Q1 2018 Results
Barclays has published its Q1 2018 Results.
Jes Staley, Group CEO said: “This has been a significant quarter for Barclays, one in which we have shown that our new operating model and our portfolio of diversified, profitable businesses are capable of producing improved returns for shareholders.
Our transatlantic wholesale and consumer bank has produced a Group Return on Tangible Equity (RoTE) of 11.0%, excluding litigation and conduct, with both Barclays UK and Barclays International delivering double digit returns.
Demonstrating the benefits of diversification, lower revenues in our UK businesses, driven by one-offs, were offset by a stronger performance in Barclays International, particularly in the Corporate and Investment Bank, which reported profit before tax up 49% and a RoTE of 13.0%.
The first quarter is typically a strong one of course, but this performance does increase confidence in our capacity to meet our Group RoTE targets of greater than 9% in 2019, and greater than 10% in 2020, excluding litigation and conduct and based on a Group CET1 ratio of c.13%.
This quarter we also reached an agreement with the US Department of Justice to resolve issues related to the sale of Residential Mortgage-Backed Securities between 2005 and 2007. While the penalty was substantial, this settlement represents a major milestone for Barclays, putting behind us a significant decade-old legacy matter.
The settlement with the US Department of Justice, together with additional charges relating to PPI, reduced our CET1 ratio by around 60bps to 12.7%, but given the earnings power of the Group, and our strong record in capital management, we are confident that we will get back to around 13% in good time.
It remains our intention to pay a dividend for 2018 of 6.5p, and we look forward to returning an increasing amount of capital to shareholders, both through the annual dividend, and via other means of return, such as buybacks, going forward.”