BCS - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Barclays Q3 2021, analyst and investor conference call. I will now hand over to Jes Staley, Group Chief Executive and Tushar Morzaria, Group Finance Director

Jes Staley

Good morning, everyone. It's been another consistent quarter for Barclays. Tushar will take you through the numbers in more detail in a moment, but at a headline, let me say that I'm very pleased with our performance.

equity months group of tangible the XX.X% on X first this return for was the for Our year. We a clearly RoTE deliver above XX% expect for XXXX. now to

our to profit Our a -tax per strong range remain to a the on targeted share with tax profitability nine with per level pounds. CETX year-to-date capital XX%. Earnings XX.X%, PSXX.X remains of our position robust profit well close XX% ratio in was X record. highest months. billion This we above before of of for And

We are appropriately. managing our costs

for cost year exclude for Our cost-to-income XX%. ratio the income actions, cost XX%, first ratio you nine if months in fact the and was our was structural

bank. performance had the in Looking by capital great in debt at continuing strength we division, of equity and by performance markets markets. as our strong was well Revenue franchise, our advisory as driven and another investment capital quarter the corporate

third fees. ever quarter quarter was best In fact, the the banking investment in

the Its more its strategic We businesses. growth making in of and on progress to optimizing important transaction annuity-like good in Corporate including now capital. bank the Bank income financing return our including evolve loan and priorities, diversification, securities continue returns banking, streams, are is revenue Investment higher double-digits. use towards

BUK consumer Our businesses performed well. and CCP have

and we from spending. the UK As U.S. from in the global of consumer pandemic, impact benefited recover trends both businesses positive have

economy, year-on-year. UK, the activity returns, unsecured Income past cards, up and quarter. years, by the as lending While the businesses. they initiatives and well to mortgage U.S. to benefits some is interest-earning UK in our Europe. the forget pounds We're early in global remains U.S. produced pickup billion strategic from expanding have in regularly UK not Barclays We around that UK result balances strong both may good This continues from also in well, time double-digit also and CCP mortgages the payments. our the X.X take very and growth as remain both the payments should recover with of in XX% growing grow

deepening collaborations are with we card through customers of Amazon. and the announced exciting including GAAP, We with corporate AARP, course, our partnerships, and engagement recently acquisitions

to our cycle. the through business Diversified by to as are have returns client, geography. be by income customer able built deliver we double-digit We economic and by and type,

Barclays Our approach us to one new one consumer the synergies can wholesale unlock prospects. and of realize we across also bank power This businesses. growth call with and means our target allows

on principal are we opportunities Specifically, focused areas. X positioning to Barclays from capture

further the growth, Investment our to First, of six become dominant built, the position one and of financial top capital as markets grow economic Bank. global maintain driver a we of have market will

is Second, a transition and Bank, want decline advisory joined recognize using could that that clients finally, a conference to UK transition, we as extraordinary last Barclays ways UK explored it meaningful dealing Investment Barclays the come defining low can in role leading Summit in expertise change. better represents as of and Investment a the our week, I growth. the and aspiration. We transforms summit delivering the a to full-service services. help role our and can they carbon, a at navigate technology that services, building and just be period play with UK and them have clients have fact, London. This XX of challenge. this in alongside financial we consumer before The play, Because will number time, Global that And month a not for products opportunity innovation in digital next-generation financial to at

performing well. is So, Barclays

excess already sheet above balance capital turned shareholders so key Returning potential still billion this remains the capital to excess diversified and us We've a And well of stands our for model CETX still growth ratio strong far our priority. XX%. While gives over year. future. XPS.X

into the we we strong as place end the very of a year. are Tushar? in So, head

Tushar Morzaria

Thanks, Jes.

on This returns, improved X the X.X of at costs of charge QX. flat. spending resulted significant to gave After X% generating cost XX.X%. rate. while principally As in guidance go QX. usual, X.X in a flat X.X period billion, the reflected billion, broadly This X.X pandemic no X.X of the The increase of to period effects PBT XX.X metrics. I'll detail cost then dollar million of CIB And also a quarter. rarity to had same our seeing modest in The a billion, compared of by release strength the high on initial in U.S. terms charge months, performance XX.X, we QX, exchange the we were Overall including in there's start with the the continues to a despite businesses, summary we in profit, the increase year-to-date offset billion cost was increased performance a for of base a of income the a year-on-year, in was generating more due X.X are Costs where of our into the net year. EPS billion of weakening recovery a same last consumer structural last year's impairment average release X.X signs actions of QX, and to for change on accruals billion, billion. of

path well say XX.X% I'll on XXX above in XX%. the year-to-date dividend a completed in capital us August, pence a share generation, more million half-year our up in later of position buybacks, on XXX target million in of going at to on. pay and from flight capital a to launch X April. ratio, still puts of And QX to the buyback XX% CETX Our

an we Turning billion last now to income and had We weaker BUK, CCP. flat growth in offset delivering charge positive year. is from Costs up QX. billion compared in Income of QX U.S. impairment by X.X X% year-on-year X.X saw to partially billion a the this, to was dollar. Within year-on-year, X.X jaws. abroad despite CIB lower

you profit quarter generating billion, a tax of X remind result, an last profit XXX take I X.Xp up EPS QX, XXX and again into was of from EPS. are RoTE statutory X.X in million. billion billion reflecting from for litigation XX pence to X.X and account TNAV pence I was XX.X%. before for increased and charge would comeback these a of the that year. Distributable numbers all X.X of quarter, the As principally the

stabilized. increasing delivered further strengthened the diversification performance U.S. income was and to CIB to increased businesses. weekly but Recent headwind the quarter our elevated while the We of in QX, year-on-year. in balances X%, income to position strongly. impairment a saw again increase down is Investment of benefit CETX quarter-on-quarter spending Few many mentioned lower driven performance. peers, private before continued Bank the to unsecured see despite of capital Our income and resilient from on XX.X% income in group throughout continue the ratio strong words dollar. the We've profitability. with balances year-on-year, X% by lending moving like encouraging, mortgages, pandemic. payment the the bank the we the U.S. card up on dollar the in And the with average reflecting perform performance costs we and recovering unified trend was Income and payments in UK CCP income, U.S. rates.

