Barclays raises NII guidance while executing its efficiency and RWA plan

Transcript intelligence

What changed

Compared with the prior-quarter analysis, management raised NII guidance to about £11bn, reported a 13.6% CET1 ratio and a £1.2bn first-half shareholder return, and advanced the Tesco acquisition and disposal plans. The RWA shift toward higher-return UK businesses remains central.

Guidance delta

Management raised net interest income guidance to about £11bn for the year, citing stable deposits and structural-hedge income.

Key takeaways

• Management said RoTE was above the 2024 target and on pace for the longer-term target above 12%.
• Net interest income guidance was raised to about £11bn for the year.
• The £1bn cost-saving programme remains on track, with the cost-to-income ratio around 63%.
• CET1 was 13.6%, alongside a £1.2bn shareholder return for the first half.
• The RWA strategy targets a shift toward higher-return UK businesses by 2026.

Management priorities

• Complete the Tesco retail-banking acquisition by November 2024.
• Continue the £1bn cost-saving programme and pursue further efficiency actions.
• Reinvest about 75% of maturing hedge notional.
• Shift about £30bn of RWAs toward higher-return UK franchises.
• Expand the Smart Investor digital programme and private-banking assets.