% ROTE. We recognize we have a lot more to do in order to deliver returns in line with our overall group target of above 12%, and we have a detailed plan to do so, as we set out in February. There was a notable point of execution in this quarter in this division.

This will rebound in <unk> between our businesses and support more consistent and higher return for our shareholders.

One divisional number that stands out on the slide is five 3% royalty in our U S consumer bank.

So this is progress from last year's four 1% our LTE. We recognize we have a lot more to do in order to deliver returns in line with our overall group target of above 12% in 2026.

And we have a detailed plan to do so as we set out in February.

There was a notable point of execution in this quarter in this division.

We announced the sale of $1 1 billion of credit card receivables to Blackstone as we manage capital in the business and strive to improve returns.

Coimbatore Sundararajan Venkatakrishnan: We announce the sale of 1.1 billion dollars of credit card receivables to black people as we manage capital in the business and strive to improve Britain. Our UK corporate bank delivered an ROTE of 15.2%. We look forward to telling you more about this business in a detailed schedule on the 18th of July. I'll now hand over to Anna to take you through the first quarter financials in motion. Thank you, Venkat, and good morning everyone.

Our UK corporate bank delivered an <unk> of 15, 2%.

We look forward to telling you more about this business in a deep dive scheduled for the 18th of June.

I will now hand over to Anna to take you through the first quarter financials in more detail.

Thanks, and good morning, everyone.

On slide six.

We have laid out the Q1 financial highlights.

To this day.

Angela Anna Cross: On slide six, we have laid out the Q1 financial highlights, the box, and you'll see the same throughout the presentation for each business. I won't go through these slides, but I have included them for ease of reference, starting on slide seven. The headline message is that Q1 was in line with the plan we laid out at the investor update in February. We delivered a revenue of 12.3% and earnings per share of 10.3p in Q1.

For each business.

Slide <unk>.

But as a reference.

Starting on slide seven.

The headline net.

Q1 was in line with.

The investor update.

Sure.

We delivered a ratio of 12, 3%.

And earnings per share of $10 three in Q1.

There were a number of items driving <unk>.

And Kevin Mackay with library in the investment Bank.

Angela Anna Cross: There were a number of items driving the year-on-year rating mix; income and returns were lower in the investment bank compared to a strong prior year Q1 comparison. Operating costs, which exclude bank levy and litigation and conduct, were down 3%, reflecting ongoing strong costs, as well as efficiency savings, including some benefit from the structural cost actions taken in Q4 2023.

Strong prior year comparison.

Operating costs.

<unk> Bank Levy and litigation and conduct with di.

Reflecting ongoing strong cost discipline as well as efficiency savings, including some benefit from our structural cost actions taken in Q4 2020 slate.

<unk> costs were up Keith Thank you year on year.

<unk> billion, which included 190 million charge in Q1, or so level by Pennsylvania.

Angela Anna Cross: Total costs were up 2% year-on-year at £4.2 billion, which included a £120 million charge in Q1 2024 from the revised Bank of England levy. We expect it to be partially offset by increased income over the course of the year, resulting in a net annualized reduction in PBC of circa £50 million for 2024. However, impairments were probably flat year on year. And finally, TNAV per share increased 34 pence year-on-year to £335,000, including the effect of a less negative cash flow hedge reserve driven by the rate environment as it. Overall, we continue to target a statutory ROTI of above 10% in 2024. At our InVector update in February, we stressed the quality and stability of our InVector platform.

We expect that.

Partially offset by increased income.

Most of the year, resulting in a net annualized reduction in PBC.

The 2024.

In parallel with broadly flat year on year.

And finally in our per share increased 34% year on year to 335.

Including the effect of a less negative cash flow hedge reserve driven by the rate environment.

Yes.

As a rule we continued to talk.

EBIT is above 10% in 2024.

At our Investor update in February.

The policy.

Let's say of our income.

The more stable revenue to generate retail financing in the investment bank provide balance to our income type Paul.

Angela Anna Cross: The more stable revenues we generate from retail, corporate, and financing in the investment banks provide balance to our income profile. I will talk about the individual business harbors shortly. Together they contributed 68% of Greek income in Q1 and are expected to continue to grow above 70% by 2026. Total income was down 4% year-on-year at £7 billion, and the group's net interest income, excluding the IB and head office, was £2.7 billion, as you can see on slide 9. NII was globally stable, here.

I will talk about the individual business travelers shortly together they contributed 68% of bleach income 81 and all.

Yes.

About 70% by 2020.

Okay.

Total income was down 4% year on year at <unk> 7 billion.

Net interest income, excluding the MLP and head up there with two 7 billion as you can see on slide nine.

<unk>.

These stable year on year, even though the balance sheet competition and rate outlook are very different between that point in time.

Angela Anna Cross: Even though the balance sheet composition and rate outlook are very different between those two points in time, long-term structural hedge tailwinds offset the pressure on NII from deposit movement and mortgage as well as Ray Edwards going forward. We can all expect Ruth's NII, ex-investment bank and head office, of circa £10.7 billion for the full year, and Barclays' UK NII of circa £6.1 billion, excluding Pesco Bank, which we now expect to complete in Q4 2024.

Our long term structural hedge tailwind offset the pressure on NII.

Positive movements and mortgage margin as well as rate headwinds going forward.

Great.

Investment banking had often.

A $10 7 billion Oes and Barclays UK NII of $6 1 billion excluding taxes.

Which we now expect to complete in Q4 2024.

Deposit balances were impacted by seasonal reductions in Q1, a part two tax payments.

We expect underlying deposit chain continued while after Q1 in line to stabilize in the second half.

Angela Anna Cross: Deposit balances were impacted by seasonal reductions in Q1, in part due to tax. We expect underlying deposit trends to continue to slow after Q1 and loans to stabilize in the second half. We expect the benefits from the structural hedge, which you can see on slide 10, to largely offset these risks, resulting in a broadly stable NIH. As a reminder, the Structural Hedge is designed to reduce volatility in NII and manage interest rate risk.

We expect the benefit from the structural hedge which you can see on slide 10, largely for that dynamic, resulting in a broadly stable and Haryana.

As a reminder, the structural hedge is designed to reduce volatility in NII.

Interest rate risk.

Great.

The hedge has done it right.

And in a falling rate environment, we will see the benefit from the protection that's at Cantor.

Angela Anna Cross: The heads have dampened the growth in our NII, and in a falling rate environment, we will see the benefit from the protection that it gives us. We have around £170 billion of hedges maturing between 2024 and 2026 at an average yield of 1.5%, significantly lower than current plot rates. The expected NII tailwind is significant and predictable.

We have around 170 billion of hedges maturing between 2010 before.

Paul Thank you.

Six at an average yield of one 5%.

Currently lower than current spot rates.

The expected NII tailwind significant unpredictable.

$9 3 billion of aggregate income losses, evidenced through year end 2015 states up from $8 6 million.

Angela Anna Cross: 9.3 billion of aggregate income is now locked in over the three years to the end of 2026, up from 8.6 billion at the year end. As we said in February, reinvesting around three quarters of the £170 billion at around 3.5% would compound over the next three years to increase structural hedging, and in 2026, it is circa £2 billion versus 2023. Turning now to costs, on slide 11. Total costs were up 2% at £4.2 billion, including the £120 million charge from the revised Bank of England levy scheme. Operating costs were down 3.0.

Okay.

As we said in February reinvesting around three quarters of 170 billion events.

5% would compound as the next three year increased capital hedging income in 2020 step by step achieved billion. Thank.

Thank you.

<unk>.

Turning now to costs on slide 11.

<unk> costs were up 2% at $4 2 billion, including the $120 million charge.

Revised the England Levy operating cost per day.

Yes.

Our cost to income ratio was 60% and despite <unk> eastern.

63%.

Angela Anna Cross: Our cost to income ratio was 60%, and despite the levy, we still expect it to be circa 63% for 2024. We expect a total of 1 billion of efficiency savings for the full year 2024, half of which will be driven by the structural cost we took in 2023 and halved by prior and ongoing efficiency investments. We have achieved 0.2 billion of that in Q1. These efficiencies have enabled us to offset inflation, regulate trade and control spending, and create the capacity for investment. Turning now to impairment on slide 12.

For 2020 goal.

We expect to take about $1 billion of efficiency savings for full year. Thank you Paul.

Half of which will be driven by the structural cost actions, we took in 2023.

Pipeline and ongoing efficiency investment.

We have achieved.

<unk> billion a day in Q1.

These efficiencies have enabled us to offset inflation.

<unk> controls and space capacity for investment.

Turning now to impairment on slide clouds.

The loan loss rate of 51 basis points for the quarter.

This updated 2050.

Angela Anna Cross: The loan loss rate of 51bpq was within our through the cycle guidance of 50 to 60 and the impairment charge was broadly flat year on year at 513bpq. The UK charge was £58 million, equating to an 11-day, [inaudible] Starting from this low and stable base, we expect to track towards circa 35 basis points over time as we complete the Tesco Bank acquisition and grow the balance sheet, as outlined at our investor

And the impairment charge was broadly flat year on year at $513 million.

The Barclays UK charge.

The $8 million equating to an 11 basis point loss rate.

Starting from a low and stable base, we expect to track towards that 35 basis points, David time, as we complete the <unk> acquisition and the balance sheet.

Line.

Investor update.

The charge of $410 million in the U S consumer bank increased year on year, while the loan loss rate was 610 basis points.

Angela Anna Cross: The charge of £410 million in the US consumer bank increased year-on-year, while the loan-loss rate was 610 basis points, a slight decrease on the Q4 level. Slide 13 shows that our actual..., and the U.S. Consumer Rights remain below.

Equally on the Q4 level.

Slide 13 shows that our app.

Actual savings in the U S consumer remains alive.

Although we have seen a sequential quarterly increase and right Paul.

Delinquency rates have increased in line with the industry.