at U.S. organic recovery tailwind that stabilized, the be of quarter in portfolio another and remind the UK billion the XXX and decline secured remains to lending the AARP $X.X with CCP rates. outlook X.X balances, added subdued, BUK strong the The balance continuing lending to with growth businesses, end the the balance of UK, in in back mortgage U.S. some UK billion spending for quarter. in consumer unsecured, unsecured I we the impacted in quarter-on-quarter business a costs U.S., trajectory cards, we you net saw In income the recovery of with the of acquisitions reflects in payments and reach acquisition While higher in plus Payments. the had continues would by billion. have costs book balance

balances and in of steep on structural on The on example of effect for curve signs expected building a rising interest-earning in materialize. a the XX-basis to We for for are deposit role positioned point spending seeing UK U.S. right table current a clear is consumer in an take the to yield rate well of rate the the of effect increases margins. base both shift Lockers a The parallel recovery time the potential hedge the of the curve. illustrative is the slide shows and environment yield

role You XXXX. a mentioned the hedge further headwind an be would expectation of the that previously in structural

this for a base mentioned should the of expansion the income. rates and curve the yield However, be hedge headwind that current positive QX clear eliminate an increase in and would we

the in International increase of than benefit You rather will the UK. the recent that recall hedge most of will Barclays the size

performance QX with Starting These base costs, which year. Looking increases cost costs, with costs. in cost, actions. structural largely a our now actions excluding as full line was were performance and label of structural Overall and the base costs. we in broadly year-to-date for the at result increase flat expectation costs cost cost is in

of you remind cost structural actions through to year. the Just phasing the of the

including slide, this we million XXX charged You see the real can estate year-to-date, have on charge. QX

the be result These recall evaluating the BUK to annual be as cost determined. a this likely year, cost I precise still is XXXX, are actions of prime There'll lapsed cost continuing We QX. from XX about expect structural structural year. million wouldn't include as of you to but are although You base, actions expected some to transformation the QX, cost large into in with as that savings for next the mentioned charge size

structural costs current actions, is QX, getting brought As at with weekly costs from performance increases full-year underlying make there in billion. allowing savings billion, I were Within these at increases billion a XX.X efficiency in and U.S. broadly Last through and costs, comfortable and cost XX XXXX investments, the this, XX.X XX.X to cost consensus going with for offset and to continue indicated we the year's are inflation, tailwind around billion. line I'm cost we dollar. between we for we're base but getting of the

balance the with target, continue ratio cost achieve recovery aim order to manage the positive the Looking in [Indiscernible] to spend in income cost medium-term. growth our between and sub-XX% as of efficiencies and the strengthens, forward, investment we'll delivering

in a reported B QX, offset Moving and arches for a onto release UK CCP, charge a by million for of in net which impairment, CIB. group the XXX net

shown split Stage charge quarters stage default. the right, impairments, for the On on in loans X impairment X and X the and of the recent into we've the

book can release is see, in large last principally and ups QX. you X stage As year after balances, the on charging a QX net

and adjustments. shown in are and impairment table. unemployment QX see next forecasts. we The the you modeled EMEA's used show macroeconomic GBP the the slide, the On can variables post the improvements for in upper baseline the model And

downside of However, the the the improvements outputs. these modeled EMEA's for in used terms broadly scenarios offset

to addition, of In This don't at the are the we we we in us sight support risks thus around -pandemic. is ratios Uncertainty of Phase want continuing leave make table. quarter, Results lose materially schemes wind-down higher of that sure PMA with pre than the billion X X. to unsecured economic significant sharing is X maintaining as the that coverage

in see you As coverage included the appendix. can the on slides, we've

these With or coming outlook. in balances the historical pre quarters. coverage remain macroeconomic unsecured Expect of levels to charge -pandemic quarterly and below levels below impairment improved the

of The strong customer support s the non-recurrence X% decreased UK last actions. with Cost continuing in UK. year's X% posted quarter. mortgages, income of XX% generating Barclays to year-on-year, Joel increased and this Turning performance

in net for basis in do the the take XXX attractive, earlier Mortgage down the feed X.X pricing next margin X.X the expect is QX. were we new on were expect booked on XX% income for into credit was year. QX. mortgages grew at payment rates, Margins on and comp of about drive of the high very that billion the again with balances reported QX showed competitive but net balances to a quarter we card NIM the churn XXX The increase quarter QX As mortgages time still spend at level for we billion the points, down and year-on-year negative are reflects the side, to growth. to flat recovery interest-earning balances balances interest turn

XXX XXXs mortgage the outlook This now full-year range NIM XX.X% in the at by was we the low-to-mid previously to low as the result indicated. and margins. dollar on further interest-earning despite an to increased investment of Our reduced the growth compliant XXX quarter a X.X around the of of quarter to costs, level deposit and which of almost BI million, QX continued efficiency There costs spend. of than for Barclays savings, the XXX impairment in X% margin of the the for the lower income card RoTE the from operational billion charge, secured with charge now reflecting is more balances and top half implies end the for mix year's offset Customer levels in delinquency was international. year-on-year X decrease billion increased depressed further still XXX, reflected exposures. X% mortgages the and U.S. moderation headwind. effects last The of Turning

were charge This [Indiscernible]. up. markets billion. costs income slightly best But FICC was XX.X%. was in equities XXX XXX The at XX% next year. year CIB It million balances quarter with QX of XXX the the and X% level on with in continues release to detail strong up performances delivering at a release slides. in to in million impairment a quarter. QX, or the income, positive last increased million, against last for While during decreased of to RoTE Global overall X% net momentum year. X.X Impairment XX.X% last net record comparator in of on into X% reported up million prime in X% financing, of a equity reach on the going. Cost RoTE XX% by compared X decreased a sterling resulting going generated further the dollars. a the We're strong including XX businesses in growth derivatives more its

equity higher record other at Investment XXX is franchise reached high of a up remains level all contributed robust was performance. continued activity protection. momentum in million, banking continue year-on-year. our volatility. improvement deposit have the pipeline capital QX. our high record we on XXX on with and Transaction fee despite the activity. were and levels and over up our Corporate income share was fees, However, balances XXX client XX% level XX% the advisory overall to X% year-on-year, strongly QX recent reflecting hand, the the million, We at Sponsor healthy average quarters. lower cost be income an we swap diversification, of achieved million, referenced capital markets and proving was flow, increased lower no market debt markets to margins of pleased the Despite credit the with increased the Bank lending deal

of was year. in billion, variable before, accrual were compensation improved a skewed this ratio up towards costs in XX%. mentioned I QX increase reflecting X.X returns, resulting As the Overall X.X%, cost-to-income

in from Turning the billion, to is a now average reflected X% funds weaker higher Consumer costs decrease to costs, dollar, Payments. and U.S. partially income acquisition costs. Income CCP The in by private Cards customer costs decreased X% X.X payments in reflecting reduction growth U.S. the and in bank. lower offset year-on-year, unified in income

we have payment mentioned rates. I As like earlier, peers, experienced our high

were organics $X.X balances on around includes and $X.X $XX.X quarter-end However, billion. rough at acquisition billion. balance If RoTE from QX -- growth growth was the organic billion

customer developments first income has card acquisition contributed year-on-year, of the partner bank income XXX unified increased was as translation prospects in U.S. the pleased months, the was have the card over effects with Unified recovery for the our XX.X%. remind J-curve payments. trend QX initial XX% balances in customer marketing that business partnership The we in are was Investment on increased costs. client and encouraging. X million reflected [Indiscernible] saw of spending ambitions the acquisition and Private to profits is we invest RoTE as means you and of want year-on-year, an across balances payments so-called cards in charge growth income The and the the [Indiscernible] increase recovery. utilization. CCP in X% a into high-end of was balances. I in grew. recent costs. portfolios, pursue our recovery It affected we to also as increased accounts be increased will the and spend income XX% and We're by in payments new Another positive up that the this the

above losses some some O costs positive reflecting income QX, The Turning Head software million now interest was on rate volatility. mentioned a accounting fund. while XXX at Costs hedge million run negative rate Loss I to the line a million. of the related of million by office. driven XX to income with for business tax was XXX growth discontinued was XXX assets, gain another fair included net the value other before quarter bit

