Q4 2025 Barclays Bank PLC Earnings Call

Yeah.

Good morning, Thank you for joining us today.

So thank you.

C.S. Venkatakrishnan: Good morning. Thank you for joining us today. So thank you. We have today the Barclays full year 2025 results, our progress, and our target update. Today we will announce outline targets for the next three years to deliver an even better run, a more strongly performing and a higher returning Barclays. This builds on the improvements which we have delivered in the last two years of our plan and which we shared with you in February of 2024. But first, let us take stock of the progress so far, starting with our 2025 results. There will be an opportunity for those in the room to ask questions at the very end of our presentation. So turning now to slide 4. Barclays achieved all financial targets and guidance in 2025. We generated a return on tangible equity of 11.3%.

We have today the Barclays full year 2025 results, our progress and our target update.

Today, we will announce outlined targets for the next three years to deliver an even better run and more strongly performing and a higher returning Barclays.

This builds on the improvements, which we have delivered in the last two years of our plan and which we shared with you in February of 2024.

But first let us take stock of the progress so far starting with our 2025 results.

There will be an opportunity for those in the room to ask questions at the very end of our presentation.

So turning now to slide four.

Barclays achieved all financial targets and guidance in 2025 with.

We generated a return on tangible equity of 11, 3% our top line grew by 9% year on year to $29 1 billion pounds.

C.S. Venkatakrishnan: Our top line grew by 9% year-on-year to GBP 29.1 billion, and we achieved our NII guidance for the group and for Barclays UK. Our cost income ratio once again improved year-on-year to 61%, and the group loan loss rate of 52 basis points was comfortably within the 50 basis points, 60 basis points through the cycle guidance. We have also announced today GBP 3.7 billion of shareholder distributions for 2025. This is up from GBP 3 billion in 2024. This includes dividends of GBP 1.2 billion and share buybacks of GBP 2.5 billion, and that includes a billion-pound tranche, which we announced today. And importantly, we remain well capitalized, ending the year at the top end of our 13% to 14% CET1 range after accounting for today's buyback.

And we achieved our NII guidance for the group and for Barclays UK.

Our cost income ratio once again improved year on year to 61%.

And the group loan loss rate of 52 basis points was comfortably within the 50 basis points 60 basis points through the cycle guidance.

We have also announced today.

$3 7 billion pounds of shareholder distributions for 2025. This is up from 3 billion pounds in 2020 for.

This includes dividends of $1 2 billion pounds.

And share buybacks of $2 5 billion pounds and that includes 1 billion pound tranche, which we announced today.

And importantly, we remain well capitalized ending the year at the top end of our 13% to 14% CET one range after accounting for today's buyback.

We are delivering these improvements as we said we would.

In 2025, we simplified the bank further achieving 700 million pounds of gross efficiency savings versus the 500 million pounds target, which we had had for the year.

C.S. Venkatakrishnan: You know, we are delivering these improvements as we said we would. In 2025, we simplified the bank further, achieving GBP 700 million of gross efficiency savings versus the GBP 500 million pound target, which we had had for the year. We divested the remaining non-strategic businesses, and we announced a long-term partnership for payment acceptance. Operational improvements across the group are creating a better Barclays, driving stronger financial performance. All our divisions generated double-digit ROTE in 2025, and this was an improvement on the prior year. In the investment bank, greater capital productivity and cost efficiency contributed to a 2.1 percentage point increase in ROTE to 10.6%. And the US Consumer Bank ROTE increased 1.9 percentage points to 11%. This reflects additional scale and operational progress to improve the business mix, to improve pricing, and improve efficiency.

We divested the remaining non strategic businesses, and we announced a long term partnership for payment acceptance.

Operational improvements across the group are creating a better Barclays driving stronger financial performance.

All our divisions generated double digit out LTE in 2025, and this was an improvement on the prior year.

The investment bank greater capital productivity and cost efficiency contributed to a two one percentage point increase in <unk> to 10, 6%.

In the U S consumer bank, our LTE increased one nine percentage points to 11%.

This reflects additional scale and operational progress to improve the business mix to improve pricing and improve efficiency.

Finally, we are continuing to rebalance the group towards the three highest returning UK businesses.

C.S. Venkatakrishnan: Finally, we are continuing to rebalance the group towards the three highest returning UK businesses. We have now delivered GBP 20 billion of the GBP 30 billion RWA growth, which we targeted for the end of 2026, and this includes GBP 7 billion in 2025. So we see good momentum with six consecutive quarters of organic loan growth in Barclays UK and five such quarters in the UK Corporate Bank. Progress in each of these three areas is delivering structurally higher and more consistent group returns. It has also increased my confidence in and my expectations for the group. Stronger and more consistent returns mean that we are better equipped to serve our clients and that we have more capacity to invest in the business.

We have now delivered 20 billion pounds of 30 billion pound <unk> growth, which we targeted for the end of 2026 and this includes 7 billion pounds in 2025.

So we see good momentum with six consecutive quarters of organic loan growth in Barclays UK and five such quarters in the U K corporate bank.

Progress in each of these three areas is delivering structurally higher and more consistent group returns.

It has also increased my confidence in and my expectations for the group.

Stronger and more consistent returns mean that we are better equipped to serve our clients and that we have more capacity to invest in the business.

All of this.

It's providing a solid foundation to create more value for our shareholders in the next phase of our plan through to 2028 and beyond.

C.S. Venkatakrishnan: All of this is providing a solid foundation to create more value for our shareholders in the next phase of our plan through to 2028 and beyond. We will return to this later. Our progress in the last two years reflects the consistently excellent work of our colleagues, over 90,000 of them. They implement our strategy every day and are core to our success. So I'm therefore pleased to announce today a grant of approximately GBP 500 of shares to the vast majority of our colleagues, essentially all full-time employees outside of managing directors. This is the second year of such a reward, and it is more than just a reward for past effort. We are aligning the actions of our colleagues with the ultimate outcome of their efforts, which is the change in our share price.

We will return to this later.

Our progress in the last two years reflects consist the consistently excellent work of our colleagues over 90000 of them.

They implement our strategy every day and are core to our success.

So I'm therefore pleased to announce today, a grant of approximately 500 pounds of shares to the vast majority of our colleagues essentially all full time employees outside of managing directors.

This is the second year of such a reward.

And it is more than just a reward for past effort.

We are aligning the actions of our colleagues with the ultimate outcome of their efforts, which is the change in our share price and I believe this equity ownership is really important for all our colleagues.

With that over to you Anna.

C.S. Venkatakrishnan: I believe this equity ownership is really important for all our colleagues. With that, over to you, Anna.

Okay.

Thank you Venkat and good morning, everyone.

Slide six summarizes the financial highlights for the fourth quarter and full year.

Anna Cross: Thank you, Venkat, and good morning, everyone. Slide 6 summarizes the financial highlights for the Q4 and full year. Before going into the detail, I would remind you that a weaker US dollar reduced our reported income, costs, and impairments. Return on tangible equity increased from 10.5% to 11.3% year-on-year, in line with guidance. Pre-provision profit increased by 13% as income growth, coupled with efficiency actions, supported 3% positive jaws. Profit before tax increased 13% to GBP 9.1 billion, and earnings per share by 22% to 43.8 pence. My focus, as ever, is on operational progress, which strengthened throughout the year. Income increased by 9% year-on-year to GBP 29.1 billion.

Before getting into the detail I would remind you is that a weaker U S dollar reduced our reported income costs and impairments.

Return on tangible equity increased from 10, 5% to 11, 3% year on year in line with guidance.

Pre provision profit increased by 13% as income growth coupled with efficiency actions supported 3% positive jaws.

Profit before tax increased 13% to $9 1 billion pounds.

And earnings per share by 22% to 43 eight pence.

<unk> as <unk> is an operational progress which strengthened throughout the year.

Income increased by 9% year on year to $29 1 billion.

Weekly stable income streams by 9% supported by 8% growth in retail and corporate businesses and 17% growth in financing with end markets the strength and predictability of this crisis means we are upgrading our expected credit income to circa 31 billion.

Anna Cross: We grew stable income streams by 9%, supported by 8% growth in retail and corporate businesses and 17% growth in financing within markets. The strength and predictability of this growth means we are upgrading our expected group income to circa GBP 31 billion in 2026 versus circa GBP 30 billion previously. Elsewhere in the investment bank, intermediation revenues increased by 13% as we helped clients navigate a volatile environment, while our IB fees were stable. Group net interest income increased for the fourth consecutive year and by 13% year-on-year to GBP 12.8 billion, reflecting three factors. First, stable deposits across the group supported further significant growth of structural hedge income, which I will discuss shortly. Second, lending grew across all divisions, and we exited the year with strong momentum. And third, operational progress in the US consumer bank drove stronger NII and NIM.

In 2006 versus circa 30 billion previously.

Elsewhere in the investment Bank intermediation revenues increased by 13% as we helped clients navigate a volatile environment after rbc's were stable.

Great net interest income increased for the fourth consecutive year and by 13% year on year to $12 8 billion, reflecting three factors.

First stable deposits across the group supported further significant growth of structural hedge income, which I will discuss shortly.

Second lending grew across all divisions, and we exited the year with strong momentum.

And third operational progress in the U S consumer bank drive stronger NII and NIM.

Turning to the structural hedge.

As a reminder, the hedge is designed to reduce income volatility and manage interest rate risk. We had assumed that we reinvest 90% of maturing hedges, but we fully reinvested assets throughout 'twenty five.

Anna Cross: Turning to the structural hedge. As a reminder, the hedge is designed to reduce income volatility and manage interest rate risk. We had assumed that we reinvest 90% of maturing hedges, but we fully reinvested assets throughout 2025. We also reinvested hedges at higher rates than planned. As a result, hedge income increased GBP 1.2 billion to 5.9 billion, contributing 46% of group NII, excluding IB and head office. The increase in the average hedge duration that I called out last quarter, from 3 to 3.5 years, further supports the predictability of hedge income, which I will return to later. Now moving on to costs. We delivered GBP 700 million of gross efficiency savings in 2025 and GBP 1.7 billion cumulatively towards the GBP 2 billion target by 2026. These savings have contributed to 10% positive jaws since 2023.

We also reinvested hedges at higher rates than planned.

As a result hedge income increased $1 2 billion to $5 9 billion contributing 46% of greet NII, excluding IP and head office.

The increase in the average hedge duration that I called out last quarter from three to three and a half years further supports the predictability of hedging, which I will return to later.

Now moving onto costs.

We delivered $700 million of gross efficiency savings in 'twenty, five and $1 7 billion cumulatively towards the <unk> billion target by 2006.

These savings have contributed to 10% positive jaws in 'twenty three.

The group cost income ratio decreased again to 61% in line with guidance. Despite several cost headwinds in the year.

