Chris Mann

Chris Mann from Autonomous followed up on the U.S. Consumer Bank's ROTE target, asking for more color on expected returns for 2026 and beyond, given the 'greater than 12%' guidance. He also invited CS Venkatakrishnan to comment on the potential threat stablecoin issuance poses to the banking system and its longer-term implications for Barclays' business.

Answer

Anna Cross, Group Finance Director, Barclays, reaffirmed the 'greater than 12%' ROTE target for the U.S. Consumer Bank in 2026, noting that statutory ROTE would be impacted by the AA portfolio sale. She expressed confidence in pushing the business to mid-teens returns beyond 2026 through efficiency and income levers. CS Venkatakrishnan, Group Chief Executive, Barclays, discussed stablecoins in terms of their impact on deposits, alternative payment forms, and network. He stated Barclays is investigating the technology, participating in consortia, and studying use cases, acknowledging it will take time to understand its full value.

Chris Mann asked for more clarity on the US Consumer Bank's expected ROTE for 2026, given the current strong Q3 returns and the anticipated exit of the AA book. He also invited CS Venkatakrishnan to comment on the long-term implications and potential threats of stablecoin issuance for the banking system.

Answer

Anna Cross, Group Finance Director, Barclays, affirmed that the US Consumer Bank is on track for its greater than 12% ROTE target, noting that the 2026 statutory ROTE will be influenced by the AA gain on sale, with underlying performance aiming for continued progress towards a mid-teens business. CS Venkatakrishnan, Group Chief Executive, Barclays, described stablecoins as a broad and fascinating subject, touching on their potential impact on deposits, role as an alternative payment, and network implications. He stated that Barclays is investigating the technology, participating in consortia, and believes it will take time to fully understand the use cases and value.