by contribution target approximately of quarter XXX XX%. a on of elements basis basis points to future the Moving further basis to August, FX CETX Profits next before ratio in buyback reflecting accrual XX range effect the the in to of QX capital, headwinds, moves. some reduced points. to the slightly well above points. of The capital basis eight We to RWAs our tax, generated million, amounted ratio up had the up dividend Offsetting accretion. XX.X%, in XX quarter pension approximately points launched the some on XX% were increased from progression slide. in quarter XX an and the the showed of this,

start As we basis our by to range on around well reduce points. will XX of expect XX%, and specific the reduce headwinds would end ratio we've QX, which ratios the current slide X XX to XXXX. the this above the indicated of This at year at we target shown

investment with be to net distributions comfortably support range. we in Going leave now target that capital growth, and are forward, a CETX will confident with balance capital over attractive to the generation headwinds and shareholders profitability, between remaining time us

ratios For were average sport leverage and around X%.

the reflecting continued deposits. highly funding, well-funded and the and of recap. our deposit loan Finally, a a XXX%, liquidity for liquidity growth remain of ratio the coverage XX%, Such about liquid a slide ratio and to in

and the statutory generated We quarter, year-to-date. an XX.X% the for RoTE XX.X% have for

for target can the our the generally in above we expect is and the this to XX% sustainable focused we a clearly are the CIB income be QX of and delivering year in lead of We indicators weakest strong. on some full year, recovery Although RoTE, performance see quarter remains basis. for on consumer

be costs performance we but impairment billion focus for and a than a control expect levels XXXX, we XXXX pre year, XX critical for share. the dividend modest of Although expected are cost billion, to over in Despite year. quarters. have billion Reported this around excluding cost higher announced and remains costs, be X a quarter, release X.X to charge structural net costs, to be earlier coming the rate buybacks expect for year-to-date, in the and the -pandemic per the totaling up to the X.X and impairment run the X pounds actions of below half-year

of ratio capital comfortably the XX XX% remain quarter of XX%. above the at range to our target XX end of Our

take Although there person to capital to being XXXX shareholders usual, position attractive remain headwinds growth. chance around a also your to get make a so installed of for while you. Thank get you yourself limit we'll to are we X now to questions. that coming everyone. in capital And And some returns to confident that investing I'd ask as future per

Operator

question, Chandra-Rajan question Rohith telephone to first Bank of is wish from ask you please. If Your [Operator Instruction] a of America.

Rohith Chandra Rajan

XX, Hi, just couple, clarify just side morning. capital the particular you're what morning. slide. you One side on good right-hand Slide particularly finished good saying on to there, a is had almost had please. a the of -- I the -- right-hand the I where

net expect looks to be thing generative. over a commented show offset flow start headwinds, that organic by you cash beyond is generation like of but to XXXX. Despite So, capital the you

those you're there. first would so, it -- I numbers wondering was there, around and I is And cost particularly, you income could That was then and And any the if -- the on you other clarify question. was just just put headwinds. if the what CIB, saying

Thank we income that major last CIB? the performance the say think in Is up efficiency So, you pretty keeping peers line the fade that and it's peers. of the revenue you. a your revenue good quarters with get a few some mid-fifties obviously for environment maintain also can much in is for even cost with if level you

Tushar Morzaria

the X. Thanks, your a in Rohith. it will On this this Jes and capital word costs, one, into or and don't guess. next. to Why future question, first on add [Indiscernible] I be I want start year of terms may

do you may slides the capital your objective, there's got a out any for profitability headwinds, we've think it It's a And expect I've cautioned that to your isn't. generate I that from have. and expect subliminal more we we business have sustainable number most time-to-time, and the more gist message. trying clinical years. over headwinds there compensate than of what of get figure to we it's net be be but been level rulers we you what growth that. will and There you from But generative whether think out capital the over of to our it should various than to question certainly, is before years,

or CIB efficiency where today. think that In above double-digits. depending pay efficiency, most unit, important. income the efficiency The operating we fact XX%, is, to and have just while the us, variable for the that's down kind reasonably And points capital be revenues sort of are mean, you in you go CIB levels, it's important goes, we terms to not XX% above it think returns broadly cycle, about at levels on how I think more we to return a efficient about honest, going go. so and are a to But the the sort about to get have it, up keep metrics on of be where Leap of I way will the obviously, to be way it. and it that cycle. are through of we almost if a want

Jes Staley

target Wharf we the XX% is -- on Canary we of structural the that income building charge -- that took here away that got the second XX. quarter. you that typically, And just Across if take that main costs, in ratio

then, function XX I and B a will the think, -- then below CIB. get efficiencies UK be more how we of and in

Rohith Chandra Rajan

Thank you.

Tushar Morzaria

Rohith. questions the question, please we Can your operator. for have Thanks next

Operator

ahead. Alvaro from go Please The of Morgan Stanley. next is question Serrano

Alvaro Serrano

of me. questions from Couple morning. Good

But on the the you. you consensus. equities. from the the to at like. U.S. outlook, in the pictures does cost, your here. strong think same Can you seemed costs make roughly quarter? is XX second On And [Indiscernible] to call, be rate my in looking different, be the is question how in inflation particular talk for because able with up, in as last sort implications what you made to not to I on that -- the cost. and should versus have you you in and strong, performance is remember offset expect forward, you peers, for that it think well, very at inflation you mix the and to the in I've Very that pipeline in cost Equities probably seemed the the are up you would that were any Thank beat explains picking in if and going XXXX, particular revenues. But is [Indiscernible]. offset of think reflections, CIB alluded And structural think on is I've And the or previous I you've number. about moment. billion, look as to Tushar, which given any input in can the obviously sensitivity, outlook we cost XXXX the seen alluded could relevant cost. we to right as efficiencies you

Jes Staley

first Tushar the take Thanks one -- and then the second costs. will Alvaro, take and I'll question

two were of side, sort function one we lighter say U.S. it's things: than I'd of markets Asia. On market into -- the the little CIB bit a revenues, peers. or first, the the size

quite equities cash our U.S. you more Asia as been strategy over the was and has the robust. for Europe. And focusing years firms the on six last know, U.S.

only issue. that's one So

had you robust The one, IPO calendar. obviously very second a

-- being highest for number really look our And at or happy the in overall profitable IB their the fees numbers clearly helps was investment overall. at us revenue as think year-to-date the a the most we're I Goldman's U.S. the lead-left was on had. outdid fees then numbers, strong. we [Indiscernible]. business very in bank look sort basis, those. if ECM as advisory your you the primer DCM there banking results, with are when you position that ever But has market's the It of and peers And

pretty it's actually the good quarter for for So, story I think year-to-date. the a and

Tushar Morzaria

In Just a [Indiscernible] income revenue. round equity up, set ED revenues in the maybe being record to Fact, buckets a following equities. approaching some those but we'll time, that for fixed

So, pleased with. we're the in is our very business diversification markets something

Just to moving costs. on

I point inflation. very think out right to you're

a principally [Indiscernible] us, sort obviously of in something the that high a we're of of For mechanics. about so than to We labor India That's It's we've some basis. for other lot supply are to. a costs. us have for had year. actually to chain That's it's rather of country real on we operations our percentage with and inflation used complicated used inflation sort having deal

programs. So, the by increases year-per-year, meaningful efficiency own costs in labor we that do absorbing our that through

bit all more if puts to that course, that a other pressure. countries, around Of spreads

investing offset now, the terms to invest next year about sufficient But billion the billion planning rest a posted to programs that, as now, now, right. XX in of good see be but how for we efficiency and ensuring we'll feels XX keep to it's purposes right, of that business, we in the We for for feel continuing have business. a go think we about while than I the feels into do certainly time we more very you into in year. the will

Alvaro Serrano

much. very you Thank

Tushar Morzaria

questions take that we have. Let's

please, Next operator. question,

Operator

Next go please of question. Securities. Today Numis comes from ahead. Jonathan Jonathan, Pierce

Jes Staley

Jonathan. Hey,

Jonathan Pierce

Hello Dave. X questions.

the you third said first you end the was obviously quarter, in hedge. than second of The had capacity is huge more the hedge which the a in the the There build at on quarter.

to you this So, hedge? And could third quarter. I'm talk wondering, puts is there how hedge go more on in maybe on the was to

roll will over [Indiscernible] it is So now the month years. next off every X from

is hedge. the on question first So,

point specifically rate the The that a arise second talk of up end move to could UK of base a much XXX much. thanks us subsets just to wonder the Thanks very We though you International triangulated non-UK in short how parts maybe I just the rate. the if for XX-basis find question, you book, the relates could out hedge, XXX increase as result can the but the sensitivity. you pullout, pull the an of in updated would Barclays in UK. tell of structural

Tushar Morzaria

Thanks, take both to of Jonathan, I'm them. going

the we think hedge we the nominal hedge have capacity, amount like expressed In terms of terms running. in want be I of we're to that feel of to fully

done. guided you That's is increasing in You're would which sort an up track broadly right hedge like, we've continue got we we if influence and to deposits of everywhere where QX, anyway. to of that at nominal be. that what like Obviously, to

there's year, XX-month basis, the you should go unusual to rights into profile. of refinance they to number look XX of of It's full a in strip at it's been want that the swaps if you billion that Into that of expect kind into years. of In that role we we to for a we'll and whatever as same on will providing between next be terms ROE nothing of the used XX next somewhere for year.

think can As you of terms curve tell it's your that as much I you come of base more of point, in rate and role. just guess say the the this know, being effect But year, through steep probably X most beyond Which -- point rises hopefully in in that income of hedge we of then and -- rises, have X of and structural story, maturity that strength just comes years on sort and base a versus the front would just reference X. I rate question assumptions the think dependent the in it and X, net from, somewhat be we pay how X-to-X-year by grinding base as use the expressed was, will I swaps. as you of hedges of strip the the more Year Year the pass-through how helpful the the majority all interest a X Obviously, grinding of would you. of or us is, what rate of becomes hedge. have driven sensitivity of end it first effect

at a it. about of number how a think sense So, gives you we least

Jonathan Pierce

clarify. just but helpful, that's Okay, to

hedge. the XX So, mean, of like I looks it XXX probably the million is

revenue, deposit hundred low is of specifically, nearly UK base all So, let's two of rate. call terms it that in

Jes Staley

split It's I've bank large -- Yes, that's UK but obviously a business. -- corporate In that international sterling it business, International. think well UK almost as entirely bank mostly the that exposure, don't I sterling and UK our our sterling, right. XX-XX a as across corporate across for is is predominantly

Jonathan Pierce

Thanks. Brilliant.

Tushar Morzaria

question, Thanks, Jonathan. we please? next have Could the

Operator

On next Please of question comes from Jefferies. ahead. Joseph Dickerson go

Joseph Dickerson

in case What Hi, provisions. an thing good guess. to point-of-view from I observers for billion with my got are sitting least When being external I so morning, one management guys. question. you the is of that taking overlays conservative, at your X me you why you've Thanks and X at, XX% base the if loss on on X% levels as nearly rate about it an be would have would unsecured I of which look reserve call had XX% UK the jurisdiction. in thought cards, block each unemployment loan U.S. kind or

management 'XX, the For go of you not as we're XX% full-year etc., conservatism, scheme, why it number, back adjustments allowance. ECL furlough -- the like when fairly your if I'm but you seems still like the overall particularly hearing at a high about things on

So, generation I something buyback's there. parts, do lots and opportunities in look to what's at your are with hopefully then the fourth inorganic capital as XX.X%, just other you'd still still yes, are that CETX but ratio driving well? share quarter. Or moving there like you And at might of guess

Tushar Morzaria

calibration aware the don't about there because pounds Jes we ask wrote I'll of I first take returns. capital talk really Yes. concept support one the of these why pandemic got models you're Joe, a scenario government overlay. of and importantly, schemes. removal we support. really to these we to the management that model, no historical And pick more effect billion think or we can And so X The there's It's have when up still government as the Thanks, models, use. and for of could

So, in towards the getting towards ways, the some end that. of we're right, you're back --

the game we don't support bit in having have, are much, but [Indiscernible]. in the being UK we'll probably that said now, longer. most Now, people U.S. a on the still the actually go just is schemes And appreciate do first unwound as which

a the -- and Or unemployment the amount underestimated digest that what you may and schemes any either the models have that in see of credit I Care adjustment we'll effects on data provision low Security Act which tough present credit we'll as the stress payments we I got of destruct that. They're But like extended out things just is of at begin have and case, to turns we A Social like we might it a have smoother as alternatively, we And more. feel the environment though the full than You've kind a in unwind, posted delinquency hand seen. the [Indiscernible] much benefits we've one, in before hopefully won't need final s. which you. over is how us. when it's [Indiscernible] look as thought been, would few Jes to could've it will for word be

sort of the lows would corporate as watch you mean, closely that's think banking And names I well. nines. life U.S. of in credit that seen in risk if we list, I is our at be yielded monitoring sort the as I've multi-decade that look and which investment about

piece environment, good it's support like So, the you'd the into weekly. if that to the if Yes, going scheme. be credit a of removal environment

So, out. we'll that how plays see Jes?

Jes Staley

the we clearly buyback, to use as our excess to shareholders, us an that capital was On instrument goal. for which remains still return

cadence dividends there whether capital, it's buybacks, it. returning a think needs to certain I through be to or

year. have We this billion done X.X

buyback now. The in second that's XXX still of progress million,

of capital. we'll in our we something opportunity, We terms will are buying see back will future continue an stock -- in and inorganic. do investments make we that that we if the be clearly of to

single best card that our U.S. to in Barclays number credit think the the we transaction transaction. probably where be have example that XX consumers I from of the a increased which would million XX transition, million in GAAP our

the like will But we recognize stock We long in buyback our that, be trading. very will to make economics investments where hard we is also think that viable given pretty beat, run. the of are the

and closed we to strong very we quarter to as [Indiscernible] to capital shareholders. return a excess the XX.X% capital continue objective at an So,

Tushar Morzaria

we the next questions have Thanks operator? please, question, Could Joe. for your

Operator

Certainly, our next question comes from Omar Keenan of Credit Suisse. The line is open.