Anna Cross: The group cost-to-income ratio decreased again to 61%, in line with guidance, despite several cost headwinds in the year. Total costs increased by GBP 1 billion to GBP 17.7 billion, with nearly half of this coming from the addition of Tesco Bank. We chose to accelerate some discretionary investments, ending the year with structural cost actions around the top of the 200 to 300 million guided range. The 2025 group cost base also included some items that we do not expect to repeat. First, the GBP 235 million motor finance provision in Q3, without which we would have ended the year at 60%. And second, circa GBP 50 million of one-off costs in Q4, including a VAT expense in Barclays UK. Turning now to impairment.

Total cost increased by $1 billion to $17 7 billion with nearly half of this coming from the addition of Tesco Bank.

And we chose to accelerate some discretionary investments ending the year with structural cost actions around the top of the two to 300 million guided range.

The 25 Greek cost base also included some items that we do not expect to repeat.

First the $235 million major finance provisioning Q3, without which we would have ended the year at 60%.

And second circa $50 million of one off costs in Q4, including a vast expanse in Barclays UK.

Turning now to impairment.

The full year impairment charge of $2 3 billion equating to a loan loss rate of 52 basis points in line with a through the cycle guidance of 50 to 60 basis points.

Anna Cross: The full year impairment charge of GBP 2.3 billion equated to a loan loss rate of 52 basis points, in line with the through-the-cycle guidance of 50 to 60 basis points. The credit picture remains benign, with low and stable consumer delinquencies and wholesale loan loss rates below the through-the-cycle range. The Q4 loan loss rate of 48 basis points fell versus Q3, reflecting lower single name charges in the investment bank. Calibration of our impairment models to better capture consumer behavior resulted in lower loan losses in Barclays UK throughout 2025, including in Q4. With these now largely complete, you should expect the Barclays UK loan loss rate to be closer to 30 basis points from Q1. The US Consumer Bank loan loss rate was higher in the quarter, as expected, shown on the next slide.

The credit picture remains benign with a low and stable consumer delinquencies and wholesale loan loss rates below the through the cycle range.

The Q4 loan loss rate of 48 basis points thou versus Q3, reflecting lower single name charges in the investment bank.

Calibration of our impairment models to better capture consumer behavior resulted in lower loan losses in Barclays UK throughout 25, including in Q4 with these now largely complete you should expect Barclays UK loan loss rate to be closer to 30.

Basis points from Q1.

The U S consumer bank loan loss rate was higher in the quarter as expected shown on the next slide.

30, and 90 day delinquencies were seasonally higher versus Q3 and broadly stable year on year in U S. Consumer behavior remains resilient as we show on slide 95 in the appendix.

Anna Cross: 30- and 90-day delinquencies were seasonally higher versus Q3 and broadly stable year-on-year, and US consumer behavior remains resilient, as we show on slide 95 in the appendix. The Q4 impairment charge increased $52 million quarter-on-quarter, reflecting higher balances. As a reminder, the Q1 loan loss rate tends to remain elevated following holiday-related spend in Q4. Turning now to UK lending. We have now deployed GBP 20 billion of business growth RWAs in the UK, including GBP 13 billion of organic growth, and we exited 2025 with strong momentum. Mortgage balances have grown for 6 quarters, and we delivered GBP 3.1 billion of net lending in Q4. Mortgage applications in 2025 were higher than in any prior year, supported by Kensington and increased broker engagement following improvements to the platform in Q3....

The key for impairment charge increased 52 million quarter on quarter, reflecting higher balances.

As a reminder, the key one loan loss rate tends to remain elevated following holiday related spend in Q4.

Turning now to U K lending.

We have now deployed 20 billion of business growth or to the raise in the UK, including 13 billion of organic rice, and we exited 25 with strong momentum.

Mortgage balances have grain for six quarters, and we delivered $3 1 billion of net lending in Q4.

Mortgage applications and 25 were higher than in any prior year supported by Kensington and increased breaker engagement following improvements to the platform in Q3.

We also acquired one 4 million new credit card customers in the year up from $1 1 million and 24.

Anna Cross: We also acquired 1.4 million new credit card customers in the year, up from 1.1 million in 2024. As we show in our operational data pack on slide 79, this included 300,000 new Tesco Bank customers. Supported by this, credit card balances grew to the highest level since 2017. Core business banking lending has grown for 4 consecutive quarters, and we expect overall balances to grow in H2 as headwinds from the run-off portfolio diminish. UK Corporate Bank lending grew 18% year-on-year, and market share increased 100 basis points in this period to 9.6%. In each case, we have further to go, supporting our plan to deploy 30 billion of RWAs by 2026 and onwards from there. Turning to Barclays UK in more detail.

As we show in our operational data pack on Slide 79. This included 300000, New test every bank customers.

Supported by this credit card balances grew to the highest level since 2017.

Core business banking lending has grown for four consecutive quarters, and we expect overall balances to grow in half two as headwinds from the run off portfolio diminish.

UK corporate bank lending grew 18% year on year and market share increased 100 basis points in this period to nine 6%.

In each case, we have further to go supporting our plan to deploy $30 billion of ought to be raised by 'twenty six and onwards from there.

Turning to Barclays UK in more detail.

You can see financial highlights on slide 15, but I will talk to slide 16.

Anna Cross: You can see financial highlights on slide 15, but I will talk to slide 16. ROTE was 23.8% in the quarter and 20.7% for the year. NII of GBP 2 billion increased 11% year-on-year and 3% quarter-on-quarter. On a full year basis, NII of GBP 7.7 billion was in line with guidance, and we expect an increase to between GBP 8.1 and 8.3 billion in 2026. The hedge is expected to drive around GBP 550 million of additional NII. As I'll cover in more detail later, this is a smaller allocation of the total hedge income growth versus 2025, with more growth now allocated elsewhere in the group.

Rosie was 23, 8% in the quarter and 27% for the year.

NII of $2 billion increased 11% year on year, and 3% quarter on quarter.

On a full year basis NII of $7 7 billion was in line with guidance and we expect an increase to between eight one and $8 3 billion in 2006.

The hedge is expected to drive around $550 million of additional NII.

As I'll cover in more detail later this is a smaller allocation of the total hedging income growth versus 25 with more growth now allocated elsewhere in the group.

We expect to circa 100 million product margin impact in our mortgage book driven by maturities of higher margin loans written during the stamp duty holiday in early 'twenty. One this will be weighted to half one.

Anna Cross: We expect a circa GBP 100 million product margin impact in our mortgage book, driven by maturities of higher margin loans written during the stamp duty holiday in early 2021. This will be weighted to H1. We also expect lending growth to continue throughout the year. As a planning matter, we expect this benefit to be offset by continued but easing deposit margin compression. These effects will lower NII quarter-on-quarter in Q1, with stability and growth from Q2 and Q3, and on a year-on-year basis, we expect growth in each quarter of 2026. Non-NII of GBP 247 million was broadly stable year-on-year, with a full year just above GBP 1 billion. We expect a similar level in 2026, with some seasonal variation. The one-off items I described earlier accounted for around half of the year-on-year increase in operating costs in Q4.

We also expect lending rates to continue throughout the year.

As a planning matter, we expect this benefit to be offset by continued but easing deposit margin compression.

These effects will lower NII quarter on quarter in Q1 with stability and growth from Q2, and Q3 and on a year on year basis, we expect growth in each quarter of 2006.

Non NII of $247 million was broadly stable year on year with a full year just above $1 billion, we expect a similar level in 2006 with some seasonal variation.

The one off items I described earlier accounted for around half of the year on year increase in operating costs. In Q4. This should not repeat in Q1 'twenty six.

Moving on to the Barclays U K balance sheet.

Anna Cross: These should not repeat in Q1 2026. Moving on to the Barclays UK balance sheet. Deposit balances increased £3.1 billion versus Q3 and were broadly stable versus last year. Customers continued to seek higher yielding products and time deposits, which both grew quarter-on-quarter. Lending grew for the sixth consecutive quarter and by 4% year-on-year, driven by mortgages and cards. Moving on to the UK Corporate Bank. ROTE was 19.1% in the quarter and 18.9% for the year. Q4 income grew by 18%, while costs grew by 8% as we accelerated discretionary investments. These investments support delivery of a high 40s cost-income ratio in 2026, following a 4% improvement in 2025 to 51%. Q4 NII growth of 22% reflected stronger volumes across both sides of the balance sheet.

Deposit balances increased $3 1 billion versus Q3 and were broadly stable versus last year cut.

Customers continue to seek high yielding products from time deposits, which both grew quarter on quarter.

Lending grew for the sixth consecutive quarter and by 4% year on year, driven by mortgages and cards.

Moving on to the U K corporate bank.

Roti was 19, 1% in the quarter and 18, 9% for the year.

Q4 income grew by 18% while cost grew by 8% as we accelerated discretionary investments.

These investments support delivery of our high Forty's cost income ratio in 'twenty six following a four percentage.

4% improvement in 25% to 51%.

Q4, NII growth of 22% reflected stronger volumes across both sides of the balance sheet lending grew 18% year on year, reflecting improvements in the lending process.

Anna Cross: Lending grew 18% year-on-year, reflecting improvements in the lending process. Deposits grew by 7%, resulting in a 34% loan-to-deposit ratio, up 3 percentage points. Turning now to private bank and wealth management. ROTE was 26.3% for the year, on track for the greater than 25% target for 2026. Q4 ROTE was impacted by higher costs from an acceleration of investments and a historic litigation charge. This was small in the context of the group, but reduced this division's Q4 ROTE meaningfully to 12.6%. Client assets and liabilities grew 9% year-on-year, and assets under management grew 11%. More than half of this AUM growth came from net new assets under management of GBP 3.3 billion, including GBP 0.6 billion in Q4.

Deposits grew by 7%, resulting in a 34% loan to deposit ratio up three percentage points.

Turning now to private banking wealth management.

<unk> was 26, 3% for the year on track for the greater than 25% target for 2006.

Q4 rate was impacted by higher costs from an acceleration of investments under historic litigation charge. This was small in the context of the group, but reduced the division's Q4 rates meaningfully to 12, 6%.

Client assets and liabilities grew 9% year on year and assets under management grew 11%.

More than half of this growth came from net new assets under management of $3 3 billion, including <unk> 6 billion in Q4.

This contributed to 4% quarter on quarter income growth and we expect continued volume and income growth in 2006.

Anna Cross: This contributed to 4% quarter-over-quarter income growth, and we expect continued volume and income growth in 2026. Turning now to the investment bank. As a reminder, our objective here is to generate higher structural returns by improving the productivity, mix, and efficiency of the business. Risk-weighted assets have been stable for 4 years. Income to average RWAs has increased by 110 basis points since 2023 to 6.6%. In the top right, more stable income from financing and the international corporate bank grew 14% and accounted for 42% of IB income, up from 32% in 2022. Moving to the bottom left, markets income has grown year on year for 7 consecutive quarters as we deepen client relationships, and investment banking income has grown for 5 of the past 7 quarters.

Turning now to the investment bank.

As a reminder, our objective here is to generate higher structural returns by improving the productivity mix and efficiency of the business.

Risk weighted assets have been stable for four years.

Income to average after the raise has increased by 110 basis points since 2003 to six 6%.

In the top right more stable income from financing and the international corporate Bank grew 14%.

And accounted for 42% of IP income up from 32% in 2008.

Moving to the bottom left markets income has grown year on year for seven consecutive quarters as we deepen client relationships and investment banking income has grown for five of the past seven quarters.

Together with seven consecutive quarters of positive operating jaws. This has increased the financial performance of the division.

Anna Cross: Together, with 7 consecutive quarters of positive operating jaws, this has improved the financial performance of the division. The investment bank delivered a full-year ROTE of 10.6% in 2025, up 210 basis points. Q4 ROTE was seasonally low at 4%, up modestly year-on-year. Income grew 7%, which we show in more detail on slide 25, and costs were flat. In US dollars, markets income was up 17% year-on-year, delivering around two-thirds of the investment bank's income in the quarter. FIC and equities grew 14% and 21%, respectively. We saw particular strength in securitized products within FIC and prime and equity derivatives in equities. Financing income grew 20% year-on-year and for the sixth consecutive quarter, with prime balances up 30% year-on-year, including strong growth in Asia.

The investment bank delivered a fully a royalty of 10, 6% and 25 up 210 basis points.

Q4, <unk> was seasonally low at 4% up modestly year on year.

Income grew 7%, which we show in more detail on slide 25 and costs were flat.

In U S dollars markets income was up 17% year on year delivering around two thirds of the investment banks income in the quarter.

FIC and equities grew 14% and 21% respectively. We saw particular strength in securitized products within FIC and prime and equity derivatives in equities.

Financing income grew 20% year on year and for the sixth consecutive quarter with prime balances up 30% year on year, including strong growth in Asia.

In investment banking income was broadly stable.

The U S government shutdown weighed on ECM activity with the majority of Q4 ipos pushed into half one 'twenty six.

Anna Cross: In investment banking, income was broadly stable. The US government shutdown weighed on ECM activity, with the majority of Q4 IPOs pushed into H1 2026. This was offset by a 7% increase in DCM fees and an 18% increase in advisory fees. The M&A pipeline is strong, and our share of announced fees and volumes due to complete in 2026 has increased year-on-year. International Corporate Bank income was broadly stable, including 5% growth in transaction banking income. Turning now to the US Consumer Bank. Operational progress has continued. Net receivables grew 5% quarter-on-quarter and 10% year-on-year, around half of which related to the addition of the General Motors balances at the end of Q3. Our partnership cards business has grown faster than the overall market in 16 of the last 20 quarters.

This was offset by a 7% increase in D C and fees and an 18% increase in advisory fees.

The M&A pipeline is strong and our share of announced CS and volume's due to complete in 2006 has increased year on year.

International Corporate Bank income was broadly stable, including 5% growth in transaction banking income too.

Turning now to the U S consumer bank.

Operational progress has continued.

Net receivables grew 5% quarter on quarter, and 10% year on year around half of which related to the addition of the general motors balances at the end of Q3.

Our partnership cards business has grown faster than the overall market in 16 of the last 20 quarters.

NIM improved slightly versus Q3 to 11, 6% supported by the repricing that we undertook in 2004 and portfolio mix.

Anna Cross: NIM improved slightly versus Q3 to 11.6%, supported by the repricing that we undertook in 2024 and portfolio mix. Retail deposits grew 5% quarter on quarter and 20% year on year, which improved the funding mix. We continue to drive greater digital interactions, supporting a 41% cost income ratio in the quarter. We expect this progress to continue, reflecting sustainable improvements in returns. Q4 ROTE of 15.8% was supported by a one-off benefit, which I'll come to shortly. Adjusting for which, ROTE was 12.5%, and the full-year ROTE increased 190 basis points to 11%. In US dollars, Q4 income grew by 28% year on year, while costs were up 4%. NII increased 19%, reflecting stronger volumes and margins.

Retail deposits grew 5% quarter on quarter, and 20% year on year, which improve the funding mix.

And we continue to drive greater digital interactions supporting a 41% cost income ratio in the quarter. We expect this progress to continue reflecting sustainable improvements in returns.

Q4, <unk>, a 15, 8% was supported by a one off benefit which I'll come to shortly adjusting for which roti was 12.5%.

The full year, Rowsey increased 190 basis points to 11%.

In U S dollars Q4 income grew by 28% year on year loss costs were up 4%.

NII increased 19%, reflecting stronger volumes and margins.

Following a review of customer behavior, we have updated our assumptions to reflect more transacting versus revolving balances.

Anna Cross: Following a review of customer behavior, we have updated our assumptions to reflect more transacting versus revolving balances and longer duration customer relationships. This has allowed us to more precisely allocate partner rewards, which has two accounting effects. First, a one-off benefit, largely in non-NII of circa GBP 45 million in Q4. Second, an ongoing change in income mix, reducing non-NII by circa GBP 50 million from Q1, offset by a broadly equivalent increase in NII. Q1 NIM will be around 12.5%, with total income of circa GBP 950 million. There are considerable inorganic changes in the business in 2026. So to help with modeling, we have included some details in slide 96 in the appendix.

And longer duration customer relationships.

This has allowed us to more precisely allocate partner rewards, which has two accounting effects.

First a one off benefit largely in non NII.

NII of circa $45 million in Q4.

Second an ongoing change in income mix, reducing non NII by circa $50 million from Q1 offset by a broadly equivalent increase in NII.

Q1, NIM will be around 12.5% with total income of circa $950 million.

There are considerable in organic changes in the business in 2006, so to help with modeling. We have included some details in slide 96 in the appendix.

Following the sale of the a a portfolio in Q2, we expect NIM to rise to nearly 14% in half two.

Anna Cross: Following the sale of the AA portfolio in Q2, we expect NIM to rise to nearly 14% in H2, supporting a circa 12% ROTE in 2026 before the AA gain on sale. We ended the quarter with a CET1 ratio of 14.3%. This included 33 basis points of capital generation from profits. Given this strong capital position, we have announced a GBP 1 billion share buyback and a GBP 0.8 billion final dividend, equivalent to 5.6 pence per share. Looking ahead, we continue to expect between 19 and 26 billion of regulatory RWA inflation. Within this, the circa 16 billion effect of IRB migration in the US Consumer Bank remains our best estimate. Around 5 billion of that will now happen with the implementation of Basel 3.1 on 1 January 2027, with the remainder anticipated that year.

Supporting our circa 12% rote in 2006.

Before they a gain on sale.

We ended the quarter with a CET one ratio of 14, 3%.

This included 33 basis points of capital generation from profits.

Given the strong capital position, we have announced a $1 billion share buyback and a point 8 billion final dividend equivalent to five 6% pence per share.

Looking ahead, we continue to expect between 19 and 26 billion of regulatory <unk> inflation.

Within this the circa 16 billion effect of IRB migration in the U S consumer Bank remains our best estimate.

Around $5 billion of that will now happen with the implementation of Basel III. One on one January 27, with the remainder anticipated that yeah.

We expect a reduction in the Greek pillar two requirement following each of these changes.

Anna Cross: We expect a reduction in the group Pillar 2A requirement following each of these changes. We have been operating around the top of our 13 to 14% CET1 range, with the returns and distributions in the plan announced today based on that level. Post-implementation, we will consider where we operate across the range. More broadly, in the UK, we welcome the constructive tone in the recent FPC review of capital requirements, and we'll continue to engage closely with the Bank of England. Turning now to the RWA walk. Investment Bank RWAs decreased due to seasonality and accounted for 55% of group RWAs at the end of the year. The reduction in Barclays UK reflected a securitization in Q4 to manage risk on the balance sheet. As usual, a word on our overall liquidity and funding.

We have been operating around the top of our 13% to 14% CET one range with the returns and distributions in the plan announced today based on that level.

Post implementation, we will consider where we operate across the range.

More broadly in the U K, we welcome the constructive tone in the recent FTC review of capital requirements and we'll continue to engage closely with the bank of England.

Turning now to the odds of you a walk.

Investment bank out of your age decreased due to seasonality and accounted for 55% of grief ought to be raised at the end of the year.

The reduction in Barclays UK reflected a securitization in Q4 to manage risk on the balance sheet.

As usual a word on our overall liquidity and funding.

We have a strong and diverse funding base, including a 73% LDR and an NSF fall of 135%.

Anna Cross: We have a strong and diverse funding base, including a 73% LDR and an NSFR of 135%, and we are highly liquid across currencies with an LCR of 170%. These measures reflect purposeful and prudent management of our balance sheet, delivering resilience, and thus ensuring we have the capacity to support customers in a range of economic environments. TNAV per share increased GBP 0.17 in the quarter and GBP 0.52 year on year to GBP 4.09. Attributable profit added GBP 0.09 and GBP 0.43 per share, respectively. Movements in the cash flow hedge reserve added GBP 0.05 per share in the quarter, and we expect this to largely unwind by the end of 2026, adding around GBP 0.09 to TNAV.

And we are highly language across currencies with an LCR of 170%. These measures reflect purposeful and prudent management of our balance sheet delivering resilience.

And thus ensuring we have the capacity to support customers in a range of economic environments.

Tina per share increased 17 tenths in the quarter and 52 tenths year on year to 409 pence.

Attributable profit added nine pence, and 43 pence per share respectively.

Movements in the cash flow hedge reserve added five pence per share in the quarter and we expect this to largely unwind by the end of 'twenty six adding around nine pence to TNF.

To summarize we are pleased with the group's performance in the second year of our three year plan.

Anna Cross: To summarize, we are pleased with the group's performance in the second year of our three-year plan, having achieved all our targets and guidance. We now expect group income of GBP 31 billion in 2026, GBP 1 billion more than originally expected. And continued operational progress means we are more confident in delivering target ROTE greater than 12% in 2026. Venkat will now outline the next three years of the plan before I take you through the 2028 financial targets in more detail. Venkat, over to you.

Having achieved all our targets and guidance.

We now expect group income of 31 billion and 26 $1 billion more than originally expected.

And continued operational progress means we are more confident in delivering target rates greater than 12% and 26.

<unk> will now outline the next three years of the plan before I take you through the 28th financial targets in more detail bank over tea.

Right.

Thank you again Ana.

C.S. Venkatakrishnan: Right. Thank you again, Anna, and welcome back. Barclays is now on a journey to sustainably higher financial returns. I think of this journey as taking place in four stages. First, from 2021 to 2023, we stabilized the bank's financial profile, exercising capital discipline in the investment bank while starting to build out our areas of strength. Second, since the launch of our simpler, better, more balanced strategy in February 2024, we've positioned the bank for income growth and for higher returns. We have simplified our processes to drive efficiency, and we exited non-strategic businesses. We've invested in digital capabilities to create a better customer experience, and we've grown our highest returning UK businesses to create a more balanced Barclays with more stable returns. Today, we set out the third stage of this plan on the way to the fourth.

