Barclays PLC Q3 2024 Results Summary
Business Context and Reporting Period
This Form 6-K filing reports Barclays PLC's unaudited financial results for the third quarter ended September 30, 2024, and the nine-month period year-to-date (YTD). The results were approved by the Board on October 23, 2024. The Group operates across Barclays UK, Barclays UK Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank, and Barclays US Consumer Bank.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YTD 9M 2024 | YTD 9M 2023 |
|---|---|---|---|---|
| Total Income | £6.5bn | £6.3bn | £19.8bn | £19.8bn |
| Profit Before Tax | £2.2bn | £1.9bn | £6.4bn | £6.4bn |
| Attributable Profit | £1.6bn | £1.3bn | £4.4bn | £4.4bn |
| Return on Tangible Equity (RoTE) | 12.3% | 11.0% | 11.5% | 12.5% |
| Cost:Income Ratio | 61% | 63% | 61% | 61% |
| Loan Loss Rate (LLR) | 37bps | 42bps | 42bps | 43bps |
| CET1 Ratio | 13.8% | 14.0% | 13.8% | 13.8% |
| TNAV per Share | 351p | 316p | 351p | 331p |
Material Changes vs. Prior Period
- Profitability: Q3 2024 profit before tax increased 18% year-on-year to £2.2bn, driven by higher income in the Investment Bank and Barclays UK, partially offset by foreign exchange impacts.
- Income: Group income rose 5% in Q3 to £6.5bn. The Investment Bank saw a 6% increase, while Barclays UK income grew 4%. US Consumer Bank income decreased 2% due to the strengthening of GBP against USD.
- Costs: Total operating expenses remained stable at £4.0bn in Q3. The Group delivered £0.3bn in gross cost efficiency savings in the quarter, offsetting inflation and enabling investment spend.
- Capital: The Common Equity Tier 1 (CET1) ratio remained stable at 13.8%, within the target range of 13-14%. Risk-weighted assets (RWAs) decreased to £340.4bn.
- Asset Quality: The loan loss rate improved to 37bps in Q3, below the through-the-cycle target range of 50-60bps.
Guidance, Outlook, and Risks
- 2024 Targets: Barclays remains on track to deliver a RoTE of greater than 10% for 2024. The Group cost:income ratio target remains at c.63%.
- 2026 Targets: The Group targets a RoTE of greater than 12% by 2026, with total income of c.£30bn and a cost:income ratio in the high 50s.
- Capital Returns: The Group plans to return at least £10bn to shareholders between 2024 and 2026 via dividends and buybacks. A £750m share buyback announced in H1 is well progressed.
- Acquisitions & Disposals: The acquisition of Tesco Bank's retail banking business is expected to complete on November 1, 2024, with an estimated day-1 net profit before tax impact of c.£0.3bn. Disposals of Italian mortgage portfolios and the German consumer finance business are ongoing.
- Risks: Key risks include macroeconomic volatility, geopolitical conflicts (Ukraine, Middle East), regulatory changes (Basel 3.1 implementation deferred to Jan 2026), and potential impacts from the FCA motor finance review.
Investor Verification Checklist
- Tesco Bank Acquisition: Verify the final completion date (Nov 1, 2024) and the actual day-1 profit impact versus the estimated £0.3bn.
- FX Sensitivity: Assess the impact of GBP/USD exchange rate fluctuations on US Consumer Bank and Investment Bank reported earnings.
- Cost Savings: Confirm the realization of the c.£1bn gross cost efficiency savings targeted for 2024.
- Regulatory Capital: Monitor the CET1 ratio trajectory against the 13-14% target range, particularly following the Tesco Bank integration and Basel 3.1 implementation.
- Disposal Proceeds: Track the completion and financial impact of the remaining Italian mortgage portfolio sales and the German consumer finance business disposal.