{ "docId": "019dd923-5e88-73ef-bd5b-6bedd64d9e01", "docSlug": "71ac17290f26dcd4", "documentTitle": "Bread Financial Barclays Global Financial Services Conference", "authorId": "Barclays", "authorName": "Barclays", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.706, "pageNumber": 3, "pageCount": 15, "prevPage": 2, "nextPage": 4, "slideType": "other", "function": "summarize", "density": "overcrowded", "nDataPoints": 5, "notes": "This is a transcript page from an investor conference or earnings call.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd5b-6bedd64d9e01/3", "deckHref": "/decks/019dd923-5e88-73ef-bd5b-6bedd64d9e01", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd5b-6bedd64d9e01.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd5b-6bedd64d9e01#slide-3", "components": [ { "bbox": null, "kind": "callout", "text": "Our target is above 10%, and we are fairly confident of meeting that target for this year, 2023.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-103e-75c4-b71a-0c6bdf7bbd2c", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "RoTE: 13.2%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-103e-75c4-b71a-168a5ea8de08", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.065, "w": 0.726, "x": 0.137, "y": 0.158 }, "kind": "paragraph", "text": "And maybe we put up the next ARS question to get the audience involved. \"What are you most concerned about for Barclays' returns? Outlook in the current environment?\" I guess we can come back and address that. But I guess when you think about returns, Anna, you mentioned 13.2% RoTE in the first half. Obviously, it appears likely to be up over 10% for the year. But looking out, what kind of returns do you think Barclays is capable of?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "02a916ce-c0a9-4f75-9c8d-0a1d4655022e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.726, "x": 0.137, "y": 0.498 }, "kind": "paragraph", "text": "It's interesting. You look at the audience response. There seems to be equal concern about the revenue outlook and the regulatory outlook. I guess when you think about how Barclays is positioned, I guess, maybe where you are kind of most concerned about, and how you're approaching it?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1d245c02-9b7f-4f17-b0f8-fd911c45c8ce", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.165, "w": 0.726, "x": 0.137, "y": 0.581 }, "kind": "paragraph", "text": "So, I think on the revenue side what you're seeing is, obviously, the normalisation of interest rates and the stabilisation of that aspect of our earnings. You continue, I think, on the investment banking side – many of the people at the conference have spoken about it – the stabilisation in the markets and in the view is leading to some hope and expectation of a revival of activity, which we are seeing very, very early signs of, but it'll take time to play out. It's not something that's happening this week or this month. And I think on the regulatory outlook, the rules are fairly fresh, a little fresher in the United States than they are in Europe. And it's complex. It's large. We are multi-jurisdictional. We have to digest the impact. But suffice it to say that we'll work with the impact and we'll manage our business appropriately in line with the rules.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2a74ce24-f47b-44f9-a237-b164396e0fd7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.726, "x": 0.137, "y": 0.075 }, "kind": "paragraph", "text": "So, we're really well placed, though, I think both in terms of the credit decisions we've taken in the past, the provisions we've got on the balance sheet, but also some of the extra protection that we've put around ourselves in terms of our securitisations across wholesale.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bde564cf-1e59-476b-8659-72b862dd8296", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.105, "w": 0.726, "x": 0.137, "y": 0.261 }, "kind": "paragraph", "text": "Let me just add to what Anna said. I mean, looking at [over] 13% so far for the first half of this year, but that builds on two years of over-11%, double-digit returns; 11% and 13% – or 13% and 11% the past two years. And that, by the way, is true not just at the aggregate Group level, but it's true across the businesses of the Group. All performing at a double-digit level. So, what you're seeing is businesses that operate in the manner we'd expect them to through the different ups and downs that they individually experience, as well as, put together, give a fairly stable earnings profile to the bank.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ca51ef88-4d78-40cb-9dcf-f34d8771005b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.085, "w": 0.726, "x": 0.137, "y": 0.375 }, "kind": "paragraph", "text": "And so, our target is above 10%, and we are fairly confident of meeting that target for this year, 2023. And as we said, we see the monetary policy environment and the economic environment being stable as we approach the end of the year and consumers behaving in the way Anna said, which is tightening their balance sheet and being prudent themselves; which, when you add their individual credit risk posture to our credit risk posture on top of that, it makes us believe that we've got fairly well controlled and good portfolio.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d5bfdc19-d96e-4d1d-bdde-1a8a107bd1eb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.065, "w": 0.726, "x": 0.137, "y": 0.784 }, "kind": "paragraph", "text": "I guess you mentioned the interest rate backdrop. And when I asked around with Barclays investors, net interest margin actually came up a lot in the U.K. In July, you lowered guidance modestly, I think from [above] 3.20% to 3.15%. Maybe talk to what factors could lead to further changes, going forward. And perhaps you can talk to your structural hedge program and how that will work to help sustain margins.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d82fcbb0-15b2-464f-ac21-8c0496e05052", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "And so, our target is above 10%, and we are fairly confident of meeting that target for this year, 2023. — C. S. Venkatakrishnan", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-103e-75c4-b71a-12a6de60d88d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.125, "x": 0.137, "y": 0.134 }, "kind": "title", "text": "Jason Goldberg", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "176c4310-342f-4f81-ad09-ba062dbcd431", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.175, "x": 0.137, "y": 0.237 }, "kind": "title", "text": "C. S. Venkatakrishnan", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8753fdec-d66e-410b-a04f-85d00d1a336b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.125, "x": 0.137, "y": 0.474 }, "kind": "title", "text": "Jason Goldberg", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b61c6743-22cd-4a74-9e96-39c2f67e9d32", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.125, "x": 0.137, "y": 0.76 }, "kind": "title", "text": "Jason Goldberg", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c270ad5f-58d4-431f-86d6-863428d600d2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.175, "x": 0.137, "y": 0.557 }, "kind": "title", "text": "C. S. Venkatakrishnan", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cec87203-5f85-4c1c-b742-6a143178eeef", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Commitment & Consistency", "slug": "commitment-consistency", "agent": "Storyteller", "layer": "loop", "matchId": "019dd95a-18fa-708b-8059-c50ce4dfc44d", "evidence": "Reiterates prior public target, signalling consistency with earlier guidance", "confidence": 70 }, { "name": "Concrete Language", "slug": "concrete-language", "agent": "Storyteller", "layer": "slide", "matchId": "019dd95a-18fa-708b-8059-c0fe6d65d67a", "evidence": "Target above 10% RoTE quoted with year (2023)", "confidence": 85 } ], "frameworks": [], "arcBeats": [ { "to": 4, "from": 2, "beatId": "019dd95a-07a6-74c7-9029-a7aee0f380e6", "arcName": "The Triple Take", "arcSlug": "triple-take", "beatName": "The Facts (What)", "beatSlug": "triple-take-the-facts-what", "evidence": "RoTE 11.4%, 13.2% half-year, low-60s cost-income — performance metrics laid out", "position": 1, "confidence": 45, "parentBeatName": "Setup", "parentBeatSlug": "setup" } ], "loops": [ { "to": 4, "from": 2, "name": "Pattern Hunter", "slug": "02-pattern-hunter", "bestFor": "Time-pressed audiences, building consensus, when data is strong", "matchId": "019dd95a-08f7-737a-a004-207633da52ca", "evidence": "Multiple metrics (RoTE 11.4%, income +6%, costs +2%, low-60s C/I) built up as evidence of consistent execution", "position": 1, "objective": "Stack performance evidence into a coherent track record", "structure": "Evidence A -> Evidence B -> Evidence C -> Pattern/Conclusion", "confidence": 55, "description": "Group multiple pieces of evidence that together point to a pattern or conclusion" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }