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- Barclays press release (NYSE:BCS) reported a fourth-quarter net loss of £111m and updates its outlook for fiscal year 24.
- Q4 non-GAAP EPS of 4.20p.
- Group revenue of £5.6bn (-3.4% y/y).
- CET1 ratio of 13.8% and tangible net asset value (TNAV) per share of 331p.
- Group RoTE was 5.1% (Q422: 8.9%) with profit before tax of £1.0bn (Q422: £1.3bn).
- Revised financial objectives and financial prospects of the Group: Returns: Target RoTE above 10% in 2024 and approximately 10.5% excluding inorganic activity, with a target above 12% in 2026.
- Capital Returns: Plan to return at least £10 billion of capital to shareholders between 2024 and 2026, through dividends and share buybacks, with a continued preference for buybacks. Plan to keep the total dividend stable at the 2023 level in absolute terms, with progressive growth in the dividend per share driven by the reduction in the number of shares following increased share buybacks. Dividends will continue to be paid semi-annually. This multi-year plan is subject to supervisory and Board approval, expected financial performance and our published CET1 ratio target range of 13-14%.
- Income: Barclays Group NII target excluding Barclays Investment Bank and headquarters of approximately £10.7 billion, including Barclays UK NII of approximately £6.1 billion, in 20241. Target: total group revenue of around £30 billion in 2026.
- Costs: Group cost-to-income ratio target of approximately 63% in 2024. Group total operating expense target of approximately £17.0 billion and a Group cost-to-income ratio of 50 in percentage terms in 2026 This includes approximately £1 billion of gross efficiency savings in 2024 and total gross efficiency savings of approximately £2 billion by 2026.
- Impairment: Continue to expect an LLR of 50-60 basis points over the cycle.
- Capital: Expected to continue operating within the CET1 ratio target range of 13-14%.