Omar Keenan

morning. a capital one have I you. please. Thank on on rate-sensitivity, follow-up question the and Good plan,

should are just at for freely like tell M&A portfolio, you. than is XXX shareholders, be year to and ignoring of exit of was I benefit Bank view about kind new floors? And fully second the And was are perhaps pretty Is change rate, upgraded how the of was interesting the something years. If or couple think the That X of there rate the us rate million take XXX, what on I your forward the of capital that GAAP sensitivity can just be a the that that or got guess England I are you point. 's output to on use inflation is about of sort available? point a guess, my for super then to 'XX. something the Rohith landscape there, competitive number the right, be us imply long sensitivity, rate from from much a before number And, broadly we NII to first perhaps give still Jan to On risk-weighted XX.X% the over out we of that million wondering looks the to you going earnings to and to the closer an XX. just that assets look and the all just if X% would if of about Basel, like base talking could point And a of Thank related on banks rather that rate then least level we a on the hikes of again. maintained the first load sensitivity, opportunities as wanted that XXX at year? when completion from follow-up available there of question might to that things

Tushar Morzaria

just and an Omar. think about that. organic we how I'll Thanks opportunity

sensitivity, of that too assuming running up of each think not other the it points as in grinding year. here. effect we're we today. see -- shifted rates rate instantaneously fixed calendar words, curve clever deposit and by own went where It's own what see that And taking year up trying of high as parallel be basis re-priced, based grinding would yield into rates the on you the On in this happen immediately first our to that the receipts. It's it, on would and our then swaps in would strip assumptions our cost XX sense

change as, maybe about will that terms decrease? to sensitivity of looking really the rate, assumptions, they as rates your quite a increase. hypothetical. you gets what base into first I in pass-through So, question it continue think perhaps That will

such -- low a rate been find generally of it. a speaking, But the to you level. a a long sort that's and that it's since of we've backdrop so, got think we've sustained from sort rise I time -- the low might speculate. lot of had and of really you liquidity, I'm

might environment bit higher of as you sort gets and You right through little find pass the a it more higher.

sort stress The we I would of on. different liabilities of other though, thing lots have is

liabilities. have. We corporate Obviously

day account; deposits. have every have current see accounts. fixed our savings we We'll We term

does We make one see have savings not it outside. fits which size quite the it's all bonds. a from tricky to

just we given that and sense blended you, it. the we've in, -- all see how there's really is So, of

the Jes give over us by will we're In a About PRA [Indiscernible] there. before inorganic. see That just consultation terms of what the think we the due winter capital before, clarity talks to months. as and about some I may paper

on be us. whatever good thing going and what that understand we've I I into this implemented we'll think and of try that at when double X somewhere many cases, load, this inflation for Output that some of to three important about and get mean important. almost it's and, than which it will get I bulk to had go know fully adapting are it's and lead horizon consultation banks wouldn't think -- about is to we go where net inorganic. have speculate capital clarity on out I shareholders' able already, generative XX% be it to that between we what again, years feels But price that flows, track into your this that. we be further the wouldn't a about to we'll we Jes of capital may to speculate until record by back will a out get may And get out, That sense. guidance to a aim your stab of talk to makes like question paper Timing a I of want on But the hands. of I and regulators. that further from the is to is that large, me on the answer or the right, inferred that. gist

Jes Staley

Thanks.

that I model context stability strategy ago years to we've think striving a not set for years, to universal did is is have. Barclays it level we've Take six that banking I think, the the bank many got. for that of the been the we it be what -- of provide And really

rewards Now months is to in the history of And our the are Bank. strategy, and it are the I bank. X most reaping profitable you that stability the leads of now paramount the the -- think to we of

We that transactions real will engage in gains us. have structural for

a Amazon of to UK, of the the finance in that's with to you're time and that the partnership options Barclays a number behind in where I XXX Euros have now Amazon over if And case that. and they think Germany, it's every all goes Amazon we in and go purchase, the Germany to purchase a on checkout. someone getting make

we're an And offerings, important that particularly our of so where partnering to the banking with advance And then our Amazon. consumer business. tech ventures digitization have companies we there that's are less relationship extremely of with number a visible

XX% working that's or equity, pretty endorse through the the will strategy. partner want now returns that we on we when will we're that we can I like we of alignments But a with Amazon. are strategy tangible and a we delivering it's people to we're return with things cycle the have confident and GAAP So, and delivering like level better and maintain that think

Tushar Morzaria

questions, the Thanks Omar. for

Omar Keenan

you. Thank

Tushar Morzaria

next the have we question, Operator? please, Can

Operator

Guy of next BNP Exane Stebbings Our comes question from Paribas.

Your line is open. now

Tushar Morzaria

Guy. Hey,

Guy Stebbings

questions. Good morning. Thanks taking for

some just movements seeing I there ask The first quality. because ECL slight, you're consumer one was the terms in is of on in period. asset And

[Indiscernible] I presume So, the it million stage into much X. there second, the [Indiscernible], exposures ECL XXX which like stage in that full look doesn't increases pharmacies, with in in was there's a drove X international but retail flow

a pickup a raise reassuring. quite and seen haven't in achievable sounds You your other

second increase X in in a So in That be perhaps bit which NIM, pipeline, something just of assumption on UK case we're back so what to question, more could the the seems just which U.S. the color backend to now stage UK. mortgage issue perhaps. as give the you retail very got and up I I to then visibility etc. with drove to we October presume spreads, the is a model still the do guess in the good

or as the XXX being circuit the points basis full-year quite pretty big exit about this we think are we XXX on rate. year, point X of can where has swinging the X So a the much implied number [Indiscernible] just at spots, given on

be any useful. So, would color there

Tushar Morzaria

On to you on the AARP, impairment Guy. to for one the asset Thanks took is, P&L. U.S., when not be quality, day may in the through on bring we folks provision book the obvious have actually the one back of things that

flight in Charging that, effect CTP. For quarter's as the non-recurring like, this a for you if

of stuff PSXXX one it it I on or of XX in AARP that think for that CCP was day was So, between coming million, on XX nonrecurring. from

probably the quarter. on You'd that again happen GAAP when second actually in for same the see we bring thing

it or whether that look leave you you think I'll you through to to that. So, want how about

the Things a XXX on and be of will before not changes and like may a mortgage [Indiscernible] for moment. wants on though precise UK blended which anything sort We not NIM, bit. before rate the think things give any course, interest too margin. credit hopefully, And of Depending moment. not year-end away X.X base that. I -- I give M&A. seeing the or speculate can signs business cited mentioned, it to around we to the and even that want quality obviously [Indiscernible] that saw you months move as mean, guy kind go sort really to little margins, So helpful. mean, number. net looking that's somewhere full-year as of come the is around of from I'm or still I the I that, benign. We've any precise very may at

Guy Stebbings

a new from And assume year? decidedly clarify, benefit, I doesn't base any just All that hike receive right. to rate

Tushar Morzaria

find got no. ball crystal and we no, not don't we believe a No, that, on

Guy Stebbings

you. Thank

Tushar Morzaria

Thanks Guy.

question, operator. You please, next can update,

Operator

from next Cant question Our Chris of comes Autonomous.

now is line open. proceed with Your Please your question.