And welcome back.

Barclays is now on a journey to sustainably higher financial returns.

Think of this journey is taking place in four stages.

First from 'twenty to 'twenty, one to 'twenty three we stabilize the bank's financial profile exercising capital discipline in the investment bank, while starting to build out our areas of strength.

Second since the launch of our simpler better and more balanced strategy in February 24, we have positioned the bank for income growth and for higher returns.

We have simplified our processes to drive efficiency and we exited non strategic businesses.

We've invested in digital capabilities to create a better customer experience and.

And we've grown our highest returning U K businesses to create a more balanced Barclays with more stable returns.

Today, we set out the third stage of this plan on the way to the fourth.

In this third stage, we will build on the foundations. We have created so far to increase returns for the bank and to make them resilient across a range of environments.

C.S. Venkatakrishnan: In this third stage, we will build on the foundations we have created so far to increase returns for the bank and to make them resilient across a range of environments. Year by year, we are improving the profit signature of the bank. Stronger financial results create the capacity to invest, to secure sustainably higher returns. This is the fourth stage, and it extends beyond 2028. You know, two years ago, we presented a vision anchored in measured ambition and disciplined delivery. I said then, that we were building a potent set of businesses which were strong in themselves and mutually reinforcing. Our vision was harnessed to our home UK market, where we aimed to deepen our presence even as we engaged with the world from London. Our vision today is one of accelerating ambition, still anchored in disciplined delivery.

Year by year.

Improving the profit signature of the bank still.

Stronger financial results create the capacity to invest to secure sustainably higher returns.

This is the fourth stage and if it does.

<unk> beyond 2028.

Two years ago, we presented a vision anchored in measured ambition and disciplined delivery.

I said then that.

If we were building a potent set of businesses.

Which was strong in themselves and mutually reinforcing.

Our vision was harnessed to a home U K market.

We aimed to deepen our presence.

Even as we engaged with the world from London.

Our vision today is one of accelerating ambition.

Still anchored and disciplined delivery.

We will forward segment, leading operationally efficient businesses that are primed to support growth.

C.S. Venkatakrishnan: We will forge segment leading, operationally efficient businesses that are primed to support growth, and we will drive structurally deeper client relationships by connecting these businesses. We have more capacity to invest. We build upon a strong track record of delivery. Our drive is greater, and our commitment is unwavering. We will increase investments twofold to drive deep technological transformation and modernization of the bank. This includes embedding AI at scale across the group to deliver better products and services. And importantly, we will pursue our ambition while generating higher returns in each of the next three years. In 2028, we are targeting a return on tangible equity of greater than 14%, up from greater than 12% for 2026.

And we will drive structurally deeper client relationships by connecting these businesses.

We have more capacity to invest.

We build upon a strong track record of delivery.

Our drive is.

Greater and our commitment is unwavering.

We will increase investments twofold to drive deep technological transformation and modernization of the bank.

This includes embedding AI at scale across the group to deliver better products and services.

And importantly.

We will pursue our ambition, while generating higher returns in each of the next three years.

In 2028, we are targeting a return on tangible equity of greater than 14% up from greater than 12% for 2006.

Stronger capital generation will enable greater than 15 billion pounds of distributions.

C.S. Venkatakrishnan: Stronger capital generation will enable greater than GBP 15 billion of distributions across the period of 2026 to 2028, and this provides capacity for additional investment and growth beyond the level set out in the plan today. As we have done, we will exert considerable discipline over any investment, given the importance which we place on shareholder distributions. In 2026, we expect the investment bank to represent a mid-50s% of Group RWAs. This is above the initial target, and it reflects the postponement of previously anticipated regulatory changes. We expect this proportion to fall to about 50% by 2028, as we continue to maintain broadly stable RWAs in the investment bank and deploy more capital in our consumer and corporate businesses.

Across the period of 26 to 28.

And this provides capacity for additional investment and growth beyond the level set out in the plan today.

And as we have done we will exert considerable discipline over any investment.

Given the importance, which we place on shareholder distributions.

In 2026, we expect the investment bank to represent a mid 50% of group out of Louise.

This is above the initial target.

And it reflects the postponement of previously anticipated regulatory changes.

We expect this proportion to fall to about 50% by 2028 as we continue to maintain broadly stable <unk> in the investment bank and deploy more capital in our.

Consumer and corporate businesses.

We will continue to be guided by three goals and these are to make Barclays simpler to run it in a better way and to make it more balanced.

C.S. Venkatakrishnan: We will continue to be guided by three goals, and these are to make Barclays simpler, to run it in a better way, and to make it more balanced. Our journey began by creating a simpler business structure, organized and operating in a simpler way. It continued with the simplification of our processes and customer journeys to improve the quality of our service and to drive efficiency. In the next three years, we will be deploying digital capabilities and AI to further this progress. To harness these technologies successfully, we must standardize our data, we must modernize our approaches, and we must harmonize systems and processes. Delivering in this manner will not only enable greater productivity; it will improve our operational resilience, our reliability, and security. And importantly, and I'll come back to this, it will create a fulfilling working environment for our colleagues.

Yeah.

Our journey began by creating a simpler business structure organized and operating in a simpler way.

It continued with the simplification of our processes and customer journeys to improve the quality of our service and to drive efficiency.

In the next three years we.

We will be deploying digital capabilities in AI to further this progress.

To harness these technologies successfully we must standardize our data we must modernize our approaches and we must harmonized systems and processes.

Delivering in this manner will not only enable greater productivity it will improve our operational resilience reliability and security.

And importantly.

And I'll come back to this it will create a fulfilling working environment for our colleagues.

You know for some time know technology has revolved around our businesses.

Now our businesses are revolving around technology.

C.S. Venkatakrishnan: You know, for some time now, technology has revolved around our businesses. Now, our businesses are revolving around technology. Customer interactions in the US Consumer Bank are almost entirely digital today. Elsewhere in the group, we've made significant progress to build easy-to-use customer-facing platforms, and we'll continue on that journey. By 2028, we will deliver a simpler but more sophisticated suite of products and AI-enabled services. So how are we doing this? Our transformation is built on three pillars: cloud computing, data platforms, and AI adoption. To date, we've made the most progress in employing cloud computing, built on scalable and robust infrastructure. We are one of the leading adopters in the sector, with 89% of applications on the cloud, versus 75% two years ago. And this platform provides greater stability and faster product deployment. We are also migrating core data onto a standardized platform.

Customer interactions in the U S consumer bank are almost entirely digital today.

We're in the group, we have made significant progress to build easy to use customer facing platforms and we will continue on that journey.

By 2028, we will deliver a simpler but more sophisticated suite of products and AI enabled services.

So how are we doing this.

Our transformation is built on three pillars.

Computing data platforms and AI adoption.

To date, we've made the most progress in employing cloud computing built on scalable and robust infrastructure.

We are one of the leading adopters in this sector with 89% of applications on the cloud versus 75% two years ago.

And this platform provides greater stability and foster product deployment.

We're also migrating core data onto a standardized platform.

It helps us to provide personalized services for our customers and to implement models more rapidly.

C.S. Venkatakrishnan: This helps us to provide personalized services for our customers and to implement models more rapidly. By building on these modular foundations, we can accelerate the development, testing, and deployment of code and models. With cloud infrastructure and data platforms in place, we are now able to deploy AI at scale. Across the group, we have more than 250 AI tools and models in use, and by 2028, we expect more than half of our customer journeys in the US Consumer Bank to be digitally personalized. Technology is creating a more stimulating working environment for our colleagues, who are at the heart of these developments. Let me share some examples. You know, in the past two years, we've held a number of AI hackathons, where employees prototype quick solutions to existing business problems.

And by building on these modular foundations, we can accelerate the development testing and deployment of code and models.

So with cloud infrastructure and data platforms in place, we are now able to deploy AI at scale.

Across the group, we have more than 250, AI tools and models and use and.

And by 2028, we expect more than half of our customer journeys in the U S consumer bank to be digitally personalized.

Technology is creating a more stimulating working environment for our colleagues who are at the heart of these developments and let me share some examples.

You know in the past two years, we've held a number of AI Hackathons, where employees prototype quick solutions to existing business problems.

Every time I visit a hackathon, including one just two weeks ago.

I'm overwhelmed by the seemingly limitless ambition and inventiveness of our colleagues.

C.S. Venkatakrishnan: Every time I visit a hackathon, including one just two weeks ago, I'm overwhelmed by the seemingly limitless ambition and inventiveness of our colleagues. Their winning ideas translate into actual projects and actual products. This includes an AI chatbot that we recently launched for FX trading. We call it BoxBot, and this tool delivers FX quotes 75% faster than the previous approach. It is driving better execution for our traders and swifter service for our clients. In the US Consumer Bank, we are launching a conversational AI tool in our app. This accelerates customer query responses by 95% and enables more personalized service. We've also built the infrastructure and provided colleagues with tools to drive greater efficiency and productivity. In doing so, we enable them to perform in the economy of the future.

And they are winning ideas translate into actual projects and actual products.

This includes an AI chatbot that we recently launched for FX trading we call It box board.

And this tool delivers FX codes, 75% faster than the previous approach.

It is driving better execution for our traders and swifter service for our clients.

In the U S consumer bank, we are launching a conversational AI tool in our App.

This accelerated customer quality responses by 95%.

And enables more personalized service.

We've also built the infrastructure and provided colleagues with tools to drive greater efficiency and productivity.

In doing so.

We enable them to perform and the economy of the future.

The rollout of get lab to 19000 developers means we are now able to implement code, 15% faster and.

C.S. Venkatakrishnan: The rollout of GitLab to 19,000 developers means we are now able to implement code 15% faster, and we are one of the largest users of Microsoft Copilot in the financial services industry, with around 90% of our colleagues on the system. In 2025 alone, this saved our teams more than 1 million hours of work. You know, so far I've spoken about improvements in the way we engage with clients and how they engage with us. I want Barclays to be renowned for operational performance, excellent operational performance. And to me, operational performance and financial success are two sides of the same coin. With three-quarters of our colleagues engaged in operating the bank, simpler operations can improve efficiency materially. So let me just highlight two examples to bring this to life.

And we are one of the largest users of Microsoft co pilots in the financial services industry, we're around 90% of our colleagues on the system.

In 2025 alone this saved our teams more than 1 million hours of work.

So far I've spoken about improvements in the way, we engage with clients and how they engage with us.

I want Barclays to be known for operational performance excellent operational performance.

And to me.

Operational performance and financial success are two sides of the same coin.

With three quarters of our colleagues engaged in operating the bank simpler operations can improve efficiency materially.

So let me just highlight two examples to bring this to life.

