Barclays Q1 2021 Fixed Income Investor Presentation
STRATEGY, TARGETS
& GUIDANCE
CAPITAL
MREL, FUNDING
PERFORMANCE
ASSET QUALITY
& LEVERAGE
& LIQUIDITY
DIVISIONS
CREDIT RATINGS
ESG
APPENDIX
& LEGAL ENTITIES
Unsecured lending remains subdued, while strong mortgage
performance and the steeper yield curve are helpful
Unsecured lending
BUK: Lower
UK cards End
Structural hedge
-34% YoY
1.5
14.9
12.9
12.1
11.2
9.9
5Y GBP sonia
swap rate (%)
1.0
Net Receivables
(£bn)
Q120
Q220 Q320
Q420
Q121
CC&P: Lower
-22% YoY
US cards End
Net Receivables
24.7
22.0
21.0
21.0
19.3
($bn)
Q120 Q220 Q320
Q420
Q121
Unsecured lending balance growth expected to lag the recovery in
spend volumes, with origination costs an income headwind as
balances grow
BUK: Cards balances also impacted by persistent debt regulation and
actions taken to limit risk
Mortgages
•
0.5
0.0
2016
2017
2018
2019
2020
2021
Gross structural hedge income across the group expected to be £300-
400m lower in FY21 relative to FY20 (£1.7bn), despite the recent
steepening of the yield curve
Incorporated in FY21 BUK NIM expectation of between 240-
250bps
Merchant acquiring
+5% YoY
-8% YoY
CC&P: Lower
78.3
66.4
BUK: Record
57.8
65.3
61.4
payments
25.6
39.4
high mortgage
145.0
145.1
146.4
148.3
151.9
28.1
29.9
32.2
processed
40.8
29.7
38.8
35.4
29.2
balances (£bn)
(£bn)¹
Q120
Q220
Q320
Q420
Q121
Q120 Q220 Q320 Q420 Q121
Strong mortgage volumes and margin, with £6.9bn YoY growth in
balances (£3.6bn in Q121) to £151.9bn
Headwinds to income in Barclays UK are expected to persist in 2021
CC&P income outlook remains uncertain, despite early signs of spend recovery in the US and UK
1 Based on the value of transactions. Includes turnover associated with Government savings products. In-store refers to all non-online transactions |
Merchant acquiring turnover expected to recover in line with spend
volumes, driving increased payments income
In-Store
Online
18 Barclays Q1 2021 Fixed Income Investor PresentationView entire presentation