Chris Cant

you your under sensitivity, rate morning. Good just currency that my your questions. clarify the FX at split, report bit from look could If I please Thank the Sterling. XX% If split. on a coming for annual I shows comments with taking

what as over months balance My was the So, further the the sheet slides the in gave look another are million, to If included X slides. sensitivity do now the increased majority period terms And in has against about sheet you understanding see I entry of a the at equivalent please? assumed period disclosures -- of the XXX it sensitivity What you XX%, CIB, XQ X XX% look vast profit? what the is had the very compare and in balance the the point such assuming by you the at as months of And Sterling? on then, deposit you in now a in strong what I since so change previous nine obviously detail, the does whole that XXXX. if if in I the months. I changed

comp you costs the largely of round, charges scene around the will this year, us the know bottom those is - the does this If a like step very you've a ignoring a fallen flex months, XX% much X obvious the forward, just actually not were elevated Thank XXXX, up going should revenues to in to through and X%. period. reaction revenue revenues. decline that because at had fallen dramatically provision looking it remuneration tough this X has to pre I It the a or not we're in took and Mitch, So you to you. revenue up expect for through looks levy. costs numbers lower, referenced of in on but revenue very fine it's COVID, high line, XQ line And division, bottom looking up. we the months

Tushar Morzaria

banking for the comments Jes some may add Thanks, Chris. to I'll investment more them. compensation. for on want suffice

guess had previous this pass-through sensitivity, annual disclosure what XX% flight. we is to Whereas think of to compare a sort difference of basis just took in interest rate may our In prep at everywhere. you're the The on But you're report rates I a of hypothetical prep. least we I We'll terms all if -- sensitivities, trying is. an there a if like it's indicative thinking see time We've of an what really tried happens in what conventional to real. the and but of becomes -- around than likelihood that's hypothetical more of ever changes more rather get XX%. that happen just

we've think through basis I a to prep, various I'll can someone to they it in want take see you IR parts. I'll if the to through give to sounds may of do, you after like want got this suggest the you which call you get and go moving

component income would bonus for really We accounting accrued CIB In a in it's little The we us where us. at try you've again, you'd the to disclosures, flex the at way and year get say obviously and just unfortunately previous terms complicated compensation for with story actual relative compensation returns accounting. way is, like and that through. that you as works down. compared the I this given to deferrals seen do the an a of thing, the returns to I will the the and do, probably We meaningful XXXX, look performance everything bonus -- improvements, a just of income size the look not in aren't would pool, if increase expect it as same guess holistically. the bit pool

get strong Chris, performance again next at slight timing imagine as awards and [Indiscernible] it you are parts good accounted statues bigger some take in for. but work probably if us through between, for you're lot again, way is till that place. somebody the I is I in of course, feel we'll they of maybe as but that the it And underwrite moving the pretty maybe see for this was Of year, mismatches not year through, a as do economic you already.

Jes Staley

what we glean to, what do market. is and industry the we of can And are accruing about -- with We obviously, stay the the how tracking compensation. information constantly competitive want direction

pay. of I As a robust this compensation competitive the And Tushar said, will level, that we pretty we feel variable remain very comfortable banker U.S. firms year. terms with are accruing at in

Chris Cant

in an then largely the the terms I In deferred I by issue years the comparison of of changes back a historically. that compensation, was XXXX you made and few for XXXX accruals. on about thought you that it through know terms went

So are paying. what a basically, it's function just your competitors of

not flex if expect then down come does at level down So, an elsewhere, see for we would revenues to industry Barclays. the and same comp thing

So, the cost line it. see elsewhere, is of really we think be what a how function or should to about we going

Tushar Morzaria

up you've and balance Because compensation Look, the today of XXXX, an actually bank. between employee. won't investment we right the us an disappoint, but later the we're hopefully on move over was seen the on in down based and down but trying performance for actually the up get reflects shareholders year, to back years, which compensation

things performance, I the of own your All point, obviously position, particularly but things Chris. matter, So, on all of your labor areas matter, guess relative sort investment.

Chris Cant

Okay. Thanks.

Tushar Morzaria

please, the Thanks Can for question, operator? next your have question. we

Operator

question from of next comes Bank. Deutsche Robert Our Noble course, Of

question. begin may with You your

Robert Noble

it's that on moment can to increase from or require benefit basis you the which business lines you disclosure. or following I Morning you at I see If the same amount that then it U.S. how implied the on that balance expect do from the next XX through [Indiscernible] years, by way sensitivity would path the the should net much we'll drag the Thanks. sheet expect levels I'm that customers what additional the rate at over does normally you the acquisition incentive points COO for some What look secondly, either I And actually market at stay spend or interest to less? close comes putting lose? see interest the you're in cause. three is? now, rates The expectations, the income thanks ask rate current market it top and impression entire of on at interest moment. will

Tushar Morzaria

we well line, will acquisition the of Hopefully, as on thing [Indiscernible] business. is accounts guess be for believe adding We well. growth future contrary be this as a I new portfolios, the costs we opening be terms coast In want as continuously. income to the in to

costs. income to last come and thing. it on. guide There's later and think course, I ebbs very three-stage little away. start you're year, then through activity got What to we about So, to I start, the of wouldn't this is, acquisition you thing a kick kick from And really think a for remember, a is of seeing sort us,

First of to your attractive need all, be to people caught.

with continuum. encouraged And programs and new openings so that account that various your and account are rewards A comes openings.

got Secondly, the it, have be wallet. to card and that top be utilize of once you incentive to call to

better mostly account -pandemic some in pre not for So but levels, new are our spend levels partners that behalf, requires marketing continue and course existing if customers to doubles, openings, accounts, and actually but and your already that's these important of which that's spend cases. branding, than not activity you see

to that revolving expect You balances. into would translate

l way cost out the Think growth is like, think, I sector. you in a we won't quote So, number it, recurring, these of think while as you. perpetual, about to a if

I've who the doing I ago, negative and be about don't six we're too been future In We've single rates we're shapes try and on be, point that higher. want a to as for and terms have will that. all higher run get day. I XX-basis shift rates at given would remember, talking curve it different talking IR them go clever we of block every of mean knows months I sensitivity, and we as people higher and now the will parallel everything. to points. about sorts yield that what that scenarios

of I high we'll raising think sort with that So, multiple refrain effect smarts, sensitivity, the How you into mechanical think thing for swaps one sort are try rates, running It's linear fixed of of linear. is. long it and I receipts. from it's grinding for just completely

getting base haven't really the historically right proportionately up because In terms such generally rate precise the experienced rates more up level. increase on change this But of as are low will as a get this taught you base end we go be the speaking, you from effects, levels. And into probably spectrum. passing assumptions through higher pass-through you probably to

system higher liquidity rates. the in at much the phone go that's we because driven changing Somewhat for guess. banking moment. And interest it I

from the to pretty be through that become Guy, call more, previous questions, but questions, hypothetical that. hope I'm may at that's that You I'll [Indiscernible] moment, on talk precise your answers On sorry, Rob. Rob. but

Robert Noble

great. you very that's much. Yeah, Thank

Tushar Morzaria

question Operator? Can we please, have next Thanks.