And finance in Algeria, we are simplifying our accounting platforms moving from 11% to three sub ledgers within the trading book.

C.S. Venkatakrishnan: In finance, Anna's area, we are simplifying our accounting platforms, moving from 11 to 3 subledgers within the trading book, and this will lead to fewer manual reconciliations, faster reporting, and more efficient data analysis. On the risk side, close to my own heart, our wholesale credit risk systems remain overly manual, and so we are rebuilding the architecture and using AI to aggregate and analyze data and generate reports. This supports fast and accurate credit decisions. Just so to summarize, the simpler Barclays is both well-organized and well-run for colleagues and customers alike. At the beating heart of this is a standardized infrastructure supporting harmonized processes and enabling modern approaches to product development and delivery. It's powered and curated by our talented and inventive colleagues. Moving to better.

And this will lead to fewer manual reconciliations foster reporting and more efficient data analysis.

On the risk side close to my own heart.

Our wholesale credit risk systems remain overly menu and so we are rebuilding the architecture and using AI to aggregate and analyze data and generate reports.

This supports fast and accurate credit decisions.

To sort of summarize.

The simpler Barclays is both well organized and well run for colleagues and customers alike.

And at the beating heart of this.

Is a standardized infrastructure supporting harmonized processes, and enabling modern approaches to product development and delivery.

And it's powered and curated.

By our talented and inventive colleagues.

Moving to better.

Having a simpler business means we can focus on delivering better service for our customers and this results in improved returns for our shareholders.

C.S. Venkatakrishnan: Having a simpler business means we can focus on delivering better service for our customers, and this results in improved returns for our shareholders. In this next stage, we are building a better bank by forging segment-leading businesses and deepening client relationships. Just one second. To me, segment leadership is built on two pillars: best-in-class offerings and deep client relationships. And, you know, we begin from a strong position. We are the largest non-US investment bank, with deep expertise in fixed income and financing markets. We are a leading UK retail bank with an established and growing private bank and wealth management business. And our US consumer bank is highly sought-- is a highly sought-after partner for customers and corporate clients alike. The second pillar of segment leadership is combining the strengths of our products in each business and our capabilities across businesses.

In this next stage, we are building a better bank by forging segment, leading businesses and deepening client relationships.

Just one second.

To me segment leadership is built on two pillars.

Best in class offerings, and deep client relationships.

And we begin from a strong position.

We are the largest non U S investment bank with deep expertise in fixed income and financing markets.

We're a leading UK retail bank with an established and growing private banking wealth management business.

And our U S. Consumer bank is highly sought as a highly sought after partner for customers and corporate clients alike.

The second pillar of segment leadership is combining the strengths of our products in each business and.

And our capabilities across businesses.

In doing so we create deeper client relationships.

And there is significant potential to increase connections between Barclays UK and the private bank and wealth management.

C.S. Venkatakrishnan: In doing so, we create deeper client relationships, and there is significant potential to increase connections between Barclays UK and the private bank and wealth management through our premier proposition. The acquisition of Best Egg in the US allows us to bring market-leading digital lending capabilities to our credit card partners. As the only UK bank with UK investment bank, we bring a unique global reach and sophisticated capabilities to our UK corporate clients. By investing to strengthen these connections, we make each business individually stronger, and by forging connections across the group, we will unlock sources, new sources of fee growth beyond 2028. Let me share how I think about this, and I'll start with the investment bank. As I said, Barclays is the leading non-US investment bank.

Through our premier proposition.

The acquisition of best Tag in the U S allows us to bring market, leading digital lending capabilities to our credit card partners.

And as the only U K bank.

Okay investment bank.

We bring a unique global reach and sophisticated capabilities to our U K corporate clients.

But by investing to strengthen these connections we make each business individually stronger.

And by forging connections across the group.

We'll unlock sources new sources of fee growth beyond 2028.

So let me share how I think about this and I'll start with the investment bank.

As I said Barclays as the leading non U S investment bank.

We have UK domiciled.

But we actually look more American and European with 50% to 60% of our revenues coming in the U S.

C.S. Venkatakrishnan: We are UK domiciled, but we actually look more American than European, with 50 to 60% of our revenues coming in the US. The investment bank has built a diverse and stable income mix. Two years ago, when I stood in front of you, I said that improving the investment bank was the hardest part of our plan. So what have we done and how have we done it? At that time, we had asked our business to do four things. First, to leverage further the traditional areas of strength. And for a long time, fixed income has been the calling card of Barclays. This is true in trading, financing, debt capital markets. And in markets, we identified three focus businesses where we plan to grow income by gaining share: European rates, equity derivatives, and securitized products.

The investment bank has built a diverse and stable income mix.

Two years ago, when I stood in front of your.

I said that improving the investment bank was the hardest part of our plan.

So what have we done and how have we done it.

At that time, we had also a business to do four things.

First to leverage further the traditional areas of strength.

And for a long time fixed income has been the calling card of Barclays. This is true in trading financing debt capital markets.

And in markets, we identified three focused businesses, where we plan to grow income by gaining share.

Our appeal rates equity derivatives and securitized products.

We've made good progress gaining share by about 150 basis points between 2023 in the first half of 2025.

C.S. Venkatakrishnan: We've made good progress, gaining share by about 150 basis points between 2023 and the first half of 2025. We have also leveraged our historical strength in fixed income financing to grow in prime. My second ask was to drive greater capital productivity. The business has consistently increased return on RWAs. Now we will build on those successes. The third request was to increase fee share. The bankers who we hired in 2023 and 2024 have become more productive. Early results are good, but there is more to do, and so we will continue to invest and realize the full benefits of this investment over time. The final ask was to deepen relationships in the international corporate bank, and here we've made strong progress, rolling out what we call our treasury coverage model, beyond the 1,500 top clients of the bank.

We have also leveraged our historical strength in fixed income financing to grow in prime.

My second ask was to drive greater capital productivity.

The business has consistently increased return on <unk>.

Now we will build on those successes.

The third request was to increase Fisher.

The bankers, who we hired in 2023 and 2024 have become more productive.

Early results are good but there is more to do and so we will continue to invest and realize the full benefits of this investment overtime.

The final ask was.

As to deepen relationships in the international corporate Bank.

And here, we have made strong progress rolling out what we call our treasury coverage model beyond 2500 top clients of the bank.

And then the next three years, we will leverage strong transaction banking from capabilities from the U K corporate bank and build on existing debt capital market strengths.

C.S. Venkatakrishnan: In the next three years, we will leverage strong transaction banking from capabilities from the UK Corporate Bank and build on existing debt capital market strengths. We will be providing a more complete service to global corporates, and in doing so, we expect the international corporate bank to become a larger part of the investment bank by 2028. This will remain an important source of fee growth beyond 2028, and I will discuss this later. Turning to Barclays UK. Barclays aims to be the premier bank for all UK customers. We have a strong customer base, including around 1.1 million, what we call mass affluent customers in Barclays UK. Our premier proposition provides exclusive rewards and priority service for this cohort, but only 50% of eligible customers have a premier account. This provides a material opportunity to increase engagement.

We will be providing a more complete service to global corporates and.

And in doing so we expect the Internet International corporate bank to become a larger part of the investment bank by 2028.

And this will remain an important source of fee growth beyond 2028.

And while I will discuss this later.

Turning to Barclays UK.

Barclays aims to be the Premier bank for all U K customers.

We have a strong customer base, including around $1 1 million, what we call mass affluent customers and Barclays UK.

Our premier proposition provides exclusive rewards and priority service for this cohort.

But only 50% of eligible customers have a premier account.

This provides a material opportunity to increase engagement.

Investments to improve our service has raised NPS scores among premier customers.

C.S. Venkatakrishnan: Investment to improve our service has raised NPS scores among premier customers, and we plan to enhance our offering further by expanding the product range and rewards. We can also support this segment's investment needs more fully, and we will achieve this by strengthening connections between Barclays UK and private bank and wealth management. Within Barclays UK, we have identified 400,000 customers who could benefit from financial advice. In 2025 alone, we onboarded 65,000 customers to Barclays Direct Investing, which is the new name for our digital self-investment platform. And in 2026, we will launch Premier Wealth Management to provide planning and advice to premier customers. This will be human-led, but digitally enabled, fairly priced, transparently constructed, and clearly disclosed. Turning now to the US Consumer Bank. You know, our leading digital US consumer bank is delivering strong growth and customer engagement.

And we plan to enhance our offering further by expanding the product range and rewards.

We can also support the segment's investment needs more fully.

And we will achieve this by strengthening connections between Barclays UK and private bank and wealth management.

Within Barclays U K, we have identified 400000 customers, who could benefit from financial advice.

In 2025 alone we on boarded 65000 customers to Barclays direct investing which is the new name for our digital self investment platform.

And in 2026, we will launch a premier wealth management to provide planning and advice to premier customers.

This will be human led.

With digitally enabled.

Early priced transparently constructed and clearly disclosed.

Yeah.

Turning now to the U S consumer bank.

Our leading digital U S consumer bank is delivering strong growth and customer engagement.

Our focused partnership business was among the top four top four fastest growing credit card businesses and 16 of the last 20 quarters.

C.S. Venkatakrishnan: Our focus partnership business was among the top four top four fastest-growing credit card businesses in 16 of the last 20 quarters. Since 2023, we have achieved a 12% organic growth in receivables. By driving growth and customer engagement in this way, we are retaining existing card partners and attracting new ones. Last year, we renewed partnerships with Upromise, Carnival, and Wyndham Hotels, and we successfully integrated General Motors. Operational progress in the US Consumer Bank is also driving higher returns for Barclays. We will continue to use our digital deposit capabilities. In fact, the launch of a tiered savings product in 2024 has enabled 34% retail deposit growth, with the cost of this funding being about 50 basis points below the funding it replaced. In doing so, we support the broader banking needs of our card customers.

And since 2023, we have achieved a 12% organic growth in receivables.

By driving growth and customer engagement in this way, we are retaining existing card partners and attracting new ones.

Last year, we renewed partnerships with you promise carnival and Wyndham hotels.

And we successfully integrated general Motors.

Operational progress in the U S. Consumer Bank is also driving higher returns for Barclays.

We will continue to use our digital deposit capabilities.

In fact, the launch of a tiered savings product in 2024 has enabled 34% retail deposit growth with the cost of this funding being about 50 basis points below the funding it replaced.

And in doing so we support the broader banking needs of our card customers.

The acquisition of best Tag in the second quarter of 2006.

We'll further expand the breadth of our digital capabilities.

C.S. Venkatakrishnan: The acquisition of Best Egg in Q2 2026 will further expand the breadth of our digital capabilities. Around 90% of Best Egg's consumer loan originations come through digital channels, including online aggregators. Best Egg's strong capabilities enable flexible product design to suit a range of customer needs. We will leverage these capabilities to accelerate growth, including through closer integration with our card partners. So as you can see, the US Consumer Bank is more than just a cards business. I strongly believe that happy and satisfied customers are the sine qua non of any enterprise. We aim to improve customer service by investing in it deeply, making it a point of ambition and pride. As I said earlier, operational excellence and financial success are two sides of the same coin. I see them as the same.

Around 90% of best eggs.

Consumer loan originations come through digital channels, including online Aggregators.

And <unk> strong capabilities and enable flexible product design to suit a range of customer needs.

We will leverage these capabilities to accelerate growth, including through closer integration with our card partners.

So as you can see the U S consumer bank is more than just a cards business.

I strongly believe that happy and satisfied customers are the <unk> of <unk>.

Any enterprise.

We aim to improve customer service by investing in a deeply.

Looking at a point of ambition and pride.

And as I said earlier operational excellence and financial success are two sides of the same coin.

<unk> of them is the same.

In Barclays UK last year, we launched a new platform to improve materially the speed of more applications for more than 26000 mortgage brokers.

C.S. Venkatakrishnan: In Barclays UK last year, we launched a new platform to improve materially the speed of more applications for more than 26,000 mortgage brokers. Digital adoption in the US Consumer Bank is already higher than in any of our divisions, and as I said, we are deploying AI tools to improve personalization further and ease of use. We are also making it easier for customers to come to Barclays, including in the private bank and wealth management division. Our digital platforms are a critical part of providing a superb experience to deepen customer engagement. This year, we will relaunch the Barclays app to deliver more personalized support through digital channels. Even as we emphasize digital engagement, customers sometimes value the quality and depth of engaging with us in person, especially with complex issues and in important life moments. So we will look to enhance and expand our branch footprint.

Digital adoption in the U S consumer bank is already higher than any of our divisions.

And as I said, we are deploying AI tools to improve personalization further and ease of use.

We're also making it easier for customers to come to Barclays, including in the private bank and wealth management Division.

Our digital platforms are a critical part of providing a superb experience to deepen customer engagement.

This year.

We will relaunch the barclays' app to deliver more personalized support through digital channels.

Even as we emphasize digitally engaged.

Customers, sometimes value the quality and depth of engaging with us in person.

Especially with complex issues and an important life moments.

So we will look to enhance and expand our branch footprint.

This will enable us to tailor our services to meet the changing preferences of our customers.

C.S. Venkatakrishnan: This will enable us to tailor our services to meet the changing preferences of our customers. In the US Consumer Bank, we are leveraging our capabilities across cards, deposits, and loans to drive even greater customer engagement. The secret sauce in our investment bank is in our synergies, which we use to deepen client relationships. We are big enough to offer multiple sophisticated products to our clients, and we have the nimbleness and the cultural drive to customize delivery and create tailored solutions. We now rank top five with 62 of our top 100 markets clients. This is up from 30 in 2021, 49 in 2023, and we are on track of our target of 70 in 2026. Our leading fixed income and prime equity financing products are integrated on single platform.

And in the U S consumer bank, we are leveraging our capabilities across cards deposits and loans to drive even greater customer engagement.

The secret sauce in our investment bank is in our synergies, which we use to deepen client relationships.

We are big enough to offer multiple sophisticated products to our clients and we have the nimbleness and the cultural drive to customize delivery and create tailored solutions.

Now ranked top five with 62 of our top 100 markets clients.

This is up from $13 21, 49 in 'twenty three and we are on track of our target of 70% in 2026.

Our leading fixed income and prime equity financing products are integrated on a single platform.

Operating in this way provides a single view of risk both for the client and for Barclays.

C.S. Venkatakrishnan: Operating in this way provides a single view of risk, both for the client and for Barclays. Of our top 100 markets clients, 97 are also financing clients. By continuing to leverage our integrated financing platform, we do two things: first, we build a stronger foundation of stable income, which supports returns in a range of environments. And second, we deepen relationships and drive greater engagement across the entire investment bank, including in intermediation. Over the next 3 years, we will bring together our investment banking and transaction banking strengths to accelerate growth in the international corporate bank. We are the top sterling clearing bank. We have a comprehensive suite of products and differentiated payment strength.

And if our top 100 markets clients 97 are also financing clients.

So by continuing to leverage our integrated financing platform, we do two things first.

Build a stronger foundation of stable income, which supports returns in a range of environments and.

And second with deepen relationships and drive greater engagement across the into investment bank, including an intermediation.

So over the next three years, we will bring together our investment banking and transaction banking strengths.

To accelerate growth in the international corporate Bank we.

We are a top sterling clearing bank, we have a comprehensive suite of products and differentiated payment strength.

By replicating some of these capabilities in the U S.

We have already driven a circa 140% growth in dollar deposits since 2023.

C.S. Venkatakrishnan: By replicating some of these capabilities in the US, we have already driven a circa 140% growth in dollar deposits since 2023, and we plan to leverage this strength in other products through simple but complete digital channels. In Europe, we will also extend the reach of our existing product suite from 9 to 15 countries to provide a more complete client coverage. We are also creating a better client experience to support this growth. So by the end of this Q1 of this year, all UK corporate clients will be enabled on an enhanced platform that we call iPortal. This combines 5 previously separate platforms for corporate banking into one, and in doing so, we make it easier for clients to access a broader range of products.

And we plan to leverage the strength in other products through.

Through simple, but complete digital channels.

In Europe, we will also extend the reach of our suite of existing product suite from 9% to 15 countries.

To provide a more complete client coverage.

We're also creating a better client experience to support this growth.

So by the end of the first quarter of this year, all UK corporate clients will be enabled on an enhanced platform that we call <unk>.

This combines five previously separate platforms for corporate banking into one.

And in doing so we make it easier for clients to access a broader range of products.

Across the banking system technology is not just affecting how we do business. It's also affecting what business we do.

C.S. Venkatakrishnan: You know, across the banking system, technology is not just affecting how we do business, it's also affecting what business we do. And nowhere is this likely to be greater than in new asset types and new payment methods. We are deeply engaged in understanding the role that digital assets will play in meeting the future needs of our clients. We are developing our own tokenized deposits to increase the speed and simplicity of transactions, and we are testing retail and wholesale use cases, including for corporate bond issuance and investment. We have been structurally improving the profit signature of Barclays, and we are doing it in two ways. First, by changing the mix of the group, by growing our highest returning UK businesses, and I'm pleased with our progress, having grown these businesses from 30% of Group RWA to 34% in the last two years.

And nowhere is this likely to be greater than in new asset types and new payment methods.

We are deeply engaged in understanding the role that digital assets will play in meeting the future needs of our clients.

We are developing our own to organize deposits to increase the speed and simplicity of transactions.

And we are testing retail and wholesale used cases, including for corporate bond issuance in investment.

We have been structurally improving the profit signature of Barclays and we're doing it in two ways first by changing the mix of the group by growing our highest returning UK businesses.

And I am pleased with our progress having grown these businesses from 30% of group or <unk> to 34% in the last two years.

We are also now expect higher returns in Barclays UK.

We will continue this progress increasing lending by more than 5% annually, while generating an <unk> greater than 20% across the three U K businesses.

C.S. Venkatakrishnan: We are also now expecting higher returns in Barclays UK. We will continue this progress, increasing lending by more than 5% annually, while generating an ROTE greater than 20% across the three UK businesses. Second, we said we would strengthen returns in the lower returning divisions. The US Consumer Bank ROTE has increased from 4% in 2023 to 11% in 2025, in all the ways I described to you, and we expect this to build to mid-teens while absorbing regulatory RWA headwinds. You know, when I stood in front of you two years ago, I said we would increase returns in the investment bank by improving productivity on a stable RWA base, and I'm very pleased with the progress to date. IB ROTE is up from 7% to 11% in two years, but we have more work to do.

Second.

We said, we would strengthen returns in the lower returning divisions.

The U S consumer bank, our LTE has increased from 4% in 2023% to 11% in 2025 and all the way as I described to you and.

And we expect this to build to mid teens, while absorbing regulatory <unk> headwinds.

And you know when I stood in front of you two years ago. I said, we would increase returns in the investment bank by improving productivity on a stable <unk> base and I am very pleased with the progress to date.

<unk> is up from 7% to 11% in two years.

But we have more work to do.

With greater visibility one year out to the end of 2006, we expect the investment banks to generate circa 12% already this year and by 2028, we expect this to rise to more than 13%.

C.S. Venkatakrishnan: With greater visibility one year out to the end of 2026, we expect the investment banks to generate circa 12% ROTE this year, and by 2028, we expect this to rise to more than 13%. Let me be very clear, we remain ambitious for this business and for the returns it should be generating, and importantly, this should be done on a sustainable basis. More broadly, the ongoing change in the mix of RWAs across the group means that we are relying less on the IB to drive improvements in group ROTE. This is exactly as it should be. In summary, the better Barclays will continue to show higher returns and will also be built on segment-leading businesses, which offer the best in client service and experience. Our third goal is to create a more balanced Barclays.

Let me be very clear.

We remain ambitious for this business and for the routines returns that should be generating.

And importantly, this should be done on a sustainable basis.

More broadly though.

Ongoing change in the mix of our <unk> across the group means that we are relying less on the IV.

To drive improvements in group our OTT.

This is exactly as it should be.

In summary.

The better Barclays will continue to show higher returns.

And it will also be built on segment leading businesses.

Which offer the best in client service and experience.

Yeah.

Our third goal is to create a more balanced Barclays.

We will continue to maintain capital discipline and the investment bank.

Growing parts of the retail and corporate businesses.

C.S. Venkatakrishnan: We will continue to maintain capital discipline in the investment bank while growing parts of the retail and corporate businesses. But being balanced, being more balanced also means growing new sources of fee income beyond 2028. Two years ago, I said that every global bank had to be strong at home. We've been a UK-centered bank for more than three centuries, and it remains a great place in which to do business and from which to do business. The economy is resilient, the legal and regulatory environment is both strong and trusted, and we remain committed to investing and growing in this, our home market. Our investment will focus on diversifying sources of NII beyond deposit income, and we will increase UK lending in two main ways. First, we will leverage strong multi-brand offerings to reach new customers.

But being balanced being more balanced also means growing new sources of fee income beyond 2028.

Two years ago.

Said that every global bank had to be strong at home.

We've been a UK centered bank for more than three centuries.

And it remains a great place in which to do business and from which to do business there.

The economy is resilient.

Our legal and regulatory environment is both strong and trusted.

And we remain committed to investing and growing in this our home market.

Our investment will focus on diversifying sources of NII beyond deposit income.

And we will increase U K lending in two main ways.

First.

We will leverage strong multi brand offerings to reach new customers.

For instance, the acquisition of Kensington in 2023 enabled us to provide mortgages to more complex borrowers.

