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Barclays Reiterated 2024 Outlook: Targets Barclays Group NII Excluding Barclays Investment Bank And Head Office Of £10.7B, Expects RoTE Of Greater Than 10% In 2024 And 10.5% Excluding Inorganic Activity

Benzinga ·  Apr 25 16:22

Group Financial Targets and Outlook: 2024 • Returns: targeting RoTE of greater than 10% and c.10.5% excluding inorganic activity • Income: targeting Barclays Group NII excluding IB and Head Office of c.£10.7bn, of which Barclays UK NII of c.£6.1bn1 • 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% 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.£17.0bn 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 RWAs expected in H224 due to USCB moving to Internal Ratings-Based (IRB) models

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