• Return on Tangible Equity (RoTE): 14% for Q1 2025.
• Total Income: GBP7.7 billion for Q1 2025.
• Cost-Income Ratio: 57% for Q1 2025.
• Net Interest Income (NII): Increased 13% year-on-year to GBP3 billion.
• Profit Before Tax: GBP2.7 billion, a 19% increase year-on-year.
• Earnings Per Share: Increased by 26% due to share buybacks.
• Common Equity Tier 1 (CET1) Ratio: 13.9% at the end of Q1 2025.
• Loan Loss Rate: 61 basis points for Q1 2025.
• Impairment Charge: GBP0.6 billion for Q1 2025.
• Barclays UK RoTE: 17.4% for Q1 2025.
• Investment Bank RoTE: 16.2% for Q1 2025.
• US Consumer Bank RoTE: 4.5% for Q1 2025.
• Structural Hedge Income: GBP10.2 billion locked in over the next two years.
• Liquidity Coverage Ratio (LCR): 175%.
• Net Stable Funding Ratio (NSFR): 136%.
• Loan Growth: GBP1.9 billion net lending driven by mortgages in Barclays UK.
• Net New Assets Under Management: GBP1 billion in Private Bank and Wealth Management.

• Warning! GuruFocus has detected 6 Warning Sign with BCS.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Barclays PLC (NYSE:BCS) achieved a return on tangible equity of 14% in Q1 2025, surpassing the target of approximately 11% for the year.
• The company's total income for Q1 2025 was GBP7.7 billion, with an 11% increase year-on-year, driven by growth across all divisions.
• Barclays PLC (NYSE:BCS) reported a strong capital position with a CET1 ratio of 13.9%, at the top end of their target range.
• The company upgraded its 2025 net interest income guidance for Barclays UK and the group, reflecting favorable deposit volumes and mix.
• Barclays PLC (NYSE:BCS) is making progress in cost efficiency, releasing GBP150 million of the expected GBP500 million growth cost efficiency savings for the year.

Negative Points

• The US Consumer Bank's return on tangible equity fell to 4.5% year-on-year, indicating challenges in this segment.
• Weaker client confidence is delaying investment banking transactions, impacting the investment banking fees.
• The Q1 group impairment charge was GBP0.6 billion, slightly above the 50 to 60 basis points guidance, reflecting economic uncertainties.
• Barclays PLC (NYSE:BCS) faces potential headwinds from regulatory changes, particularly concerning SRT transactions and ring-fencing regulations.
• The company noted that transactional and lending income could slow as companies and individuals become more cautious in the current economic environment.

Q & A Highlights

Q: Could you explain the drivers behind the increase in the US consumer impairment charge this quarter, and how committed are you to growing the book given potential delinquency trends? A: Angela Cross, Barclays Bank PLC - Director: The increase in the impairment charge is partly due to seasonal factors, reflecting high consumer spending in Q4. We expect this to reverse in Q2. We have also skewed the downside bias in the impairment charge to accelerate coverage, anticipating changes in economic forecasts. C.S. Venkatakrishnan, Barclays PLC - Group Chief Executive: We are committed to growing the business, focusing on risk-adjusted returns and diversifying our portfolio. We will continue to seek good partners and manage risk prudently.

Q: Regarding the recent regulatory letter on SRT transactions, are there any capital headwinds Barclays should consider? A: Angela Cross, Barclays Bank PLC - Director: The letter focused on the financing of SRT, which we do not engage in. We have been running our Colonnade program since 2016 and manage reinvestment risk carefully. We do not anticipate any capital consequences from this.

Q: How should we think about RWA developments in Q2, especially considering market risk and the potential impact of Basel 3 delays? A: Angela Cross, Barclays Bank PLC - Director: We aim to manage RWAs within the allocated GBP200 billion for the Investment Bank, adjusting nimbly to market conditions. The timing and impact of regulatory changes are uncertain, but our strategic plan to deploy RWA growth into high-return UK businesses remains intact.

Q: With the strong Q1 performance, why hasn't the 11% RoTE guidance for 2025 been updated? A: Angela Cross, Barclays Bank PLC - Director: Despite a strong start, it's only the first quarter. We are maintaining our circa 11% guidance without signaling changes in income, costs, or impairments. We remain confident in our targets for 2025 and 2026.

Q: Can you provide more detail on the strong performance of the Investment Bank in Q1 and the outlook for the rest of the year? A: Angela Cross, Barclays Bank PLC - Director: The Investment Bank performed well due to strong markets revenues and investments in securitized products and rates. We expect continued growth in financing and equity derivatives. While banking activity may be subdued, our diversified business model supports resilience.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.