BARCLAYS PLC
For the period ended Dec 31, 2024. Filed Feb 13, 2025.
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The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.
FY2024 · Filed Feb 13, 2025
Contents
Key performance indicators
In assessing the financial performance of the Group, management uses a range of KPIs which focus on the Group’s financial strength,
the delivery of sustainable returns and cost management. KPIs reflect the targets and ambitions followed during 2024.
Non-IFRS performance measures
The Group’s management believes that the non-IFRS performance measures included in this document provide valuable information
to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’
performance between financial periods, and provide more detail concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for an assessment of the Group.
They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by management.
However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider
the IFRS measures as well. Refer to the non-IFRS performance measures section for further information and calculations of non-IFRS
performance measures included throughout this section and the most directly comparable IFRS measures.
| Definition | Why is it important and how the Group performed | |
|---|---|---|
| Common Equity Tier 1 (CET1) ratioCapital requirements are part of the regulatory framework governing how banks and depository institutions are supervised. Capital ratios express a bank’s capital as a percentage of its risk weighted assets (RWAs) as defined by the PRA.CET1 ratio is a measure of capital as defined within the Definition of Capital section of the PRA's Prudential and Resolution Policy - Banking Index. | The Group’s capital management objective is to maximise shareholder value by prudently managing the level and mix of its capital to: ensure the Group and all of its subsidiaries are appropriately capitalised relative to their regulatory minimum and stressed capital requirements, support the Group’s risk appetite, growth and strategic options, while seeking to maintain a robust credit proposition for the Group and its subsidiaries.The CET1 ratio of 13.6% (December 2023: 13.8%) was within our target range of 13-14%. The c.20bps decrease was due to RWAs increasing by £15.4bn to £358.1bn inclusive of Tesco Bank acquisition, strategic growth in lending and regulatory driven methodology changes. This was partially offset by an increase in CET1 capital of £1.3bn to £48.6bn.Group target: a CET1 ratio in the range of 13-14%.3 | CET1 ratio13.6% 2023: 13.8%2022: 13.9% |
| Return on average shareholders’ equityRoE is calculated as profit after tax attributable to ordinary shareholders, as a proportion of average shareholders’ equity excluding non-controlling interests and other equity instruments. | This measure indicates the return generated by the management of the business based on shareholders' equity. RoE for the Group was 9.1% (2023: 7.6%, 2022: 8.9%). | Group RoE9.1%2023: 7.6%2022: 8.9% |
| Return on average tangible shareholders’ equity (RoTE)RoTE is calculated as Group attributable profit, as a proportion of average tangible shareholders’ equity. | This measure indicates the return generated by the management of the business based on ordinary shareholders’ tangible equity. Achieving a target RoTE demonstrates the organisation’s ability to execute its strategy and align management’s interests with the shareholders’. RoTE lies at the heart of the Group’s capital allocation and performance management process. The Group performed in line with both RoTE2 targets in 2024. Statutory Group RoTE was 10.5% (2023: 9.0%) .Excluding the impact of inorganic activity1, Group RoTE was 10.5%.2024 Group target: RoTE2 of greater than 10.0% and c.10.5% excluding inorganic activity.2026: targeting Group RoTE2 of greater than 12%.3 | Group RoTE10.5%2023: 9.0%2022: 10.4% |
| Notes:1Inorganic activity refers to certain inorganic transactions announced as part of the FY23 Investor Update designed to improve Group RoTE beyond 2024. In FY24 this included the £220m loss on sale of the performing Italian retail mortgage portfolio, the £9m loss on disposal from the German consumer finance business and the £26m loss on sale of the non-performing Italian retail mortgage portfolio. This was offset by the day 1 net profit before tax of £347m from the acquisition of Tesco Bank.2Management does not assess forward-looking “return on equity” (target RoE) as a performance indicator of the business, and therefore reconciliation of the forward-looking non-IFRS measure “return on tangible equity” (target RoTE) to an equivalent IFRS measure is not available without unreasonable efforts.3Our targets and guidance are based on management's current expectations as to the macroeconomic environment and the business and are subject to change. | ||
| Strategy | Shareholderinformation | Climate andsustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC 2024Annual Report on Form 20-F | 323 |
|---|---|---|---|---|---|---|---|---|
| Key performance indicators (continued) | ||||||||
| Definition | Why is it important and how the Group performed | |
|---|---|---|
| Total operating expenses | Barclays views total operating expenses as a key strategic area for banks; those who actively manage costs and control them effectively will gain a strong competitive advantage.Group total operating expenses decreased to £16.7bn (2023: £16.9bn) including the £93m impact from the Bank of England levy scheme introduced in 2024. Group operating costs were 3% lower at £16.2bn, reflecting £0.8bn lower structural cost actions year-on-year partially offset by inflation, investment spend and business growth, enabled by £1.0bn of cost efficiency savings. 2024 total structural cost actions were £0.3bn (2023: £1.0bn) with Q424 structural cost actions of £0.1bn (Q423: £0.9bn). | Total operating expenses£16.7bn2023: £16.9bn2022: £16.7bn |
| Cost: income ratioTotal operating expenses divided by total income. | This is a measure management uses to assess the productivity of the business operations. Managing the cost base is a key execution priority for management and includes a review of all categories of discretionary spending and an analysis of how we can run the business to ensure that costs increase at a slower rate than income.The Group cost: income ratio was 62% (2023: 67%), in line with our target of c.63%, as the Group delivered positive cost:income jaws of 7%.2024 Group target: a cost: income ratio of c.63%.2026: targeting Group cost:income ratio of high 50s in percentage terms.1 | Cost: income ratio62%2023: 67%2022: 67% |
Note:
1 Our targets and guidance are based on management's current expectations as to the macroeconomic environment and the business and are subject to change.
| Strategy | Shareholderinformation | Climate andsustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC 2024Annual Report on Form 20-F | 324 |
|---|---|---|---|---|---|---|---|---|
| Consolidated summary income statement | ||||||||
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