Angela Anna Cross: Although we have seen a sequential quarterly increase in right, as delinquency rates have increased in line with the industry. As we said before, we expect RIPOS to increase during the remainder of this year, which is why we have been building reserves. We expect the US consumer bank impairment charge to remain elevated through the first half of 2024 and to improve in the second half, resulting in a lower full-year charge this year, and we continue to guide to low loss rates trending down toward the long-term average of circa 400 basis points. Turning now to The Businesses.

As we said before.

LIFO to increase during the remainder of this year, which is why we have been building.

We expect the U S consumer bank impairment charge to remain elevated through the first half of 'twenty.

And to improve in the second half.

<unk> and a lower full year charge this year.

And we continue to guide to loan loss rates trending down towards the long term average of circa 400 basis points.

Turning now to the businesses.

As I mentioned, you can see Barclays UK financial highlights and targets on slide 14.

Angela Anna Cross: [inaudible] The UK's financial highlights and targets are on slide 14, but I will talk about slide 15. Roti was 18.5%, and total income was £1.8 billion, down £135 million year-on-year, driven by product dynamics in deposits and mortgages, lower card income, and the transfer of UK wealth in Q2 2023. NII of 1.5 billion was broadly stable in Q4 and we continue to target circa 6.1 billion of NII for Barclays UK in 2024, supported by the strength of the structural hedge tailwind.

Slide 15.

<unk> was 18, 5% and table income was $1 8 billion.

$135 million year on year, driven by the product dynamic and deposits and mortgages that are causing that.

<unk> U K well in Q2 2000 and strength.

NII of $1 5 billion was broadly stable on Q4, and we continue to target $6.

$1 billion of NII the Boston.

In 2020, all supported by the strength of the structural hedge tailwind.

Hi, Tom.

Okay.

We expect to contribute circa $400 million of additional annualized NII following Q4 2020 or completion.

Angela Anna Cross: The NII target is fully SFO banked, which we expect to contribute circa £400 million of additional annualised NII following the completion of Q4 2024. Non-NII was £277 million in the quarter following the non-repeat of a one-off in Q4 last year. We expect a run rate greater than £250 million per quarter going forward, as regarded in Q4. Total costs were £1.1 billion, down 3% due to efficiency savings and the transfer of UK wealth in Q2 last year, partially offset by an increase of £54 million from the revised Bank of England levy. The cost-to-income ratio was 58%.

Non NII was $277 million in the quarter following the non repeat of one off in Q4 last year.

We expect a run rate greater than $250 million per quarter going forward as we guided in Q4.

<unk> costs were $1 1 billion down 3%.

Agency saving on the transfer of U K well in Q3 last year, partially offset by an increase of $54 million from the revised banks of England philosophy.

Cost to income ratio was 58.

Moving on to the Barclays UK customer balance sheet on slide 16.

Normal Q1 seasonality was a contributor to the $3 9 billion deposit reduction from Q4 to 237 billion.

Angela Anna Cross: Moving on to the Barclays UK customer balance sheet on slide 16. Although normal Q1 seasonality was a contributor to the 3.9 billion deposit reduction from Q4 to 237 billion, underlying deposit trends were as expected and broadly consistent with Q4. Deposit migration has continued to slow, and pricing in the savings market has stabilised. On the lending side, lead indicators such as mortgage applications and card acquisition volumes are largely positive, but it will take time for those to flow into the balance. Gross mortgage lending remains in line with 2023 trends, with balances of £163bn.

Underlying deposit trends were as expected and broadly consistent with Q4.

Deposit migration has continued to slide and pricing in the savings market has stabilized.

On the lending side lead indications such as mortgage applications and card acquisition volume along with positive that will take time to flow into the balance sheet.

Gross mortgage lending remains in line with <unk> III trend this balances of 163 billion.

However, we grew our share in.

In Highland Valley loyalty as per our stated ambition.

Angela Anna Cross: However, we grew our market share in high loan-to-value mortgages, and have pronounced Stacey's ambition. UK card balances were stable at £10bn, acquisition volumes are strong, and consumer spending was in line with expectations, while three payment rates remain high. Moving on to the financial highlights for the UK Corporate Bank on slide 17. This is the first new divisional disclosure since our re-segmentation, so the numbers may be less than a million. As a reminder, our UK corporate banks serve mid-sized UK corporate clients and have relationships with around 25% of the UK market and include our corporate card issuing business.

UK card balances are stable at $10 billion.

Acquisition volumes are strong and consumer spending was in line with expectations, while prepayment rates remain high.

Moving on to the financial highlights for the UK corporate bank on slide 17.

This is new to divisional disclosure since our re segmentation the numbers may be less familiar.

As a reminder, our UK corporate bank staff mid sized corporate clients and has relationships is around 25% of the UK market.

On the.

Corporate card issuing business.

As you can see on slide 18.

K corporate bank racy affecting 6%.

Angela Anna Cross: As you can see on slide 18, the UK Corporate Bank increased fees to 15.2%. However, income was down 6% year-on-year at £434 million, primarily due to the interest rate and inflationary environment driving lower returns from liquidity.

Income was down 6% year on year at $434 million, primarily due to the interest rate and inflationary environment driving lower returns from the liquidity pool.

Total cost increased by 20%.

Reflecting investments to support growth and the impact of the revised type thing.

Angela Anna Cross: Total costs increased by 20%, reflecting investor spend to support growth and the impact of the revised Bank of England's levy scheme, which alone reduced grosses by around 3%. Turning now to Private Banking and Wealth Management, which is another one of our newly re-segmented divisions created following the combination of our private banks and UK wealth businesses in Q2 last year. This is a high-returning business with opportunities for growth going forward. Moving to slide 25.

<unk>, which alone.

Tracy <unk> three percentage points.

Turning now to private banking and wealth management, which is another one of our newly re segment.

This division created in the combination of our private bank.

And wealth businesses in key seen last year.

This is a high return business with opportunities for growth going forward.

Moving to slide 20.

Gracie with 28, 7% supported by growth in client assets and liabilities.

Angela Anna Cross: Rosy was 28.7% supported by growth in client assets and liabilities. Although we have not restated the historical financials prior to the UK wealth transfer in Q2 last year, we have called out the rate and the impact of the surplus 3.4%. Income increased by around £50 million a year, driven by £48 billion of balance growth both from the UK wealth transfer and an underlying £19 billion increase consistent with strong equity market levels. This is partially offset by continued, although slowing, deposit migration.

Although we have not restated the historical financials prior to the UK wealth transfer in Q2 last year, we have called out the impact of circa three 4%.

Income increased by around 50 million year on year, driven by 48 billion of balance Greg.

In the UK wealth transfer and the underlying 19 billion increase consistent with strong equity market levels.

This is partially offset by continued although slowing deposit migration.

Costs increased year on year, largely as a result of the transplant. The Allstate is ongoing investments in growing the business.

Angela Anna Cross: Costs increase year on year, mostly as a result of the transfer but also due to ongoing investment in growing the business. Turning now to the Investment Bank on slide 22. The Investment Bank delivered a Q1 receipt of 12 per cent, total income of £3.3 billion, with down £70,000 versus a strong year-on-year comparison. Total costs were down 2%, driven by non-repeated last year's European levy, lower performance-related costs, and included this quarter's Bank of England levy charge of £33 million, resulting in a CIR of 60%. RWA revenues were up 3 billion on Q4 reflecting normal seasonality. RWA productivity measured by income over average RWA was 6.5%. The plum remains to impress.

Turning next investment bank on slide 22.

The investment bank delivered a HELOC nicely at 12%.

Total income of $3 3 billion, but down 7% versus a strong year on year comparison.

Total costs were down 2% driven by non repeat of last year's European Levy.

Performance related costs.

Included this quarter past, the England, <unk> 3 million.

Starting in our CIO.

However, the rates were up $3 billion in Q4, reflecting normal seasonality.

Part of the rate productivity measured by income as our average hourly rate was six 5%.

The plan remains to increase investment bank <unk> productivity, while keeping at the device in the division broadly flat.

Angela Anna Cross: Investment Bank RWA productivity while keeping RWAs in the division broadly flat, as we set out in the investor update. Now, looking at the specific income drivers for each business line in more detail on slide 23. When we think about this business versus our peers, we use a U.S. dollar comparison. So that's what I will talk to you about here.

We set out in the Investor update.

Now looking at.

Income drivers for each business line in more detail on slide 23.

Let me think about this business versus our peers.

As a U S. Dollar comparison does that quantum two <unk>.

<unk> income was down 5% year on year.

Within the equities was up 30% and that was down 19% with price comparison impacted by specific items.

Angela Anna Cross: Markets in Camberstone were 5% year-on-year. Within this, equities were up 30% and fixed was down 19%, with both comparisons impacted by specific items. Equities included a non-recurring gain on Visa B shares of $125 million and was up 11% excluding risk, with good performance in cash, prime, and equity derivatives, one of our focus businesses from the investor update. Sixth performance in Q1 last year included inflation-linked gains, which we called out at the end of the year, with income down 14% excluding this, driven by industry-wide lower activity in that sector. We can do better here.

Equities included a nonrecurring gain on visa b shares of $175 million and was up 11% excluding that with good performance in cash prime and equity derivatives, one of our specialist businesses from the Investor update.

Great performance in Q1 last year included inflation linked game, which we call that at this time.

With income down, 14%, excluding that driven by industry wide lower activity in that time.

We can do that to here.

Work disease to regain market share in European rates another of our businesses.

Angela Anna Cross: We have work to do to regain market share in European rates, another of our focus businesses. Congressly, the market for securitized products, the third place, has been favourable, and given the investments made, we have been able to monetise this more than we would have done in the past. Excluding the inflation link gained last year, financing income across SIC and equities remained around $700 million, providing the more stable income stream to the market that we have focused on. Investment Banking Fee Income was up 6% year-on-year in dollar terms.

Congratulate the market for securitized products, our third business has been favorable and given the investments made we have been able to monetize it more than we would have done in the past.

Excluding the inflation linked games last year financing income, Michael FIC and equities remains around 700 million, providing a more stable income streams and markets that we have taken some.