C.S. Venkatakrishnan: You know, for instance, the acquisition of Kensington in 2023 enabled us to provide mortgages to more complex borrowers. And the acquisition of Tesco Bank added significant scale in unsecured and open market capabilities and personal loans. Second, investment into the business is supporting growth by simplifying and improving customer journeys, as I discussed earlier. We are encouraged by progress in the UK corporate bank and expect momentum in core business banking, core business banking lending to build in 2026. Importantly, we expect to grow UK lending by more than 5% annually in the next three years, above the growth in nominal GDP. And we will do this by continuing to grow in segments where we were underrepresented and by leveraging our expanded product range and capabilities... We will invest to support growth.

And the acquisition of Tesco Bank added significant scale in unsecured and open market capabilities in personal loans.

Second.

Investment into the business is supporting growth by simplifying and improving customer journeys as I discussed earlier.

We are encouraged by progress in the UK corporate bank and expect momentum in core business banking.

Business banking lending to build in 2026.

Importantly, we expect to grow UK lending by more than 5% annually in the next three years above the growth in nominal GDP.

And we will do this by continuing to grow in segments, where we were underrepresented and by leveraging our expanding product expanded product range and capabilities.

We will invest to support growth in the next three years, we plan to more than double investment to support growth and efficiency.

C.S. Venkatakrishnan: In the next three years, we plan to more than double investment to support growth and efficiency compared to the previous three years. We will accelerate the adoption of digital technologies and AI across the group. Investments in the next three years will be substantially more weighted towards new sources of fee income growth beyond 2028. Through these investments, we will continue to develop best-in-class offerings, which is the first pillar of segment leadership. As I've said, we will also build connections across our business, and this is the second pillar of segment leadership. In the UK, new capabilities will support customers across the wealth continuum. We will leverage UK transaction banking strength in the International Corporate Bank. Best Egg will enable us to originate assets directly for investors in our leading US asset-backed securities business in the Investment Bank.

Third to the previous three years.

We will accelerate the adoption of digital technologies in the AI across the group.

And investments in the next three years will be substantially more weighted towards new sources of fee income growth beyond 2028.

Through these investments we will continue to develop best in class offerings.

It is the first pillar our segment leadership.

As I've said, we will also build connections across our business and this is the second pillar the segment leadership.

In the U K, new capabilities will support customers across the wealth continuum.

We will leverage UK transaction banking strength in the international corporate Bank.

And best egg.

Enable us to originate assets directly for investors and a leading U S asset backed securities business in the investment bank.

So as we move beyond 2028, we expect more of our growth to come from fee income versus net interest income.

C.S. Venkatakrishnan: So as we move beyond 2028, we expect more of our growth to come from fee income versus net interest income. And by building more diverse sources of revenue this way, we support more resilient returns, and we position ourselves better to navigate a range of environments. So changes in the operating environment globally present both risk and opportunities for large global banks like Barclays, and we look to manage this in three ways. First, by building strong customer businesses, diversified by geography, customer, product, and income type. Second, by deepening client relationships across products and where appropriate, across business segments. And third, through diligent management of economic, financial, operational, and technological risks. AI, for example, is a transformative opportunity which contains risks that need to be managed. And so to harness the technology successfully, we are standardizing our data, modernizing our infrastructure, and harmonizing our business processes.

And by building more diverse sources of revenue this way, we support more resilient returns.

And we position ourselves better to navigate a range of environments.

So changes in the operating environment globally presents both risks and opportunities for large global banks like Barclays.

And we look to manage this in three ways.

First by.

By building strong customer businesses diversified by geography customer product and income tax.

Second.

By deepening client relationships across products, and where appropriate across business segments.

And third through diligent management of economic financial operational and technological risks.

AI for example, as a transformative opportunity which contains risks that needs to be managed.

And so to harness the technology successfully.

We're standardizing our data modernizing our infrastructure and harmonizing our business processes.

By approaching risks and opportunities in this way, we aim to deliver consistently for our customers with strong operational performance.

C.S. Venkatakrishnan: By approaching risk and opportunities in this way, we aim to deliver consistently for our customers with strong operational performance. This, in turn, will generate resilient financial performance in a range of environments for our shareholders. So to bring this all together, progress in the past 2 years provides a solid foundation for the next phase of our journey, and we are confident in the path to 2028. We're moving from a period of measured ambition to one of accelerating ambition. Now I'm going to pass it over to Anna to take you through the financial details of the plan. Anna?

And this in turn will generate resilient financial performance in a range of environments for our shareholders.

So to bring this altogether.

Progress in the past two years provides a solid foundation for the next phase of our journey.

And we are confident in the path to 2028.

We're moving from a period of measured ambition.

Two one of accelerating ambition.

And now I'm going to pass it over to Anna to take you through the financial details of the plan.

Okay.

Our confidence in the plan that Venkat has outlined reflect three factors.

First we plan on realistic assumptions that part delivery in our control.

Anna Cross: Our confidence in the plan that Venkat has outlined reflects three factors. First, we plan on realistic assumptions that put delivery in our control. Second, the plan includes a significant increase in discretionary investment to support our future growth. And in doing so, we are intentionally prioritizing sustainably higher, longer-term returns over stronger, shorter-term ROTE. And third, that delivery is grounded in existing momentum. For example, target income CAGR of more than 5% compares to 7% delivered since 2023, as you can see on the top row. Planned UK lending of more than 5% is in line with the momentum we've seen in 2025. And we expect investment banking income to RWAs to increase by more than 40 basis points to greater than 7%, having increased 110 basis points in the last two years.

Second the plan includes a significant increase in discretionary investment to support our future growth.

And in doing so we are intentionally prioritizing sustainably higher longer term returns.

If a show stronger shorter term rates.

And third that delivery is grounded in existing momentum for example.

Targa income CAG out of more than 5% compares to 7% delivered since 2003 as you can see on the top right.

Planned UK lending of more than 5% is in line with the momentum we've seen in 'twenty five.

And we expect investment banking income to RGB ways to increase by more than 40 basis points to greater than 7%, having increased 110 basis points in the last two years.

Our planning assumption is for a low single digit IP income <unk> 25 to 28.

Anna Cross: Our planning assumption is for a low single digit IB income CAGR, 25 to 28, versus 9% achieved so far, and I'll come back to this in more detail. The low 50s target cost-income ratio in 28 represents more of a step change, but we are confident in delivering this, underpinned by circa GBP 2 billion of gross cost efficiency savings over the next 3 years. This compares to GBP 1.7 billion achieved in the last 2, and I will also come back to this topic in more detail later. Stable income streams in the retail and corporate businesses will materially drive income growth and ROTE in the next 3 years. We expect modest cost growth, supported by planned efficiency savings and normalization of the elevated cost base in 25.

<unk>, 9% achieved so far and I'll come back to this in more detail.

The life safety target cost income ratio and <unk> represents more of a step change.

We are confident in delivering less.

Underpinned by circa $2 billion of gross cost efficiency savings over the next two years.

This compares to $1 7 billion achieved in the last 10.

And I will also come back to this topic in more detail later.

Stable income streams in our retail and corporate businesses will materially drive income growth in writing in the next three years.

We expect modest cost price supported by planned efficiency savings a normalization of the elevated cost base in 'twenty five.

This combination will deliver positive cost shows in every year of the plan, yielding a life <unk> group cost income ratio by 2008.

Anna Cross: This combination will deliver positive cost synergies in every year of the plan, yielding a low fifties group cost-income ratio by 2028. So what drives income from here? As I said, in the past two years, the group has delivered a 7% income CAGR. This mainly reflected management actions, but the environment has also been favorable, reflected in upgraded 2026 income guidance of circa £31 billion. As a planning matter to 2028, we do not assume similar tailwinds in rates or in investment banking wallet growth, so we expect income CAGR to moderate to more than 5% in the next three years. Most growth comes from Group NII, excluding the IB and head office, which has grown 8% annually since 2023.

So what drives the income from here.

As I said in the past two years the group has delivered a 7% income CAGR.

This mainly reflects management actions, but the environment has offsetting favorable reflected an upgraded 2026 income guidance.

Circa 31 billion.

As a planning matter to 2008, we do not assume similar tailwind in rates or an investment banking wallet growth. So we expect income CAG item moderate to more than 5% in the next three years.

Nice growth comes from great to NII.

Excluding the IP and head office, which has grown 8% annually since 2003.

This reflects the UK lending <unk> target of greater than 5% and the stability of our deposit franchises, which underpins the structural hedge.

Anna Cross: This reflects the UK lending CAGR target of greater than 5% and the stability of our deposit franchises, which underpins the structural hedge. But it also reflects progress outside of the UK in USCB, where balance growth and NIM expansion supported 11% year-on-year NII growth in 2025. In 2026, we expect group NII to increase at least to at least GBP 13.5 billion, up from GBP 12.8 billion in 2025, and for Barclays UK NII to increase to between GBP 8.1 and 8.3 billion. Relative to our previous plan, the investment bank contributes relatively less against a flat wallet assumption. Over time, we do expect the mix of our income growth to pivot more towards asset-based NII and fees versus deposit income. That's why we remain very focused on diversifying sources of NII beyond deposit income by continuing to grow lending.

But it also reflects progress outside of the U K and U S. C. D. We're balanced growth and NIM expansion supported 11% year on year NII growth in 2005.

In 2006, we expect NII to increase at least to at least 13 and a half billion up from $12 8 billion in 2005 and for Barclays UK NII to increase to between eight one and $8 3 billion.

Relative to our previous plan the investment bank contributes relatively less against a flat assumption.

Over time, we do expect the mix of our income growth.

More towards asset based NII and fees versus deposit income.

It's why we remain very focused on diversifying sources of NII beyond deposit income by continuing to grow our lending.

But for the next three years, the structural hedge alone, we'll deliver 50% of planned income growth.

Anna Cross: But for the next three years, the structural hedge alone will deliver 50% of planned income growth. We have already locked in GBP 6.4 billion of gross structural hedge income in 2026 and GBP 17 billion over the next three years. We plan to fully reinvest maturing hedges as we did throughout 2025, and to assume a reinvestment rate of around 3.5%. This is below the current seven-year swap rate of 3.9%, which has become the most relevant proxy given the hedge duration. The average yield of maturing hedges remains below this level in 2026, 2027, and 2028, at circa 1.5%, 2.1%, and 2.7% respectively. This will result in continued structural hedge income growth, including circa GBP 1 billion in 2026.

We have already locked in $6 4 billion of Christ structural hedge income in 2006 and $17 billion over the next two years.

We plan to fully reinvest maturing hedges as we did throughout 2005.

And to assume a reinvestment rate of around 3.5%.

This is below the current seven year swap rate of three 9%, which has become the most relevant proxy given the hedge duration.

The average yield of maturing hedges remains the lowest level in 26, 27, and 28 at circa one 5% two 1% and two 7% respectively.

This will result in continued structural hedge income growth, including circa $1 billion in 2006.