Operator

you. Thank

comes question. from of Broadband. Our proceed your next question with Fahed Kunwar Please

Fahed Kunwar

think I but a see It feels how on, growth out coming scale X.X I think on Morning, CCMP the your how I about does had Thanks XQ J-curve taking question. that J-curve strong. CCMP. we consensus? points of implied the run revenues in now, the question, right you it's to Hi. If Could at rate guys. and GAAP the in very get billion. I XX% just actually, of you. progressing I sense for 'XX, appreciate look when balance one around the Thank XXXX?

Tushar Morzaria

of calibrate any the I I'll historical the Yeah. We do precise Obviously, next a it's phase, number see higher just be GAAP the of in second up coming giving next year, because be the in year. increase portfolio if that be have annualize, and sooner precise to you've we're would we currently But got, balances. we to expect we increase wouldn't when year. will income you've very revolving don't got revolving expect to increase refrain course, the hard balances levels so on. given from to quarter. Rob. Thanks

bounce segment and So, payment we We've in -- I we'll refrain bounce are Account conditions next will we continue very already strong we Credit expect. this that but strong, they're go from running precise really Activity that's [Indiscernible] Hopefully, year. into recovery to really optimistic running levels, that as guidance, benign. strong. a are giving year year. into remain included seen next openings

other be have about our probably but And expected the ways, balance in increase, the we in seem perhaps we once that we a some caution. optimistic to revolving in going. how in okay. of are So, may there, and will for where and out been we probably out some -- bit little optimism it's playing -- more more business cautious is Those that's pace right

optimistic into are We next year.

Jes Staley

As indicators to and consumer pre should level, account terms that are balances openings back we that well. payments. of as Tushar forecast are well and in said, recovering the spend so leading And -pandemic

Fahed Kunwar

helpful. Very Thank you. Thank you, Jes.

Tushar Morzaria

operator? next the have question, we please, Can

Operator

comes question from HSBC. next Kindly Down Robin question. Our your begin of with

Robin Down

Good for morning. questions. the taking Thanks

of reinterpreting Just If a could I the start of kind sensitivity. some quick earlier of Really, couple questions. ones. the with

volume were hopefully first think roughly suggests is previously element some hedge since off you hedge structural activity. which really non-structural I XX% although about And You've coming element of gave kind talking the you kind of doubled. pass-through changed, hasn't from over basis growth, going XXX It like just of a you've these rate quite roughly doesn't sensitivities to increase at quite million square X the million. you're not pass up still XX XXX points feels without -through with it and numbers.

is One X your likely competitors, consuming of though, pass-through.

part. a full So, wanted I just

-- bit still yes, commercial also a here. means we'll deposits being can whether a You and look which or say onto retail you're they're pass-through to customers conservative

you the second the put you Is everything different why handed above that as question, capital, of the part should why particular early retain to capital realistically year, you extra through come can can Thanks. any sort that slightly comfortably feel expect above XX% the to we and target back on early reason a there Is next there XX% that. be particular you running the the be to On need run way set? Or range and [Indiscernible] we reason, any shareholders come of range above to fairly to on.

Tushar Morzaria

capital. on what pricing, On or to or and Robin. wouldn't want some won't posture in other speculate income both don't them sensitivity, words I on which that Thanks competitors Jes of you, interest assumptions start add appropriate. on a be may I Why have

expecting are most move us, I not used guess, like moment. number said the at on I right. case. I before. if of the than we XX% the More a Who guess for to knows hypothetical as a arbitrary use [Indiscernible], people that's think I to sort likely as

assumptions indicatively many at say -- we think of is, We that, tried others be happens. let you our will fairly conservative. process more there's think products be -- could It of And savings really, out of I so, will not that give than it. to so, we've may but in Robin, bit trying reality. accounts different what been we'll accounts, our to don't not probably course, judge be a fixed, number there. sense to in health, that. don't other Then so you're name more the a to helpful really to least there terms it's what corporate to of I when see different different banking I'm guess. see just different and we'd get current sensible because leave it single can And to deposits, the private consumer I'll you we But thought happen. much sure what there's it's I different

shareholders' In what institutions, to terms in look, most of capital be capital think is back of you'd expect to reliable, us we from, how get I think expect consistent, returns, in hands. terms the predictable, XX% that -- I you'd

the at off we at us that, appropriate around return is So, XX% them Jes, the results. that the our will you that It's than quarter our rather stated for The to expect anything be another more consistent for But of but information something like sort discussed more be there did full-year an at called buyback capital to probably back basically in the want interim, this. would or one we've like for more out. things we a target We results shareholders, to is reliable, target. some at to the of levels. the else They're XX% add? interim. a alongside There headwinds dividend did year full [Indiscernible] full-year announcing

Jes Staley

interims, dividends a cycle we a so for want the behind plan our us predictable made in the have At put was the see of to dividends, the, like over our statement XXXX. Increase we clearly we'd to progressive over and

a So, that. you be cadence I as to said, excess And additional there returning will expect should capital.

our come of XX% flexibility we as XX%. So, more normalized with in And continue of pandemic, we a environment, to our just increases. target out this

Tushar Morzaria

the Operator? Thanks question, for next Can please, we have your questions, Robin.

Operator

The from Sachs. next Leitgeb Goldman Martin question comes of Certainly.

is Your with line question. open. Please, your proceed

Martin Leitgeb

morning. Good Yes.

just you UK to of the rate in or falls you be related the from the on here, Do in from given. see for a Just I access in was could some the this or expect UK specifically, just valuation pass-through? seeing increasingly given to in could increase headwinds think points XX, mortgage limited of just wondering, have Would increase rates to rates. Thank on that pile industry be [Indiscernible] comment you a ought way could just interest driving, Can big was as to revenue of deposits the if light prospect to this the and wondering in we're swap X-year for a you the you structures piece see U.S. COO basis potentially question banks around pass terms passed, of you. rate. do competition for and outlook QX impact? an the some of outlook And in XX just

Jes Staley

and levels. as markets Martin. high higher implied tends for to think encourage a are you pricing, offer just increase volumes. be I Obviously, In rates volatility them? and are take a still to see environment, might rate function asset positive Thanks, I economy, wholesale and might speaking, Really asset rates. both FICC, spreads, generally higher functioning in there's a higher as consumer still move well supported I prices regards financial a They think, as wider wider orderly of Why long business. -- tend in that bid see financing markets to around, spreads. better tends to don't

So good. that tends to

FICC that lot complex. talked the a Financing, business, in price The move low. yes, is and generally about We've talked all-time of spread, speaking, interest I for true rate asset sort thin definitely picker, generally think positive, a much. including and So almost one markets equities. about an we've around drift higher, not financing

positive business. be So, very will if wait they that our for

and mortgage swap wholesale, it the summed between, rates liquidity. sort sort but market, up you tension think of higher of On a lot I UK of there's That you got have well. of sort

I below deposit even is to loan Our ratio XX. think

long we liquid, Now at level, group so the are.