Investment banking fee income is up 6% year on year in dollar terms.

CCM delivered increased performance across both investment grade and leveraged finance and ACM also showed encouraging signs of recovery.

Angela Anna Cross: DCM delivered improved performance across both investment grade and leveraged finance, and ECM also showed encouraging signs of recovery. Advisory income is lower against a strong comparator, but we have a healthy pipeline of announced deals which will add to revenue on completion. As with the UK corporate banks, international corporate bank income was impacted year-on-year by the changing rates and inflationary environment on deposits and liquidity pool returns.

Advisory income was lower against a strong comparison, but we have a healthy pipeline of land deals, which will add to revenue on completion.

Positive the UK corporate bank is.

The national corporate banking home within Pat to year on year by the changing rates, an inflationary environment on deposit and liquidity pool returns.

Turning now to the U S consumer banking on slide 25.

The U S and CEVA bank generated royalty of five 3%, reflecting higher impairments versus the prior year, which more than offset higher income and lower costs.

Angela Anna Cross: Turning now to the U.S. Consumer Bank on slide 25. The U.S. Consumer Bank generated a rating of 5.3%, reflecting higher returns versus the prior year, which more than offset higher income and lower costs. Income growth of 4% included an increase in NII on higher card balances year-on-year. Total costs were down by 9%, reflecting efficiency savings and lower marketing spend, driving a cost-to-income ratio of 46%

Income growth of 4%.

Included an increase in NII on higher cost ounces year on year.

Total costs were down by 9%, reflecting efficiency savings and lower marketing spend driving our cost to income ratio of 46.

And net receivables reduced in line with normal seasonal trends in Q1 versus Q4, and also completed the sale of $1 1 billion.

Angela Anna Cross: End net receivables reduced in line with normal seasonal trends in Q1 versus Q4 and also included the sale of 1.1 billion dollars of own-brand credit cards. Good luck! Ending the quarter at just over 30 billion dollars. As a reminder, this transaction reduced RWAs through the fee recognition of these receivables, which we continue to service for a fee. The late-seas legislation, once it comes into effect later this year, will be a headwind for sighting.

Brian credit card receivables.

Axis ending the quarter at just over $30 billion.

As a reminder, this transaction reduced our Wi Fi recognition of these receivables, which we continue to service for a fee.

The late fees legislation once it comes into effect later this year will be a headwind to fee income, but we expect to mitigate through actions to drive higher NII increasing from revised pricing.

Angela Anna Cross: But we expect to mitigate this through actions to drive higher NII, including revised pricing, although there will be a lag whilst these actions are introduced. We are looking to increase the proportion of core deposits in our funding mix in this business to around 75% by 2026. At 67%, the mix was broadly unchanged on last year but up sequentially from year-end levels. Turn in now to head office on slide 26. Head Office Income was up 22% year-on-year at £194m, driven by a gain on the disposal of legacy investment and increased German cards, partially offset by lower payments income, head accounting, and treasury output.

Will be alive, what the actions are introduced.

We are looking to increase the proportion of core deposits and our funding mix and fitness to around 75% by 2026.

At 10% the mix was broadly unchanged on last year, but up.

Quench Lee from year end levels.

Turning now to head office on slide 26.

Head office income was up 32% year on year.

$194 million driven by gain on disposal of legacy investments and increased German cause income, partially offset by lower payments income hedge accounting and treasury.

The sale of our performing Italian retail mortgage book is expected to be complete in Q T generating a pre tax loss of <unk> 5 million, whilst reducing <unk> by circa $1 8 billion.

Angela Anna Cross: The sale of our performing Italian retail mortgage book is expected to complete in Q2, generating a pre-tax loss of circa £225 million whilst reducing RWA by circa £0.8 billion. The transaction will have a negative 2024 RISD impact of circa 45 days, but it's broadly neutral to capital. We are also in discussions with respect to the proposals of the remaining non-parties and Cliff Frank linked portfolios. We expect these disposals to generate a small pre-tax loss but again be broadly neutral to capital gains. Turning now to the balance sheet, starting capital on slide 27.

The transaction will have a negative 2024, racy impact third and 45 basis points, but it's broadly neutral to capital.

We are also in discussions with respect to the disposals of the remaining non performing a Swiss franc linked portfolios. We expect these disposals to generate a small pretax loss, that's again, a broadly neutral to capital.

Turning now to the balance sheet, starting with capital on slide 27.

The CET one ratio was 13, 5% at the end of Q1.

We expect to see.

Angela Anna Cross: [inaudible] with 13.5% at the end of G1, where we expect it to be in the middle of our target range and down 30 basis points at year end. This reflects a seasonally higher capital usage in Q1, and the ongoing $1 billion full-year 2023 buyback that comes off the Goldberg, Angela Cross, Barclays, Angela Cross, Barclays, Angela, Angela, Angela, Angela, Angela, Moving on to risk-weighted assets, in slide 28, RWA increased their own 7 billion in line with our expectations driven by normal seasonal trends versus T4 in the investment bank.

In the middle of our target range and down 30 basis points on the year end.

This reflected seasonally higher usage in Q1 and the <unk>.

Oil gathering 1 billion full year expenses three.

Three buyback that comes off the CET one ratio has given.

Our capital distribution plans remain unchanged.

At least $10 billion of capital to shareholders between 2024, and 2006 with 58 tasteful broadly in line with 2023 levels 8 billion.

Leaning on risk weighted asset in slide 28.

Although the rate increased by around $7 billion in line with our expectations driven by normal seasonal trends start to key KOL in the investment bank.

There were also some regulatory model changes in Boston to U K, which we expect to be cautiously offset as the course of this year.

Angela Anna Cross: There were also some regulatory model changes in Barclays UK, which we expect to be partially offset over the course of this year. However, our guidance remains for regulatory-driven RWA inflation to be at the lower end of 5% to 10% of December 2023 group RWAs, as we reiterated in February. As I noted earlier, TNAF is shared with its 335 pence, up 34 pence year-on-year, driven by attributable profit and the reduced cash flow hedge reserve drag on shareholders' equity.

Our guidance remains of regulatory driven <unk> inflation to be at the low.

Lower and 5% to 10% of the standard 2023.

At any rate as we reiterated in February.

As I mentioned earlier.

<unk> per share, which is 335 up 34 tenths year on year, driven by attributable profit and the reduced cash flow hedge reserve drag on shareholders equity.

Additionally share repurchases reduced our share count by 4% as the same timeframe driving Tina accretion of seven pence per share.

Angela Anna Cross: Additionally, share repurchases reduced our share currents by 4% over the same timeframe, driving keen out accretion of 7p per share. I want to dwell on this, but we continue to maintain a well-capitalised and liquid balance sheet with diverse sources of funding and a significant excess of deposits over loans. In summary, We are focused on discipline. This quarter is the first step in delivering the targets we laid out in February and which we are reiterating today.

I want to dwell on this slide, but we continue to maintain a well capitalized liquid balance sheet with diverse sources of funding and a significant excess of deposit overland.

In summary.

We are statements on disciplined execution.

This quarter is the first step in delivering the targets, we laid out in February and which we are reiterating today.

Thank you for listening meeting next Q&A and as usual. Please could you expect a maximum of two questions. So we can get around to everyone in good time.

Angela Anna Cross: Thank you for listening. Moving now to Q&A, and as usual, please could you stick to a maximum of two questions, so we can get around to everyone in good time. If you wish to ask a question, please press the star followed by 1 on your speakerphone keypad.

If you wish to ask a question. Please press star followed by one thank you Pat.

If you change your mind Im sure need your question. Please press star followed by Keith.

Okay.

Operator: If you change your mind and wish to remove your question, please press star followed by 2, and others. Our first question today comes from Joseph Dickerson from Jeffreys. Please go ahead, Joseph, your line is now open. Good morning.

Our first question today comes from Jason This is Ben.

From Jefferies. Please go ahead Casey your line is now open.

Hi, good morning, and thank you for taking my questions.

I just had a question on the a couple of questions on the.

U K business in the U S business just in terms of the U K.

Joseph Dickerson: Thank you for taking my question. I just had a question on the, a couple of questions on the UK business and then the US business. Just in terms of the UK balance sheet versus the NII performance, and I note that the NIM, which I'm glad we're not talking about as much anymore, was up two bits, and it looks like separately the current account... [inaudible] Goldberg, Coimbatore Venkatakrishnan, Angela Cross, Barclays [inaudible] How do we get the trajectory on the credit loss number? I mean, how should we think about that from the 610 basis points in Q1 to 400 basis points? by 2026, given that

Balance sheet versus the.

Performance might note that PMI is the NIM.

Which I'm glad we're not talking about as much anymore was up two bps and it looks like separately.

Mix shift is starting to settle down with $59 million of current account balances versus $60 billion last quarter. So if you think that we have kind of.

The rest of the mix away from current accounts I mean, clearly the bank of England data showed some flow into noninterest bearing accounts at least for the first two months.

Of the year. So just wondering what the outlook areas because it seems like that you can easily.

Over on your target for this year.

The NII guide there so any comments around those moving parts would be helpful.

And then in the U S.

I guess, how do we get.

Coimbatore Sundararajan Venkatakrishnan: I suppose unemployment could deteriorate in the U.S. or what have you, but clearly, part of the mix is also going to be coming from the GAAP portfolios. I'm just wondering how confident we are in the moving parts to go from 610 to around circa 400 basis points. And on the U.S., could you also just confirm that the late fee matter is embedded, already reflected within the guides that you've given for that unit at the upper end?

The trajectory on the credit loss number how should we think about that from the 610 basis points in Q1 to 400 basis points.

By 2026 given that.

I suppose unemployment could deteriorate in the U S or what have you, but clearly part of the part of the mix is also going to be coming from the GAAP portfolio I'm just wondering what what.

The confidence in the moving parts to go from <unk> to.

So around circa 400 basis points.

And on the U S could you also just confirm that.

