Quick highlights of Barclays Strategy of ‘Go-To BANK‘ update by CEO Anthony Jenkins & CFO Tushar Morzaria
Barclays will be a focused international bank with 4 core businesses

1. Personal and Corporate
2. Barclaycard
3. Africa
4. The Investment Bank

Barclays Non-Core
to be formed to exit,sell or run down of non strategic assets.
It will include:

• Parts of the Investment Bank such as physical commodities (excluding precious metals) and elements of other trading businesses including emerging markets and non-standard derivatives
• European retail banking operations
• Non-core corporate banking in Europe and the Middle East.
• certain fair-value, long-dated loans in the UK
• a small number of Barclaycard and Wealth portfolios.

It targets a reduction in Non-Core RWAs to ~ £50B by EY2016 with the drag on Group return on equity down from c. 6% in 2013
Cost guidance

• 2014 Group operating expense revised to ~£17B, down from our earlier target of £17.5B
• 2014 Group gross headcount reduction revised from 10-12,000 to ~ 14,000.

Leadership

• Ashok Vaswani will now lead Personal and Corporate Banking division.
  • Pete Horrell, as CEO of Wealth,
  • John Winter, as CEO of Corporate Banking,
    will report to Ashok with immediate effect.
• Val Soranno Keating will continue to lead Barclaycard,
• Maria Ramos will lead Africa business.
• Tom King will lead the Investment Bank.
• Eric Bommensath will step down from the Executive Committee to lead Barclays Non-Core, reporting to Antony
  Jenkins.

Financial targets
New financial targets set to assess progress:

• principal commitment to deliver a ROE above the COE on a sustainable basis.
  That means an ROE >12% by 2016 for Core business
• On capital, targeting a fully loaded CET 1 ratio >11% in 2016.
• a CRD IV leverage ratio > 4%.
• ambition for the dividend is a payout ratio between 40 & 50%, although we expect to be at 40%
  until we reach a 10.5% CET 1 milestone in 2015.
• committing to a cost target < £14.5B in 2016 for Core business
• estimating an ROE drag of < 3% in 2016 for Non-Core business