Barclays Credit Presentation Deck
STRATEGY, TARGETS
& GUIDANCE
BUK: Mortgage
balances (£bn)
●
PERFORMANCE
BUK: UK cards
End Net
Receivables
(£bn)
CC&P: US cards
End Net
Receivables
($bn)
143.3
148.3
Dec-19 Dec-20
Mortgage growth continues, well positioned for rising rates and
optimistic about recovery in unsecured lending
15.9
Mortgages
ASSET QUALITY
27.1
Jun-21 Sep-21
Strong mortgage flow from new applications, with net balances up £0.7bn
QoQ and £9.9bn¹ YoY in Q421
Q421 margins have reduced from the levels seen in Q321 YTD
Credit cards
CAPITAL
& LEVERAGE
155.2
21.0
11.2
9.6
9.6
Dec-19 Dec-20 Jun-21 Sep-21
157.4
18 | Barclays Q4 2021 Results | 23 February 2022
158.1
21.1
Dec-21
9.5
Dec-21
20.1
Dec-20 Jun-21 Sep-21 Dec-21
Dec-19
US cards growth in 2021 includes $0.6bn AARP portfolio acquisition and
organic balance build
22.2
Recovery in spending expected to drive growth in unsecured lending
balances
MREL, FUNDING
& LIQUIDITY
CREDIT RATINGS
GBP 5 Year
swap rate² (%)
1.5
Expect income headwinds from higher acquisition costs as new accounts
and balances grow, particularly in the US
Numbers do not tie to chart due to rounding | 2 UK Pound Sterling SONIA OIS Zero 5 Year Point (Refinitiv: GBPOIS5YZ=R) |3 See slide 40 for more details |
Group NII interest rate sensitivity
1.0
0.5
0.0
hy
ESG
2016
Illustrative Group income
impact from a 25bps
upward parallel shift in
interest rate curves³ (£m)
2017 2018
Zero Yield Close
DIVISIONS
& LEGAL ENTITIES
Year 1
c.275
APPENDIX
2019 2020 2021 2022
5 Year Moving Average
Year 2
c.375
Year 3
c.525
Barclays is well positioned for a rising rate environment given significant
deposit balances
The scenario above assumes a 25bps parallel shift in interest rates, with
the additional benefit in years 2 and 3, primarily reflecting the structural
hedge being reinvested in higher yielding swaps
Around two thirds of the Group income benefit from the illustrative 25bps
upward parallel shift is in BUK, with the remaining in Bl
Given the move in the yield curve and increase in hedge notional, the
structural hedge contribution in FY22 is currently expected to be higher
than in FY21
BARCLAYSView entire presentation