Barclays PLC (BCS) Presents at Bank of America 30th Annual Financials CEO Conference 2025 Transcript

Barclays' Group Finance Director, Angela Cross, affirmed confidence in achieving the bank's 2026 financial targets, noting substantial progress in its UK Risk-Weighted Assets (RWA) growth strategy. The bank has deployed £17 billion towards its £30 billion UK RWA target for 2024-2026, including £8 billion from the Tesco acquisition and over £2 billion per quarter in organic growth. This strong deployment rate underpins management's assurance in meeting the overall target, with new financial targets anticipated before the current ones expire.

Analysis

Barclays' management has publicly reaffirmed strong confidence in its ability to meet all 2026 financial targets, with particular progress noted in its UK growth strategy. At a Bank of America conference, the Group Finance Director, Angela Cross, confirmed that the bank has already deployed £17 billion towards its £30 billion Risk-Weighted Asset (RWA) growth target for the UK business between 2024 and 2026. This deployment, with six quarters remaining in the plan, is significantly de-risked by the inclusion of approximately £8 billion from the Tesco bank acquisition. The remaining growth has been organic, running at a consistent rate of just over £2 billion per quarter, which provides a clear trajectory for achieving the full target. This strong execution pace reinforces the credibility of the bank's strategic plan and management's guidance. Furthermore, the commitment to issue new financial targets before the current cycle expires suggests a forward-looking posture and confidence in sustained performance beyond 2026.

Key Decisions for Investors

• Investors should view the on-target deployment of UK RWAs, driven by both the Tesco acquisition and consistent organic growth, as a positive validation of management's execution capabilities.
• The demonstrated pace of RWA growth provides increased visibility into a key driver of future UK division revenue, warranting a potentially more constructive stance on the bank's forward earnings profile.
• Attention should be paid to the forthcoming announcement of new financial targets, as their ambition and scope will serve as a critical catalyst and an indicator of management's long-term growth expectations beyond 2026.