Coimbatore Sundararajan Venkatakrishnan: Good morning Jo and thanks for the questions. I think just on the BUK question, I think it's worth just reflecting on slide 16, where we've shown you the balance sheet progression as a deposit matter. And I think you're right, we are seeing some stabilization in underlying deposits, and the way I read that is partly through the current account movement, but it's also, whilst you continue to see some movement towards time deposits, that rate of change has definitely slowed down.

The fee.

Late fee matter is embedded already reflected within the guidance that you've given for that unit at the update February. Thank you.

Good morning, Cherilyn. Thanks for the question.

I think just just on the UK question I think it's worth just reflecting on slide 16, where we've shown you the balance sheet progression as a deposit masa.

And I think Youre right we are seeing.

Tables Asian underlying deposits and the way I read it partly three the key.

Current account placement, but it all so whilst you continue to see some movement towards time deposits that rate of change is definitely.

Hi, Dan.

And what we see in Q1 is a mixture of that.

Deposit trends continuing.

Our pace.

Coimbatore Sundararajan Venkatakrishnan: And what we see in Q1 is a mixture of those deposit trends continuing, but at a slower pace, and what I would describe as normal seasonality. So in Q1, people pay their tax bills, and they also sort of pay off credit card bills, et cetera. And you also see that a little bit in business banking. So I think, you know, it's what we expected to see. From here on in, I think now in Q2 and beyond, you get almost beyond the ice season, which can cause a bit of noise in the U.K.

What I would describe as normal seasonality.

<unk> people pay the tax bill.

And they also sort of payoff credit card sales et cetera, and you also see that a little bit.

In business banking.

I think.

As we expected to see from here on and I think now in Q2 and beyond as you get almost beyond the Isa season, which can cause noise in the U K.

I think we would expect.

Those deposit trends.

To continue.

Coimbatore Sundararajan Venkatakrishnan: I think we'd expect those deposit trends to continue, so that's how I'd characterize those changes in the U.K. As far as the U.S. is concerned, I think we're looking at page 13, which is a replication. You know, we expected write-offs to increase in the US because delinquencies had been rising through last year, in line with the industry, and as the standard required us to, we reserved in So what you see in Q1 is really a switch around in the balance between reserve funding and actual write-offs.

That's.

How I'd characterize the changes in the UK.

As far as the U S is concerned.

I think worth looking at page 13, which is a replication of the slides that we gave.

Yes.

Year end, and we will not shy.

We expected right half to increase in the U S.

Delinquencies have been rising through last year in line with the industry and at the standard required to see we reserved in advance.

So what you see in Q1 is really a switch around and the balance between reserving an actual launch of the write offs.

And reserving is now starting to special back then.

2024.

Coimbatore Sundararajan Venkatakrishnan: So write-offs have gone up, and reserving is now starting to settle back down. So for 2024, we expect higher impairment charges in the first half, lower in the second half, and for the year as a whole to be lower than 2023, and in terms of the longer term trends in this business. I mean, you're right in terms of one of our objectives is to have a higher proportion of retail, but actually our Gap portfolio is very high quality, and the FICO balance that we've got in the book now is no different to what it was pre-Gap, and as we grow that retail proportion in time, what we also see is a roll-off of legacy, slightly lower FICO portfolios, such that the mix remains broadly similar to what it is today.

We expect higher impairment charges in the first half lower in the second half and for the year as a whole to be lower than 2023.

In terms of the longer term trends in this business.

I mean, you're you're right in terms of one of our objectives is to have a higher proportion of retail, but actually our GAAP portfolio is very high quality and the spike has balance that we've got in the book now is no different to what it was pre GAAP and as we grow that retail proportionate time.

But we also see it as a roll off of the legacy slightly lower haikai portfolio such that the mix remains broadly.

Similar to what it is today. So that's why we're guiding to this longer term.

Position of 400, and I am not sure what gives us confidence.

Coimbatore Sundararajan Venkatakrishnan: So that's why we're guiding to this longer-term position of 400, and that's what gives us confidence. And just to confirm on your final piece, yes, we did include late fees, the late fee matter, in our ROT projections. We'd expect those to come in, I mean, obviously, planning for May, they may be slightly later than that. We have offsets to come in the plan, but they slightly lag the imposition of the legislation, so you'll see a bit of a gap there, but that's what we expect. Thank you, Jo. Next question please. The next question comes from Benjamin Toms from RBC. Please go ahead, Benjamin. Your line is now open. Good morning.

And just to confirm on your final piece, yes, we did increase.

<unk> see.

The late Cmos.

RAC projections.

We'd expect that to come in I mean, obviously planning for may they may be slightly lighter than not.

Have offset to come in the plan, but a slightly lag the imposition of the legislation. So youll see if I got that but that's what we expected.

Thanks, Shannon thanks.

Thank you John next question please.

The next question comes from Benjamin Toms from RBC Pizza Hut Benjamin Your line is now open.

Good morning, Thank you for taking my questions.

The first is on the investment banking.

They've given European rates within the IP can you just give us more color on what's left to do that as our investments in people people, who infrastructural boats and when do you think we'll start seeing some progress.

Benjamin Toms: Thank you for taking my question. The first is on investment banking. As you noticed this morning, there's more to do on European rates within the IB. Can you just give us some more color on what's left to do there? Is that investment in people or infrastructure, or both? And when do you think we'll start seeing some progress for that product line? And then secondly, your E, sorry, NIM was up in the quarter by two basis points.

Products product line.

And then secondly, youll be.

So NIM was up in the courts by two basis points for NII was slightly down by about 2% could you give us some guidance what do you think that we've now seen a trough in your NII. Thank you.

Angela Anna Cross: The NII was slightly down by about 2%. Can you give us some guidance as to whether you think that we've now seen a trough in your NII? Thank you.

Yeah. Thanks, So let me begin.

And then I will pick up the.

Coimbatore Sundararajan Venkatakrishnan: Yeah, thanks. So, let me begin then, and then I will take up the point. So in European rates, it's people and a little bit of dealing with intensifying our plant penetration. So I would expect to be, you know, Hiring people. We've already got today a very strong presence in the primary markets in Europe in DCM and especially with government-bound trading. And what we're doing is supplementing the skills that we have on the trading desk. And I would expect, not in months but in quarters, to start seeing some of these people. Of course, it's a function of the market environment as well, but it's mostly an investment. Thanks, Ben.

So in European rates.

Diesel and a little bit of.

Dealing with.

Intensifying.

The client penetration.

So I would expect.

Hiring people with book.

Already today, a very strong presence in the primary markets in Europe.

In DCM, and especially with government bond trading.

And what we're doing is supplementing the skills that we have on the trading desk and I would expect.

Northern months and quarters to start seeing some improvement of course, it's a function of market environment as well.

But it's mostly an assessment.

Thanks Ben.

On your second question I think it's worth looking at a new disclosure that we've given you around.

Angela Anna Cross: On your second question, I think it's worth looking at the new disclosure that we've given you around the NII movement in the UK, which is on the bottom right of page 15, and what we're seeing here in the quarter is more stability in margin than we saw throughout 2023, and you can see there that there's still some product margin dilution which is coming from mortgages, and it's also coming from those deposit changes, but So the reduction in deposits that I've talked about before is also just more of a broader market-wide movement in terms of reducing mortgage balances.

NII and movement in the UK, which from the bottom right of page 15.

And what we're seeing here in the quarter.

More stability in margin than assembly.

Assembly so.

2023 and you can see that it is still still some product margin dilution, which is coming from mortgages and it's also coming from those deposit changes, but largely offset.

By the continued strength in the structural hedge and what's really going on here is balance sheet Nathan.

The reduction in deposits I talked about before or just more of a broad a market wide movement in terms of reduction in mortgage balances.

And so we continue to guide to at six one or circa $6 1 billion.

Angela Anna Cross: So we continue to guide to 6.1, or circa 6.1 billion for the full year, still confident in that guidance. And I'd just reflect perhaps on the NII across the group more broadly, which was stable year-on-year. And we do think, you know, that's taking into account not just BUK but the corporate bank, private banking, and wealth as well, and indeed our US card business. So we're pleased with that as a result. And that's a good position from which we can grow. The only other thing I would call out is, of course, that circa 6.1 is ex-Tesco.

For the full year.

So confident in that guidance.

And that just reflects perhaps on the NII across the group more broadly.

Which was stable.

Year on year.

And we do think that.

Into account not just the U K, but the corporate bank.

Private banking and wealth as well as indeed, our U S card business. So we're pleased with that as a result.

And that's a good position from which we can grow the only other thing I would call out is of course that segment $6. One is X Tesco.

Now expects <unk> to complete in the fourth quarter of this year.

Yes.

Angela Anna Cross: And we now expect Tesco to complete in the fourth quarter of this year. Okay, thank you, Ben. Next question, please. The next question comes from Alvaro Serrano from Morgan Stanley. Please go ahead; your line is now open. Good morning.

Okay.

Keith Ben next question please.

The next question comes from Albert <unk> from Morgan Stanley. Please go ahead. Your line is now open.

Good morning couple of questions one on the IBM.

A follow up on on provisions in the U S.

On the IP, there's a few moving parts that you've called out.

Alvaro Serrano: A couple of questions, one on IBM and another on a follow-up on provisions in the U.S. On the IB, there are a few moving parts that you've called out, but I also note your U.S. competitors. There's been a bit of a mix of messages in the pipeline. So I just wanted to get your thoughts on the seasonality you see this year, considering the one-offs we've seen in the quarter. [inaudible] Could we expect in markets, and also in DCM, maybe the numbers from Seattle? According to Doologic and other MPs, it could not be.

But I also note.

So your U S competitors, they've been it's been a bit of a mix sort of.

Messages on the pipeline. So I just wanted to pick your thoughts on on the seasonality you see during this year considering the one offs, we have seen in the quarter.

What seasonality.

Could we expect in markets and also in DCM, maybe the numbers of <unk>.

But.

According to Dealogic and other peers could it be.

