Barclays PLC (NYSE:BCS) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 04:30 am ET


Barclays PLC (NYSE:BCS) Q4 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Welcome to the Barclays Full Year 2019 Results Analyst and Investor Conference Call.

I will now hand you over to Jes Staley, Group Chief Executive; and Tushar Morzaria, Group Finance Director.

Jes Staley

Good morning. 2019 was another year of progress for Barclays. We continued the positive momentum across our businesses, and this allowed us to increase returns to shareholders. We have delivered a 9% return on tangible equity, and we will pay a dividend of 9p per share, 3 times the dividend level of 2017. Our common equity Tier 1 ratio stands at 13.8%, above our target of around 13.5%. Income was up 2% on the year. We've maintained our cost discipline, reducing operating expenses to below GBP13.6 billion. This combination meant we improved our cost:income ratio for the third consecutive year to 63%, with positive jaws across all operating businesses. Profit before tax, excluding litigation and conduct, was GBP6.2 billion for the year, with a profit of GBP1.3 billion in the fourth quarter. Earnings per share was 24.4p. This sustainable performance is grounded in our diversified model. Our income is generated across a mix of customers and clients, products, geographies and currencies.

As result of the categorical benefits of our consumer and wholesale next, our business is resilient through an economic cycle. 45% of our income comes from outside the United Kingdom, and 47% of our income comes from our consumer banking and payments business. We have delivered on our target our OCD for 2019 and our focus on continuing to improve returns the group. Parties UK and our consumer cards and payments businesses are consistently high returns at 17.5% 15.9% respectively for the year. We continue to make good progress with our digital strategy and Barclays UK. more people than ever are now using our top ranked banking app has over a million. More customers access to on mobile than we have last year. We also fully integrated Barclaycard accounts into our banking app during the year so that our customers can now access even more of our products and one place.

Investment in our capabilities is enabling us to improve the client experience and increase efficiency across our Cards and payments business, strengthening existing relationships and helping us to build new ones. We just partnered with Emirate Airlines, the world's largest international carrier, to provide a new co-branded credit card to U.S. consumers this spring. This is a great growth opportunity for Barclays and adds to the strong and profitable partnerships we have with top brands in the U.S. like American Airlines and Uber. We've also recently signed a new European agreement with Visa, which will help us expand into new markets and invest in developing faster and smoother payments for merchants and consumers while maintaining the protection and security that our customers and clients expect. In the U.K., we've joined up with British Airways in an exclusive deal to reward our premier banking customers with Avios points earned as they do more business with Barclays.

We believe there