Barclays Plc Ads (NYSE: BCS) reported Q2 EPS of GBP8.30p, GBP0.27 worse than the analyst estimate of GBP0.35. Revenue for the quarter came in at GBP6.32 billion versus the consensus estimate of GBP8.1 billion.

OUTLOOK

2024
• Returns: targeting RoTE of greater than 10% and c.10.5% excluding inorganic activity1
• Income: targeting Barclays Group NII excluding IB and Head Office of c.£11.0bn (up from previous target of c.£10.7bn),
of which Barclays UK NII of c.£6.3bn (up from previous target of c.£6.1bn)2
• Costs: targeting Group cost: income ratio of c.63%, which includes c.£1bn of gross efficiency savings in 2024
• Impairment: expect an LLR of 50-60bps through the cycle
• Capital: expect to operate within the CET1 ratio target range of 13-14%
– c.£16bn of RWAs from regulatory change now expected during Q125 due to USCB moving to Internal Ratings-Based
(IRB) models. Capital returns intention remains unchanged
2026
• Returns: targeting a greater than 12% RoTE
• Capital returns: plan to return at least £10bn of capital to shareholders between 2024 and 2026, through dividends and
share buybacks, with a continued preference for buybacks. Plan to keep total dividend stable at 2023 level in absolute
terms, with progressive dividend per share growth driven through share count reduction as a result of increased share
buybacks. Dividends will continue to be paid semi-annually. This multi-year plan is subject to supervisory and Board
approval, anticipated financial performance and our published CET1 ratio target range of 13-14%
• Income: targeting Group total income of c.£30bn
• Costs: targeting total Group operating expenses of c.£17bn and a Group cost: income ratio of high 50s in percentage
terms. This includes total gross efficiency savings of c.£2bn by 2026
• Impairment: expect an LLR of 50-60bps through the cycle
• Capital: expect to operate within the CET1 ratio target range of 13-14%
– Targeting IB RWAs of c.50% of Group RWAs in 2026
– Impact of regulatory change on RWAs in line with prior guidance, expected to be at lower end of 5–10% of Group
RWAs. This includes c.£16bn of RWAs expected during Q125 due to USCB moving to IRB models

For earnings history and earnings-related data on Barclays Plc Ads (BCS) click here.