More.

How do you see the pipeline there because as I said some of your peers with a bit more cautious and on on the U S cars noted your comments on.

Coimbatore Sundararajan Venkatakrishnan: How do you see the pipeline there? [inaudible] Based on that, when would you expect the link... I think it's important to point out that, typically, the seasonality of provision... The averages tend to be higher in the second half, for data points that we could look out for.

Around.

The reserve build.

Your new modeling.

Obviously, the 400 basis points to trend towards 400 basis points based on that when would you expect the delinquencies to peak.

Biggest conscious.

Typically the seasonality provisions as we tend to be higher in second half. So just looking for data points that we could look out for to confirm that 400 basis points in particular.

<unk> and delinquencies. Thank you.

Hi, guys.

Let me begin on the first one on the EIB.

So on seasonality I think in markets with one proviso, which I'll show you in a second you should expect the enrollment season.

Coimbatore Sundararajan Venkatakrishnan: So on seasonality, I think in markets, with one proviso, which I'll say in a second, you should expect the normal seasonality that you see, which is a little quieter in the summer and then picking up in the fourth quarter. And so far, the second quarter is behaving like second quarters, generally in the seasonal sense. We caught on to TCM, and the proviso I will make on overall fixed income markets is that there is an assumption there about when volatility comes. And obviously, that's very, very hard to predict.

See you soon.

It is a little quieter in the summer and then picking up in the fourth quarter.

And so far.

The second quarter's behavior second quarters, generally two and seasonality census.

Auto in PCM and to provide so I would make on overall fixed income market is there is an assumption there about when volatility comes.

And obviously, that's very very hard to predict.

We've seen since the first of November around trip up about 90 basis points in 10 years.

Coimbatore Sundararajan Venkatakrishnan: You know, we've seen since the 1st of November a round trip of about 90 basis points in 10-year gilts and approximately the same, slightly less than 10-year treasuries. And so the question really is, based on rate expectations, do they stabilize at this level, or is there further volatility? I don't know the answer. But in part, they are counter-effective.

And approximately the same slightly less than 10 year treasuries.

And so the question really is based on rate expectations today stabilize at this level or is there further.

I don't know the answer.

And but in part of that answer.

Thanks.

The next question, which is on PCL.

And I think there are two parts to this one is obviously rates so much higher than people might have thought six months ago.

Coimbatore Sundararajan Venkatakrishnan: The next question is on DCM, and I think there are two parts to this. One is, obviously, rates are much higher than people might have thought six months ago. But at the same time, or at the same time, three months ago, at the same time, spreads are much tighter. And so I think the tightness of spreads is going to be one important factor in the thinking of issuers on actually what they bring out to the market. You know, I'm expecting that you will continue to see people tempted by the lower spread. I'll take the second question.

But at the same time.

Three months ago at the same time spreads are much tighter.

And so I think the tightness of spreads is going to be one important factor into the thinking of issuers on actually what they bring to the market.

So.

I am expecting that he will continue to see people attempted by the lowest spreads.

Okay.

Second question sorry.

In terms of modeling what we what we expect is it for U S unemployment to go up from its Kevin.

Angela Anna Cross: So, in terms of modeling, what we expect is for U.S. unemployment to go up from its current level. You can see that in our IFRS 9 assumptions. What that would tell us is that we should continue to see some increase in delinquency.

Position and you can see.

You can see that.

Fresh nine assumption for Atwood.

Tell us just that we should continue to see some increase in delinquency.

And that said a couple of things.

Our expectations of that peak of unemployment are actually comes down quarter on quarter. So we've seen an improvement in the macroeconomic outlook, we believe for the U S and actually not economy remains robust so whilst we expect to see a continuation of drilling can say.

Angela Anna Cross: And that said, a couple of things... Our expectations of that peak of unemployment have actually come down quarter on quarter. So we've seen an improvement in the macroeconomic outlook, we believe, for the U.S. And actually, the economy remains robust. So whilst we expect to see a continuation of delinquency, we are content that we have very robust coverage.

We are.

Content, we have.

Have a very robust coverage youll see that our coverage is now over 11% on an ISR nine eight.

Eight and a half a percent on a seasonal basis that we are well covered.

Angela Anna Cross: You'll see that our coverage is now over 11% on an IFRS 9 basis. It's 8.5% on a CECL basis, so we're well covered. Where we had concerns, probably at the lower end of the FICO scores, we've taken action on credit lines. So we feel like we're preparing well, both in terms of provisioning and, indeed, our credit actions, if you like. But it is progressing as we expect it to, and given the IFRS 9 forecast we have for unemployment. But thanks for the question.

While we had concern probably at the lower end of the FICA scores, we've taken action on credit line. So we feel like we're preparing well back in terms of.

Provisioning.

Indeed.

Our credit actions, if you like but it is progressing as we expected to and given they are first nine forecast we have for unemployment.

Thanks for the question.

Next question please.

Our next question comes from Todd <unk> from Bank of America. Please go ahead.

Operator: Next question, please. Our next question comes from Rohit Chowdhuryan from Bank of America. Please go ahead. Hi, good morning.

Hi, Good morning. Thank you I had a couple on revenues place the first one.

Just coming to the investment bank, where revenue performance is well below pace, even after adjusting for the one offs the flank.

Rohit Chowdhuryan: Thank you. I had a couple on revenues. Please. The first one's just coming to the investment bank, where revenue performance is well below peers, even after adjusting for the one-off C flag. And that's particularly the case for SIC and fees, and even equities offer quite a low Q1 2023 base. So thanks very much for the color that you've given us in terms of the kind of product narrative. I was just wondering because you target a lot of market share gain and quite a lot of improvement in return on risk-weighted assets. I'm just wondering when we should think about that from a timing perspective.

Particularly the case for snake.

And even equity.

Quite a low Q1 2023 base. So thanks very much for the color that you've given us in terms of the kind of the product narrative I was just wondering because you can target.

A lot of market share gain quite a lot of.

Improvement in return on risk weighted assets I was just wondering when we should think about that from a timing perspective as a similar sort of timeframe.

Well, thank Curt was talking about in terms of the euro rates benefits coming through.

Angela Anna Cross: Is that a similar sort of time frame to what Venkat was talking about in terms of the Euro rates benefits coming through? So thinking about seeing those market share and ROWA benefits over the coming quarters, is that realistic for IB as a whole? And then the second one is just back on Barclays UK. Anna talked about mortgage flows being in line with 2022. I just wanted to clarify what you were talking about there.

<unk> market share in Alta <unk> benefits.

In the coming quarters is that realistically for the IP as a whole.

And then the second one.

Just back on Barclays UK actually.

And I talked about.

Just close being in line with 2022.

To clarify what you were talking about there is that sort of gross lending or is it approvals because because I think a pretty realistic, particularly euro are up year on year significantly. Thank you.

Angela Anna Cross: Is that sort of gross lending, or is it approvals? Because I think approvals, but particularly are up year on year significantly. Thank you. Okay, thanks Rohit. I'll take both of those questions. I'll start with the first one. Venkat might wish to add.

Okay. Thanks, Ron I'll.

I'll take.

Thanks for the question I'll start with first bank might wish to add.

So <unk>.

You're right. There are two particular court if you like in both equities and offtake numbers and expectations.

Angela Anna Cross: So, you're right, there are two particular quirks, if you like, in both equities and our FIC numbers. For equities, there's a one-off in the current quarter, which we called out. Actually, excluding that, the business is up 11% in dollar terms, which we actually believe compares very favorably to our US peers and demonstrates that we're making progress. We called out cash, and we also called out prime, and we called out equity derivatives, which, of course, is one of our focus areas, and Adam. It's sick, on the other hand.

In the current quarter, which we called out actually excluding that.

This is up 11% in dollar terms, which we actually believe compares very favorably to our U S peers and demonstrates that we're making progress and we called out cash and make ultra cold out prime and we called out equity derivatives, which of course is one of our areas.

On the other hand, you might recall this time last year, we were talking about some inflation specific income in that.

As color the comparison, a little bad EBIT after we split it down 14% in dollar terms, which we don't believe.

Angela Anna Cross: You might recall this time last year we were talking about inflation-specific income in there. That does color the comparison a little bit. But even after we split that out, it's down 14% in dollar terms, which we don't believe lines up, you know, too favorably against our U.S. peers. There are a few things going on here. We are pleased with the progress in Securitize products, and, you know, in previous quarters, we would have said we were small in that business. We still are.

And lines up.

T favorably against our U S peers, there's a few things going on and that we are pleased with the progress in securitized products.

And in previous quarters, we would have said we're small in that business is still off but we've been able to monetize it much more effectively because of the investments that we've put in and then of course banking I mean bank has covered that but feels like quarter on quarter progress.

Angela Anna Cross: But, you know, we've been able to monetize it much more effectively because of the investments that we've put in. And then across banking I mean, Venkat's covered that, but it feels like quarter-on-quarter progress. But when we stand back from it all, this is one quarter and a 12-quarter plan. And, you know, we do believe that we have the right plans to grow this business, but we're not going to see the results after one quarter.

Let me start back from that all this is one quarter and a 12 quarter plan.

And we do believe that.

We have the right plans to grow this business, but we are not going to see.

The result, after after one quarter I won't give you a timeframe but.

Hopefully, we'll be able to shape and regularly how we are making progress. That's one of the reasons why we set up.

Angela Anna Cross: So I won't give you a time frame, but, you know, hopefully we'll be able to show you regularly how we are making progress. That's one of the reasons why we've set up the reporting that we have, so that, you know, we're not seeing a huge change in that revenue over RWA number yet, but it's important to us, and therefore we're just showing you that. And on BUK... You're right to call me out on this, so let me be very specific. I was talking about gross flows. Goldberg.

Reporting that we have so that we're.

We're not seeing a huge change in that revenue as Roger do you a number yet but it is important to us and therefore, we just showing up and on the U K.

Youre right to call me out on that so let me be very specific I was talking about gross flies.

