Amit Gul

Amit Gul from MGA Banker asked about the process for the 2028 strategy update, specifically whether it would involve revising capital allocation or primarily focus on efficiency and maximizing existing business paths. He also questioned why the U.S. Consumer Bank's NIM is expected to be flat for Q4 and Q1, given previously outlined factors for improvement.

Answer

CS Venkatakrishnan, Group Chief Executive, Barclays, stated that the strategy update would focus on intensifying efforts within the existing business footprint, emphasizing top-line revenue, efficiency, and product reach, rather than revising capital allocation. Anna Cross, Group Finance Director, Barclays, explained that the U.S. Consumer Bank's NIM is expected to be broadly flat for Q4 and Q1 due to seasonality and many improvement effects having largely flowed through. She noted a typical slight reduction in retail funding towards year-end due to balance growth and increased use of broker deposits, but reiterated that NIM is expected to increase again from Q2 onwards.

Amit Gul inquired whether the upcoming 2028 strategy update would involve revising capital allocation to businesses or primarily focus on efficiency and maximizing existing business potential. He also asked for clarification on why the US Consumer Bank's NIM is anticipated to be flattish for Q4 and Q1, despite previously outlined improvement factors.

Answer

CS Venkatakrishnan, Group Chief Executive, Barclays, stated that the strategy update would be a continuation and intensification of the current approach, focusing on top-line revenue, efficiency, and product depth/breadth to get more out of each business and the collective, rather than revising the business footprint. Anna Cross, Group Finance Director, Barclays, explained that the US Consumer Bank's NIM is expected to be broadly flat for Q4 and Q1 due to a degree of seasonality and many improvement effects having largely flowed through. She noted that slightly lower retail funding into the full year, as balances grow and more broker deposits are used, can have a minor impact on NIM, but expects it to increase from Q2 onwards.