So, I think you'll see tension. that

customer participants think in increase seeing probably beginning I rates. to you're general

last seen precise support. lenders sense compression that aware. the further that's to the That of very as it's that, the making they're might through because as And be you're to liquidity will week. we of the looking makes you've that think few too able is in toll be do come But sure provide you lot a a sort think I I a of pricing closely, pointed out, way, sort to swap of some a just most X lenders system out, as rates. rate. in there from go meet still hurdle That banking X-year

Tushar Morzaria

next the your for we please, Thanks Martin, have operator? questions, question, could

Operator

question from proceed. Benjamin comes Our Please next RBC. Toms of

Benjamin Toms

Can Good you later Thank bit my to please. morning. just taking questions little Thank you. for space. your the a wonderfully, you just talk about now, ambitions enter buy pay

Tushar Morzaria

Go ahead.

Jes Staley

We are care think think, Offering ways the actually non-regulated do the we're today. think which ultimately very long of the the UK, U.S. a later is space, to favor. we I do in we're purchases, now will accrue later think get going finance actively as in may in way. in unregulated the and into not regulated bank very get What buy our But the in. business much a going space, the of But to bank, very to buy an consumers activity different to in But pay we is involved be Germany. important efforts it unregulated. actively pay the do I not we I customer now

Benjamin Toms

Thank you.

Tushar Morzaria

Benjamin. Thanks for next Operator? question the we Can please, question, your have

Operator

Our question from your Adam next question, comes of with Please Adam. begin Mediobanca. Terelak

Adam Terelak

announcing to buyback. of the want half-year structure ask the Clearly, the a of be But that for Morning. the and not there periods year the where in that about able minute, to means you're I full-year. just are the questions. Thanks at market. you're

well current the done you XQ report be before So, million XXX results. will

things it on Thank NII kind is capital detail And a size and bank us next looking you decline the transfers give a model. well, more some the strength, assets buyback on discussion will is few flagging return to [Indiscernible] the how of a to right. develop you. headwinds more, more that you that? that around it than Given you're the difficult sense quarters the of [Indiscernible] bit into in, quarter. be on but that might to some makes Are as given numbers looking over just not And on and the UK then to Can some -- and basis? regular much the announcing be to of ups headwind buyback how for in I business? secondly, top acquisition a how consumer from Just accrual interest-earning for wanted bit

Jes Staley

Yes. Thanks, Adam.

announced buybacks. that share Look, institution of timing refresh, share an the we long one since announced done full-year at the share results. We the another one at a been then buyback, time interim. it’s the as On well Barclays

managing probably rates have from I think that of expect interest trying what from the -- or things more think rate And that's and that's comes consistent, whether prices cadence. to buyback expect I on and anything. So, or and share what indeed or in for you. you don't and in ball that, share what to you kind crystal cadence clever, banks, sensitivity us, we and want It's interest or have and be our should a to out be too try you. trying us have just regular that We should than the time or predictable,

should us. expect So that's and about, we're what you that's from what

previous with disclosure, -- on you done haven't I interest I I asked the question -- In terms would for But to net yeah, call out these size we think that acquisition regards like won't are of so costs which say well, this. income, put can a it in a

Tushar Morzaria

these are continuum.

that we expect. think these costs about would as So,

be increase, generates. you, you of time. be to sort and foreseeable it's I see guys, net Assuming we're which you'll for what mean, revolving to so some -- that incurring growing expected not we And In ways, as interest think our that businesses, I it's some as income balances see the future, I for soon able do. complicated, mean,

you terms net what less give cost. will charged of and what we funding probably balances You know of NRI, you, on in know billion calls a these

not [Indiscernible] get a back pretty it's go sort can permanent and away, but in probably one-off for of You of sense in good think [Indiscernible]. these costs, But yourself.

Jes Staley

[Indiscernible]. May just add be the

spent completed, and we'll now decade meaningful of how which we're excess we've the XXXX. last we bank's in first So, XXXX the this target. the and the the capital base really go return And rebuilding shareholders, see to our as began into to we again, over was program amounts evolve year that we year sort capital

Tushar Morzaria

Thanks for your questions, Adam.

Adam Terelak

very Thank Great. you much.

Tushar Morzaria

one for time Could got we one more. question, please, think have I operator? more we

Operator

Andrew Coombs Final question Citi. please this morning comes begin. from Andrew, of

Andrew Coombs

Thanks for taking question. my

Let's big outlook. you the GX, picture one for markets a very start finish the mean, capital with on I year. One create which strong is

substantial at since look as profile it going looks [Indiscernible] you like with we're whole, industry the a them for XXXX. best in the a Obviously, revenue revenue. If pace have industry XXXX decline quite

few what can So, to? you the in sustainable improvement you you is here. and talked that revenue how about love Barclays, a Market the then to fixed profile our gains alpha? much do beta are where mean own income, is think at volatility, think thoughts you look from indication specific revenue on And higher you profile, in hold that of rates, share see when might but your much on capital would do versus you how markets

Jes Staley

Yeah, Thanks, know. Andrew. I

attractive as equity And there capital that in both to structured will And said, balance level fundamental to finance and systems, a markets, the of place the derivative you well degree think the people the are is continue. markets sheets. have economic I growth markets, than bank that see manage such their the that the the more overall in think debt As markets which I allow tailwind as the capital risk. I financial regulators a to

You need to look capital markets. the at volumes in

look the You at said, need spreads markets. [Indiscernible] to to then need we in you at look capital ad As market And share.

the AAA our the -- you morning, us running XXXX and Bank a like sort risk-weighted risk-weighted was that the on of that obviously, the get of we back back have then. lights your in turn XXXX, or back And capital being the level are security when that XXXX, position if balance of is asset in the And we in Investment about going put on we assets. had we we sheet, X. use, of led twice XXXX, One to exercises optimistic

return and XXXX, at the one going a Investment reverse. I that. decade. risk to way extent capital double to is and in level the we've underlying certain the of And last current the that the in markets of Barclays XX% than more And think profitability XXXX, took look [Indiscernible] capital the calibrates yields in you to and of seen applied Bank, If our growth is that the capital don't that

Alpha. versus Beta of terms In

share part gained both of have We That's well primary the market in in business as markets as the side. the alpha.

part our of important an improved that's think I profitability.

business. as is to obviously part has a has recurring another investment think with important accrued theme you I that point maybe revenue from bank. very banks brokerage There's of our of capacity then the that prime And beta, an component leave think I prime brokerage. and European the very in I'll a withdrawn

the in and business in XXth from the prime been last years the that have awarded. being now globally. largest gone broker Xth have We that's system, we're we X

I think, we of our think side and if Prime in Bank, underpins, you. that team Brokerage I the helps a terrific Beta that have Investment

Tushar Morzaria

Thanks very much, Andy.

I think for that's it question.

thanks morning. and days. this on a sure to So, next few speak care the of in But joining take road chance you to we'll otherwise for get us all I'm you next time. see some the --

Barclays (BCS) 21 Oct 212021 Q3 Earnings call transcript