Apps are up 22% for the knock heads in the first quarter and interestingly, what we're seeing is.

Angela Anna Cross: Apps are up 22% for the market in the first quarter. And interestingly, what we're seeing is the purchase market coming back in the UK, which is really good after 23 being very much remortgage dominated. So that's really good.

The purchase market coming back in the UK, which is really good after 'twenty three things very much re mortgage dominated so that that's really good and we think thats outflow for us although it will take time for that to flow into the balance sheet, one thing I would.

Angela Anna Cross: We think that's helpful for us, although it will take time for that to flow into the balance sheet. One thing I would call out is we feel like we've taken a share in higher loan-to-value mortgages, which again was one of the areas we were seeking to do. But just to be really clear, this is going to take time to flow into the balance sheet. But thank you for the question.

As we feel like we've taken share in higher loan to value mortgages, which again was one of the areas. We were seeking to Dave just to be really clear. This is going to take time to flow into the balance sheet.

Thank you for the question.

Can we have the next question please.

The next question comes from Ed.

Operator: Can we have the next question, please? The next question comes from Edward Firth from Stifel. Please go ahead; your line is now open. Yeah, thanks so much and good morning, everybody.

Please go ahead. Your line is now open.

Yes, thanks, very much morning, everybody.

Can I just ask you about capital.

Firstly could you just update us if there is any update on the.

U S cards business I think it's Q3 I think I think we had $16 billion I'm not sure. If that was my number yield additional risk weighted assets.

Edward Firth: Could I just ask you about capital? And, firstly, could you just update us on the U.S. cards business? I think it's Q3. I think we had $16 billion.

I guess, if you put on a pro forma now that takes you down to 13, a little bit below.

Angela Anna Cross: I'm not sure if that was my number or your number, but additional risk-weighted assets, which I guess if you put on a pro forma now, that takes you really down to $13 billion or a little bit below. So I guess the first question is, is that still the right sort of number? And then the second question is, I sort of thought that the German consumer disposal would sort of pay for some of that, if that made sense, and therefore you'd still have a sense of capital in the second half. But it sounds like that's not going to be so likely now.

So I guess the first question is is that still the right to the number and then the second question is I would say.

The German consumer disposal would sort of pay for some of that if that makes sense and that we still have plenty of capital in the second half.

It sounds like that's not going to be likely.

Likely now so am I right about that.

Really be thinking Q3 is going to be.

Low points of capital.

And should we how should we think about that in terms of capital in the second half.

Angela Anna Cross: So am I right about that? Should we really be thinking Q3 is going to be a sort of low point for capital, really? And how should we think about that in terms of capital in the second half? Thanks very much. Spankbed, there's a lot in that, but let me try and keep up.

Yes very much.

Thanks, a lot and not but let me try and keep up.

Okay.

No change to our guidance around the U S cards.

Regulatory model changes that still expecting.

Angela Anna Cross: So no change to our guidance around the US Cards regulatory model changes; they're still expecting, still expecting that in the third quarter. So in terms of, you know, the numbers that you've read out, I understand, so I understand the math behind it and the pro forma. The thing I would say is, you know, there are obviously a lot of moving parts here. There's the organic, you know, generation of capital, which you can see in the first quarter has been strong.

At 16 still expecting.

In the third quarter.

In terms of.

The numbers that you've got I understand.

The math behind it and the price forming the thing I would say is there are obviously a lot of moving parts here that the organic.

And.

Generation of capital, which you can see in the first quarter has been strong.

Seasonality in <unk>.

Which will obviously, leaving the year goes on and typically we would expect Q1 to be.

Angela Anna Cross: There's some seasonality in RWA, which will obviously move as the year goes on, and typically, we would expect Q1 to be, you know, in the middle of the range or maybe even slightly below the middle of our range because of that. You've then got inorganic actions, and I'm not going to comment on the timing of the German card disposal, but I would say, you know, it continues to progress. And then you've got business mitigants.

In the middle of the range or maybe even slightly below the middle of our range because of that you've then got inorganic actions.

Im not going to comment on the specific timing of the German cards disposal for I would say it continues to progress and then you've got.

Business, Michigan, So I'd call out the Blackstone transaction and you can imagine.

We continue to work hard on <unk> efficiency across the group more broadly so in terms of sort of capital generation and distribution. Our plans remain as they were on the 20th of February in terms of like the priority priority first Reg.

Angela Anna Cross: So I'd call out the Blackstone transaction, and you can imagine that we continue to work hard on RWA efficiency across the group more broadly. So in terms of sort of capital generation and distribution, our plans remain as they were on the 20th of February in terms of both the priority, priority first reg, second shareholder distribution, third investment in the business, and we are still planning to distribute greater than 10 billion across 24 to 26, and we're still expecting to deliver broadly what we did last year, so around 3 billion in the current year.

Second shareholder distributions third investment in the business and we are still planning to distribute greater than $10 billion across 24 to 26, and we're still expecting to deliver broadly what we did last year to around $3 billion in the current year capital.

Capital Wise, we're on track to where we expect it to date.

Okay, that's great. Thanks.

Angela Anna Cross: So capital-wise, we're on track to where we expect it to be. Okay, that's great. Okay, thank you, Ed. Can we have the next question, please? The next question comes from Guy Stebbings from B&P Paribas. Please go ahead, Guy.

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

The next question comes from Dice getting from BNP Paribas. Please go ahead, Sir your line is now open.

Hi, good morning, Thanks for taking questions. One on box you can and then one on U S cards.

Guy Stebbings: Your line is now open. Hi, good morning. Thanks for taking the questions. I had one on Barclays UK and one on US cards. Yeah, thanks for the new disclosure on slide 15 on the NI bridge, as it were. Just looking forward, some of the dynamics look quite encouraging, but still, the guidance implies a slight headwind versus the Q1 run rate for NI. So I guess I would have thought the hedge and the product margin dynamics are pretty neutral from sort of Q2, perhaps even a slight benefit beyond that as we think about the hedge benefit and support from higher LTV lending, perhaps outweighing some of the headwinds. So I'm just trying to understand what the headwinds are for me.

Yeah. Thanks for the new disclosure on slide 15 on the Ni bridge as it were.

Just looking for Susan I mean look quite encouraging but still the guidance implies a slight headwind versus the Q1 run rate on an answer.

I guess I would've thought the hedge and the product margin dynamics are pretty neat Shaw from sort of Q2, perhaps even slight benefit beyond that as we think about the hedge benefit and support from our LTV lending, perhaps outweighing some of the headwinds.

So I'm just trying to.

What is the headwind.

Volume components still being a drag even post the seasonal effects that you called out in Q1.

And then on U S cards, you how much of the increase in core deposits with central banks I was wondering how much of that is it sort of dollar increase or how much has that been impacted by the fall in lending balances and perhaps a reduction and other funding.

Angela Anna Cross: Is the deposit volume component still being a drag even post the seasonal effects, as you called out in Q1? And then, on U.S. cards, you highlighted the increase in core depositor potential balance. I just wondered how much of that is a sort of dollar increase or how much of that is being impacted by the fall in lending balances and perhaps a reduction in other funding and sort of how are you going to grow the growth, drive that growth in core depositors as we look forward?

How are you going to grow the growth drive that growth in core deposits. As we look forward is it really about the changes in providing posit proposition to say not for some of the lending or is it pricing.

I'll just squeeze in a follow up on U S cards, you talk about mitigating the late payment fees I just wondered how much of what's embedded in the plan. As this is the market reacting to that versus what's more in your control. Thank you.

Angela Anna Cross: Is it really about the changes in providing the deposit proposition the same after some of the lending, or is it pricing? And if I can just squeeze in a follow-up on U.S. cards, you talk about mitigating late payment fees. I just wondered how much of what's embedded in the plan is sort of the market reacting to that versus what's more in your control. Okay, thank you guys. So just reflecting back on slide 15.

Okay.

Thank you guys. So just just reflecting back on on slide 15.

I mean I would guess.

To reiterate what I said before really 24, we see.

Angela Anna Cross: I mean, I'd just reiterate what I said before, that really, at 24, we see about, you know, a bit more stabilization in the margin because of the factors you call out and the strength of that hedge. And then also, you've got continued deposit migration, so even though it's slowing down, we still expect it to be there. And in terms of the mortgage market, while we're seeing, you know, encouraging signs in terms of the market, it is going to take a while for that to start flowing into the balance sheet. So you see a balance sheet that contracts before it starts to expand, and that's really what underpins Circa 6.1. So it's playing out in the first quarter sort of as we expected it might.

About.

A bit more stabilization in the margin because of the factors you call out and the strength of that hedge.

And.

And then also you've got continued deposit migration, so even though its slowing game, we still expect it to be that.

And in terms of the mortgage market, while we are seeing.

Encouraging signs in terms of the market is going to take a while for that to start flowing into the balance sheet. So you see a balance sheet that contract.

Before it starts to expand and that's really will underpin.

Oster has $6 one.

And so it's playing out in the first quarter.

As we expected at night in terms of your <unk>.

Question <unk>.

Deposit and.

It is exactly what you say because we're expecting really this is a product led.

Angela Anna Cross: In terms of your question 2A on dollar deposits, it is exactly what you say, so we're expecting this to be a product-led and actually, you know, the way we go to market with those dollar deposits reaching more directly to consumers. And again, this is the first quarter and the 12th quarter plan. It's going to move around a little bit, and actually, I'd be looking for longer-term trends there, really, but it's product propositionally driven.

And actually the way we go to market with a dollar deposits reaching more directly.

And CMS.

And again this is the first quarter and a 12 quarter plan, it's going to move around a little bit and actually are they looking for longer term trends.

Product proposition really driven.

And then finally, just in terms of the market Unlike phase.

I think we did see some price changes coming through which is sort of what we anticipated and we would expect to participate in that which is why I said late fee legislation happens first.

Angela Anna Cross: And then finally, just in terms of the market on late fees, I think we do see some price changes coming through, which is sort of what we anticipated and we would expect to participate in that, which is why I said late fee legislation happens first. Pricing changes will drip through over time. The only other thing I would say is, of course, given the nature of our business, we are able to share the impact of those late fees with some of our partners.

Rising changes, we'll do it through over time, the only other thing I would say is of course, given the nature of our business.

We are able to share the impact of the late fees with some of our partners. So you might expect the impact to be slightly less than it would be more market wide.

Angela Anna Cross: So you might expect the impact for us to be slightly less than it would be more market-wide. But overall, you know, we considered all of that and included it in the ROTI sort of pathway and guidance that we gave you on the 20th of September, with no change. Thank you, Guy.

Overall, we considered all of that and included it in the right set of pulp pricing guidance that we gave you in the 20th et cetera.

And those change.

Okay.

Thanks, Keith Guy next question please.

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

Operator: Next question, please. The next question comes from Chris Kant from Autonomous. Please go ahead, Chris; your line is now open.

Good morning, Thank you for taking my questions.

One very quick one to follow up on.

Last question. Please could you just give us some quantification of the expected annualized impact surrounds linked fee changes for your U S consumer business I think it would be helpful too.

Chris Kant: Good morning, thank you for taking my question, and one very quick one to follow. Could you just give us some quantification of the expected annualized... Secondly, on NII, just conscious... You do have this £120 million Bank of England levy, you're indicating that there are... offsetting revenues this year, and I understand that's going to go through the NII. When I think about what swap markets have done, Paul Webb, Coimbatore Venkatakrishnan, Angela Cross, and Barclays benefit from coming through relative to plan from this Bank of England funding. Why hasn't the NII guidance been nudged higher? There's something else going on in there, which is maybe a little bit worse.

Understand what sorts of initial impact youre expecting there is weakness in that segment.

Kind of industry wide.

<unk> mitigation by the time the first question. Please secondly on <unk>.

Hi.

Consciousness.

Do you have $120 million bank of England, Leslie Youre, indicating.

$17 million offsetting revenues. This year I think you said $50 million net impact here one.

I'm not going to go through the NII line when I think about what the swap markets have done since your guidance would have been struck at the full year I guess, it's a bit more supportive slightly higher average base rate for this year slightly higher average swap rates.

<unk> 70, or so million.

Benefit to come through relative to plan from this bank of England pumping adjustment.

<unk>.

The NII guidance being much higher.

Is that just prudence.

Anything else going on in <unk>, which is maybe a little bit worse.

Expected.

I guess related to that what is your guidance around NII sensitivity to base rates at this point. Please you havent given us anything in the slides.

Some time, given the relative size of your hedge versus peers and some of the commentary you gave.

<unk> results last year I did one directionally, whether in the very short term base shrink.

Angela Anna Cross: I guess, related. What is your guidance around NII sensitivity to base rate at this point, please? You haven't given us anything in the slide for quite some time, given the relative size of your hedge versus peers. Okay, thanks Chris. I will take those.

Not coming down those margins.

Slightly negative near term.

Thank you.

Okay.

Thanks, Chris.

Ill take.

Take size and so on the first one we haven't quantified that publicly however on the 20th of February. We did include in the flight path you can see that it's actually a net negative as of the parents. So you can see it being a drag on the RFP, but it is part of that.

Angela Anna Cross: So on the first one, we haven't quantified it publicly. However, on the 20th of February, we did include it in the flight path. You can see that it's actually a net negative over the period, so you can see it being a drag on the ROT, but it is part of that. I would just reiterate that I would expect it to be slightly less than other market participants are calling out, just because of the impact from the partners.

I'd, just reiterate I would expect to see slightly less than that in other market participants some calling out just because.

Just because of the impact from the partners.

So in terms of NII and more generally we continue to guide to circa 10 seven.

Angela Anna Cross: So in terms of NII more generally, we continue to guide to circa 10.7 for the full business excluding the IB and head office and to circa 6.1 for the UK. And you're right, there have been some movements in swap markets, but of course, they do move around a great deal, and what we did on the 20th of February was try and underpin our targets with prudent macroeconomic assumptions. Of course, we monitor those very regularly, we consider the impacts on the business, but we're not going to mark to market those targets on a quarterly basis.

For the full business, excluding VIP and had our first and second six one.

For the U K and you're right there have been some movements in salt market, but of course, they do move around a great deal and what we did on the 20th February was try.

<unk> hundred 10 <unk>.

Ill get way.

In our trading macroeconomic assumptions.

Of course, we monitor that very regularly considered impacts on the business, but we're not going to marked marketplace targets on a quarterly basis.

Just mathematically you're right we would expect some offsetting income from the bank of England, I think we called out around $70 $75 million.

Angela Anna Cross: You know, just mathematically, you're right, we would expect some offsetting income from that Bank of England levy. I think we've called that out, around 75 million, but one quarter in, we're not going to adjust the targets that we've given you. In terms of your specifics around the sensitivity, I would say, given the scale of our hedge, we are, and always have been, less sensitive to immediate changes in base rates That still remains true.

One quarter, and we're not going to adjust the targets.

We have given.

In terms of your specifics around the sensitivity I would say given the scale of our hedge we are.

<unk> has been less sensitive to immediate changes in base rates that will remain true.

<unk>.

Sure.

Any near term change in rates is less important to us than just a mechanistic rolling of the hedge.

Angela Anna Cross: Any sort of near-term change in rates is less important to us than just the mechanistic rolling of that hedge quarter in, quarter out, and there's nothing that I would call out as a negative in terms of rates being higher for longer. Of course, you might expect some benefits and liabilities, but there might be some offsetting matters in terms of asset formation, for example. So, that's why, at this stage, we're really happy with the 6.1 and the... Okay, thank you Chris.

Hedge quarter in quarter out.

And there is nothing that I would call out as a negative in terms of.

The rates being higher for longer of course, you might expect some benefits and liabilities, but there might be some offsetting.

Matches in terms of asset formation for example site. That's why at this stage, we're really happy with the $6 one in the $10 seven.

Okay. Thank you Chris.

Perhaps we could go to the next question. Please.

The next question comes from Robin down from HSBC. Please go ahead more than your line is now open.

Operator: Perhaps we could go to the next question, please. The next question comes from Robin Downs from HSBC. Please go ahead, Robin; your line is now open. Good morning.

Good morning.

Just two.

Quickly follow up on Chris So just to confirm.

So the 300 million reduction.

Within the U K.

Robin Downs: Just to quickly follow up on Chris's concern, just a concern. There's a 300 million reduction in NII within BUK. That was set before the BOE levy kind of changes. I'm guessing you're going to get, what, about $50 million, and I benefit within BUK. Just to completely clear that up. The second question is a much broader question.

That was before.

Theory.

Kind of changes.

I guess, you would have a depth of about $50 million.

Benefit within the UK.

Just.

Hello.

Second question is on a much broader question.

<unk> grown our target for this year of Grace.

Some.

I think consensus is currently around $8.

Angela Anna Cross: Officer, you've got an ROT target for this year of greater than 10%, but I think consensus is currently around 8.8. When I look at the numbers, it looks like you need about a billion in revenue growth, based on the old 2024 ROTE bridge, and that's just not something that consensus or my own forecast currently have factored in. I think consensus has. That's about $250 million of income growth. I guess there must be great disparity between them in the IB given you've given us fairly precise guidance on things like NII elsewhere.

When I look at the numbers it looks like you need about 1 billion revenue growth base.

Based on your 2020 for Archie Bridge.

It's just not something with consensus.

Or borrowing forecast currently factored in I think consensus.

It was about $250 million of income growth.

I guess, the greatest pharmacy them to be.

You've given us for the precise garden something about MRO.

Elsewhere I'm just wondering if there's any.

Any kind of.

So you can kind of point to say look.

Angela Anna Cross: I'm just wondering if there's any kind of... anything hard and fast you can kind of point to and say, look, I think consensus is just wrong on this number when you look at our model. Any color there would be greatly appreciated.

I think consensus is is just wrong on this number.

When you look at our models.

Any color around that would be.

Alright I appreciate it.

Okay.

Thanks, Thanks Robyn.

On the first one and all.

Our circa six one for the U K was struck for the <unk> brand, which was before these b.

Angela Anna Cross: Okay, thanks Robin. So on the first one, our circa 6.1 for BUK was struck for the 20th of February, which was before these BOE changes, so just mathematically, that is true, but we are only in the first quarter, which is what I'd reiterate. We're happy with our progress thus far. 12.3 that we delivered in the first quarter is exactly where we thought we would be. So, and within that... The constituent parts are what I was looking for, so...

These changes.

As an asset class that is changed.

But we are in in the first quarter, which is why I'd just reiterate we're happy with our progress thus far.

<unk> are greater than 10%.

The 12, three that we delivered in the first quarter is exactly where we thought we would take.

And within that.

Constituent parts.

Well I was looking for.

Number one real stability in income, particularly in NII, and particularly in our financing businesses.

Angela Anna Cross: Number one, real stability in income, particularly in NII and particularly in our financing businesses. They provide real ballast to our income overall. There's 63% of income in the quarter, and that's what we're focused on growing. It gives a really good base for us to deploy the RWAs into the UK and to focus on those areas within the IB.

They provide real value to our income overall, the 63% of income in the quarter and that's what we're focused on growing it gives a really good place for us to deploy they ought to be related to UK and focused on those areas within the IP.

Second thing I was looking for.

Delivery of cost and efficiency.

<unk> for the full year, we delivered $200 million of that.

The first quarter. So we are on track that third thing was continued good credit conditions and again we've seen.

Angela Anna Cross: We've said a billion for the full year, and we delivered 200 million of that in the first quarter, so we're on track there. The third thing was continued good credit conditions, and again, we've seen that. So good credit performance at 51 basis points, really at the bottom end of our sort of through the cycle range, which again gives us a good basis to grow from, and then finally, the capital position. So there's nothing different in our performance versus what we expected when we spoke to you on the 20th of February. However, there probably are some changes in shape relative to last year. For example, last year we had an impairment profile that was very back-end loaded. This year, it's pulled forward, driven very much by US positioning.

Good credit performance of 51 basis points.

Really at the bottom end hospital treated cycle ratio.

Again gives us a good basis to grow from.

And then finally the capital position.

So there's nothing different in our performance versus what we expected when we spoke to you on the <unk> on the 20th of February.

However, there probably are some changes in shape relative to law.

Yeah.

So last year, we had an income sorry, we had an impairment profiled at a site backend loaded this year.

Forward driven very much by the U S positioning.

The second thing is we did see quite a sharp change in NII.

Sorry.

Angela Anna Cross: The second thing is we did see quite a sharp change in NII, sorry, NIM last year driven by the deposit mechanics that really started to kick in in the second and the third quarter. The third thing is we did see a drop-off last year driven by the cash flow hedge reserve and the way that was impacting the tangible equity of the group. And then finally, I'd also call out that in the current quarter, the Bank of England levy has a 70 basis points impact.

And then last year driven by the deposit.

Mechanics that really started to kick in in the second and the third quarter.

Third thing is we did see a drop off last year driven by the cash flow hedge reserve in highway that was impacting the.

The tangible equity a degree.

And then finally I'd also call out in.

In the current.

Quarter.

Bank of England, London has a 70 basis point impact now, we expect that to be not quite neutral, but near the mutual end of the year as a whole so that is depressing the first quarter.

Angela Anna Cross: Now we expect that to be, not quite neutral, but nearly neutral over the year as a whole. So that is depressing the first quarter, the first quarter ROT. Of course, last year also, after a strong first quarter, we saw a dramatic fall off in IBG, in particular, to a decade low.

On the first quarter.

And now.

Of course lost share all side after a strong first quarter, we saw a dramatic fall off in RBC.

To assure a decade lows.

Yeah for the home market.

And we're seeing more positive signs this year.

Angela Anna Cross: We are seeing more positive signs this year, so I think it's quite a nuanced question, but overall, you know, we still believe that we can hit greater than 10% for the year, and we're exactly where we thought we'd be at this point. Thank you. Thank you. Just as a reminder, if you would like to ask a question, you may do so by pressing star followed by one on your telephone speaker. Our next question comes from Jonathan Pearce from Numis. Please go ahead, Jonathan, your line is now open. Morning guys, a couple of questions Bobby.

I think it's a nuance question, but overall, we still believe that we can have greater than 10% for the year and we are exactly where we thought we'd be at this point.

Great. Thank you okay. Thanks Robyn.

Next question please.

Thank you just as a reminder, if you would not close a question you may do so at the system software.

Thank you Pat.

Our next question comes from Jonathan Pierce from Numis. Please go ahead, Jonathan Your line is now open.

Morning, guys.

The questions Martin.

But from a hedge and then a broader question.

16.

On the hedge.

Thank you probably saw in the last quarter. This hedge now since.

Jonathan Pearce: Back on the hedge, and then a broader question, if you don't mind, please. On the hedge, I think you've probably put us on about a quarter of this hedge now since... medium-term rates moved above 3%. Yet the yield on it is still only 1.8%, and it sort of implies that the rest of the hedge, the slightly older hedges..., and Angela Cross, Barclays, and Barclays Bank, Barclays and Angela Cross, Barclays and Angela into 2027-28 as well.

Medium term rates moved above 3%.

Yes, the yield on this and showed only one 8%.

That implies the rest of the hedge the hedge.

Thank you.

I mean closer to 1% so I'm just trying to square that with the 1.5% materials the guidance <unk> given over the next few years.

It's not just a prudent number you've thrown out there and actually the material yield on the hedges over the next few years.

It is close to the one rather more than a half percent or.

It's the last sheet fairly decent tailwind expected.

Into $2027 20 earnings as well.

The second question, it's on connected but when I look at 2026 consensus RFP.

Jonathan Pearce: The second question is not entirely unrelated, but when I look at 2026 consensus ROTE, and I re-base for a 30 billion revenue number rather than where consensus is in the mid-28s, you get into your target. So I assume on that basis you recognize the consensus PNAP numbers, out end of 25 and into 2026. And then there's a final question on this, maybe to Venkat.

And I lead base for 30 billion revenue number relative to what consensus is in the mid <unk>.

Get it until target.

I assume on that.

As you recognize the consensus numbers.

And the 25 2026.

And then sorry.

Final question on this maybe to the banker.

The Delta.

Targets.

Instead of a commendable, but you don't get Paydowns in full and I see that the 14%.

Angela Anna Cross: The altered targets are incredibly commendable, but you don't get paid out in full unless you hit the 14% ROCE in 2026, but I'm just wondering... What's your thinking there? It looks extremely aggressive given consensus doesn't even believe you'll make the 12%. So why did you put a 14% ROTE target into that laser cell set?

RMC in 2026, so I'm just wondering.

Most of you thinking it looks extremely aggressive given consensus doesn't even believe youll make the 12%. So why do you think puts at 14%.

Alrighty target into box.

Ladies Delta.

Okay.

Okay.

Jonathan Thanks for the question I think there are three.

Angela Anna Cross: Thanks very much. Okay, Jonathan, thanks for the question. I think there are three, so let me deal with the first two and then I'll pass the third one to Venkat. No, it wasn't prudent.

So let me deal with the first two and then I'll.

I'll pass the third one to think so on the hedge.

No it wasn't prudent.

The actual number and so we do expect the average maturing yields the one 5%.

Angela Anna Cross: It's the actual number. So we do expect the average maturing yield to be 1.5%. We do expect 170 billion to roll from 24 to 26, inclusive. And, you know, we haven't talked about the tailwinds for 27 and 28.

We do expect 170 billion to rone.

For 2016.

<unk>.

And.

We haven't talked about the tailwind for 27% 28, we talked about the tailwind for 2006.

Which we said given the assumption that we gave.

Angela Anna Cross: We talked about the tailwinds for 26, which we said given the assumption that we gave you or the indicative number, rather, that we gave you of a 3.5% swap rate, that would add, you know, 2 billion or around 2 billion of income by 2026 relative to 23. And you can see the progress that we've made, made in the quarter. So, you know, for 2024 alone, when we were at year end, we locked in 3.8 billion. Now we've locked in four.

Or.

Indicative number rather that we gave you a three 5% swap rate.

That would add.

2 billion around $2 billion of income by 2026 relative to 'twenty three and you can see the progress that we've made.

And in the quarter.

For 2024 alone when we were at the year end, we locked in $3 8 billion.

Now we've locked in for.

And that compares to the type of growth hedge income of $3 six last year. So there is a very powerful tailwind.

Angela Anna Cross: And that compares to a total gross hedge income of $3.6 million last year. So there is a very powerful tailwind that comes from this hedge. To your second question, you know, we do, I won't specifically comment on the consensus numbers that far out, but we do expect an increase in the tailwind, sorry, an increase in TNAV. We're seeing it grow as we expected, both because of the mechanics of the cash flow hedge reserve, and you might recall, we called that out specifically on the 20th of February.

That comes from this hedge.

To your second question, yes.

We do our specifically comment on the consensus numbers that far out, but we do expect an increase in the in the tailwind sorry, an increase in <unk>, we're seeing it grow as we expected.

Because of the mechanics of the cash flow hedge reserve and you might recall, we called out specifically on the 20th of February It was one of the moving parts as a headwind to rate case.

First in 2024 and beyond into 2026.

Angela Anna Cross: It was one of the moving parts of the headwind to ROTI, both in 2024 and beyond into 2026. So it's being driven by just the mechanics of the cash flow hedge reserve, it's being driven by AP accretion, and, of course, it's being driven by the reduced share count over time, and that's really why we're seeing it move forward, and clearly, as a management team, we're most focused on the loss of those two, just noting that the cash flow hedge reserve can move around quite a bit Venkat?

So it's being driven by just the mechanics of the cash flow hedge reserve is being driven by AP accretion on of course is being driven by the reduced share count over time.

That's really why we're seeing it in the forward and clearly as a management team. We're most focused on the loss of those two it's.

Noting that the cash flow hedge reserve can move around quite a bit.

Accretion and really not buyback.

<unk> creation that where flagstone.

Yes, just.

And now to pick up on that point on piano.

Very important fundamental improvement in the back when you just see the P&L.

Coimbatore Sundararajan Venkatakrishnan: Yeah, I mean, Anna, to pick up on that point on TNAB, it is a very important fundamental improvement in the bank when you just see the TNAB go up. And, as Anna said, we emphasize the second and third parts, which are AP accretion and share count. Coming back to the LTIP, well, first of all, as should be clear, the LTIP targets and the LTIP and the composition and levels of compensation for both Anna and me are set by the board.

MFS emphasized the second two pas switches.

Accretion and share count.

Coming back to the OTA.

First of all it should be clear.

<unk> targets in the area.

The composition and level of compensation for both and then offset by the board.

And normally there is.

It aligns to obviously these financial targets, but there is always a little bit of a stretch.

Coimbatore Sundararajan Venkatakrishnan: And normally, in the LTIP, it's aligned to obviously these financial targets, but there's always a little bit of stretch in them so that, you know, it guides the incentivization of management, and that's all there is to it.

So that.

Sure.

Got it.

Centralization of management.

That's all there is to it.

So I think with that.

Questions. If I may I'd, just like to say, thank you very much for your time.

Coimbatore Sundararajan Venkatakrishnan: So I think with that, our questions are over. If I may, I'd just like to say thank you very much for your time. As Anna and I have emphasized throughout, we are on track with the three-year plan that we laid out in February 2024. We both look forward to seeing many of you on the road and on the 18th of June for our business deep dive with the UK Corporate Bank. So, thank you very much.

And then.

Throughout we are on track with the three year plan, which we laid out in February 'twenty to 'twenty four we brought on and I look forward to seeing many of you on the road.

On the 18th of June for our business deep dive in the UK corporate bank. So thank you very much.