The increase in the average hedge duration to three five years during 'twenty five we'll reduce the quantum of maturing hedges to third circa $35 billion per year from around $50 billion in recent years.

Anna Cross: The increase in the average hedge duration to 3.5 years during 2025, will reduce the quantum of maturing hedges to circa GBP 35 billion per year from around GBP 50 billion in recent years. This slows the pace of structural hedge income growth, but therefore prolongs the expected positive effect until at least 2029. Also note, the higher proportion of equity hedge and longer duration of product hedges outside of the UK, means it will attract circa 55% of growth in 2026, versus 75% in 2025. This change in mix is equivalent to circa GBP 200 million less income in Barclays UK in 2026, which instead will occur in other businesses, including the investment bank. Two years ago, we set out a plan to increase the investment bank returns by improving RWA productivity and modestly growing costs.

This slows the pace of structural hedge income grace, but therefore prolongs the expected positive effect until at least 2009.

Also of note the higher proportion of equity hedge and longer duration of product hedges at cited the U K means that will attract circa 55% of grace and $26 75 and 25.

This change in mix is equivalent to circa $200 million less income in Barclays UK in 2006, which instead will occur in other businesses, including the investment bank.

Two years ago, we set out a plan to increase the investment bank returns by increasing our W. A productivity and modestly rising costs.

Since then income to our average charter duration increased by 110 basis points to six six driven by 9% income Packer against flat out anyways.

Anna Cross: Since then, income to our average RWAs has increased by 110 basis points to 6.6, driven by 9% income CAGR against flat RWAs. In global markets, we increased RWA productivity by 60 basis points and grew RWAs to take advantage of the environment. In investment banking, we increased productivity by 150 basis points and released RWAs. Further capital productivity remains central to the investment bank's journey to higher returns, with a target of greater than 7% RWA productivity by 2028, having absorbed the impact of Basel 3.1. In part, this will come from a continued review of the loan book, which is around 60% complete. Of the GBP 2.1 billion increase in income since 2023, two-thirds came from global markets where we have built capacity.

In global markets, we increased our double AA productivity by 60 basis points and grill ought to be right to take advantage of the environment.

And in investment banking, we increased productivity by 150 basis points and released order delays.

Further capital productivity remains central to the investment bank's journey to higher returns with a target of greater than 7% arguably a productivity by 2028, having absorbed the impact of Basel III one.

In part this will come from the continued review of the loan book, which is around 60% complete.

Of the $2 $1 billion increase in income since 2003 key search came from global markets, while we have built capacity.

Financing income grew by <unk> 6 billion and a stronger industry wallet and we achieved the 26 target one year. Early this is particularly important given our focus on stable sources of revenue within the investment bank.

Anna Cross: Financing income grew by GBP 0.6 billion in a strong in-industry wallet, and we achieved the 26 target one year early. This is particularly important given our focus on stable sources of revenue within the investment bank. In our three focus businesses and markets, we grew share by 150 basis points between 2023 and H1 2025, and income grew by GBP 0.4 billion. In investment banking, we have meaningfully improved RWA productivity, which was our main objective. Progress towards our secondary objective, to add scale through fee share, has been slower, although banking fees grew in a market 30% larger than we had planned. Our objective now is to consolidate these gains. We will further deepen our relationships with our top 100 clients, markets, and our three focus businesses and financing.

In our three focused businesses and markets. We grew share by 150 basis points between 'twenty, three and half 125 and income grew by <unk> 4 billion.

In investment banking, we have meaningfully increased auditing a productivity, which was our main objective.

Progress towards our secondary objective to add scale to see share has been slower although banking fees grew in a market, 30% larger than we had planned.

Our objective now is to consolidate these gains we will further deepen our relationships with our top 100 clients and markets.

And our three focused businesses and financing and.

We will continue to build banker productivity, including in ECM, and M&A, which are capital light.

Anna Cross: We will continue to build banker productivity, including in ECM and M&A, which are capital light. In financial terms, given a flat wallet assumption, our plan does not therefore include material benefits from wallet growth to 2028. We expect proportionately more growth from the ICB as we leverage the treasury coverage model and the transaction banking investments outlined by Venkat.... This builds on the circa 140% growth in deposits achieved in two years, and as a result, we expect the International Corporate Bank to be a larger part of the IB, leading to more stable income overall. Moving on to costs on slide 66. We delivered positive cost jaws in each of the past three years and expect positive jaws in each of the next three years.

In financial terms, given our flat wallet assumption a plan that does not therefore include material benefits from Wallach rise to 2028.

We expect proportionately more growth from the AICPA.

As we leverage the treasury coverage model and the transaction banking investments outlined by Venkat.

This builds on the circa 140% growth in deposits achieved in two years.

And as a result, we expect the international corporate bank to be a larger part of the <unk> leading to more stable income overall.

Moving onto costs on slide 66.

We delivered positive cost shows in each of the past three years.

And expect positive jaws in each of the next three years.

This is a result of the income growth, we just discussed and modest cost growth to 2028.

Anna Cross: This is a result of the income growth we just discussed and modest cost growth to 2028. So what underpins this cost pathway? First, we don't expect around GBP 0.3 billion of one-off costs in 2025 to repeat, being motor finance at around GBP 50 million of unrelated one-offs in Q4. Second, we expect circa GBP 2 billion of gross efficiency savings by 2028, split roughly evenly across the years. This includes around GBP 0.2 billion of reduced Tesco Bank costs. We will deliver this by modernizing processes and platforms to increase efficiency, as Venkat outlined. These savings will more than offset the effects of inflation and business growth over the next three years. We expect annual investment costs to increase by around GBP 0.8 billion by 2028, including circa GBP 0.6 billion from the acquisition of Best Egg in Q2 2026.

So what underpins this cost pathway.

First we don't expect around $3 billion of one off cost in 'twenty five to repeat.

Major finance and around $50 million of unrelated one offs in Q4.

Second we expect circa 2 billion of gross efficiency savings by 28.

Roughly evenly across the years. This includes around $2 billion of reduced Tesco bank costs.

We will deliver this by modernizing processes and platforms to increase efficiency as venkat outlined.

These savings were more than offset the effects of inflation and business growth over the next two years.

We expect annual investment costs to increase by around $8 billion by 2008, including <unk> 6 billion from the acquisition of Best day in Q2 2006.

This will result in modest overall cost price and a high <unk> cost income ratio in 2006 with broadly stable costs thereafter to 28 supporting our life <unk> cost income ratio.

Anna Cross: This will result in modest overall cost growth and a high 50s cost-income ratio in 2026, with broadly stable costs thereafter to 2028, supporting a low 50s cost-income ratio. The Barclays UK cost profile is an important part of this overall shape, so let me briefly cover the dynamics here. Barclays UK has been on a transformational journey for several years, reducing the cost-income ratio from high 60s in 2021. Dual running of Tesco Bank added circa GBP 400 million to costs in 2025, including GBP 100 million integration costs. Other costs increased by circa GBP 200 million, net of efficiency savings. This was due to increased investment as well as the GBP 50 million one-off items I mentioned earlier. In 2026, we expect a modest reduction in costs versus 2025 and a low 50s cost-income ratio as we continue to integrate Tesco Bank and invest in the business.

The Barclays UK cost profile is an important part of the favorable shape. So let me briefly cover the dynamics here.

Barclays UK has been on a transformational journey for several years, reducing the cost income ratio from high <unk> in 2021.

Dual running of Tesco Bank added circa 400 million to cost and 25, including $100 million integration costs.

Other costs increased by circa $200 million net of efficiency savings.

This was due to the increased investment as well as the 50 million one off items I mentioned earlier.

In 2006, we expect a modest reduction in costs versus 25, and our lowest <unk> cost income ratio as we continue to integrate Tesco bank and invest in the business.

By 2008, we expect larger gross and net efficiency savings in line with the Greek and.

Anna Cross: By 2028, we expect larger gross and net efficiency savings in line with the group, and for Tesco Bank costs to fall by circa GBP 200 million. As a result, we expect Barclays UK costs to fall in each of the next 3 years, contributing to a mid-40s cost-income ratio in 2028. Our investments to date, organic and inorganic, are delivering revenue growth across the group. Investment in the financing platform from 2023 to 2025 has, for example, supported 60% growth in prime balances, and our investment in the mortgage broker platform has supported more than GBP 14 billion of mortgage applications since its launch. We have also realized GBP 100 million of funding synergies on Tesco and significant margin benefits through Kensington as both acquisitions support UK lending growth. We plan to double annual organic investment by 2027, focused on technology change and fee growth.

And for Tesco bank costs to fall by circa $200 million.

As a result, we expect Barclays UK costs to fall in each of the next three years contributing to the mid Forty's cost income ratio in 2008.

Our investments to date organic and inorganic are delivering revenue growth across the street.

Investment in our financing platform from 'twenty three 'twenty five has for example, supported 60% growth in prime balances.

And our investment in the mortgage broker platform has supported more than $14 billion of mortgage application since its launch.

We have also realized $100 million of funding synergies on Tesco and significant margin benefits through Kensington as dice acquisition support U K lending crashed.

We plan to double annual organic investment by 27.

<unk> focused on technology change and see growth.

In addition, we expect operational cost the best tag of circa <unk> 3 billion in 2006 and $4 billion in 2008.

Anna Cross: In addition, we expect operational costs of Best Egg of circa GBP 0.3 billion in 2026 and GBP 0.4 billion in 2028. This highlights the increased intensity of investment at this stage to support stronger fee growth and returns beyond 2028. Cost discipline remains a key focus of our plan and is the lever that we have most control of. During 2026, we expect a high 50s group cost-income ratio, improving again from 61 in 2025. This reflects strong progress in the UK businesses in particular, and looking ahead, we expect further improvements to deliver a low 50s% group cost-income ratio by 2028. Turning now to impairment. The group has operated at around the through-the-cycle target loan loss range of 50 to 60 basis points for the past decade, and this guidance remains appropriate. It reflects two offsetting factors.

This highlights the increased intensity of investment at this stage to support stronger fee Grace and returns beyond 28.

Yeah.

Cost discipline remains a key focus of our plan and it's the lever that we have most control off.

During 2006, we expect to high fifties, great cost income ratio and printing again from 61 in 'twenty five.

This reflects strong progress in the UK businesses in particular.

And looking ahead.

We expect further improvements to deliver our life, 50% group cost income ratio by 2008.

Turning now to the impairment.

The great has operated at around a through the cycle target loan loss range of 50 to 60 basis points for the past decade.

And this guidance remains appropriate.

Reflects two offsetting factors first in Barclays UK, lower risk and high credit card repayment rates have contributed to a loan loss rate consistently below the through the cycle expectations.

Anna Cross: First, in Barclays UK, lower arrears and high credit card repayment rates have contributed to a loan loss rate consistently below the through-the-cycle expectations. Strong mortgage affordability criteria and credit card quality support structurally lower impairment in the UK market. As a result, we now expect a lower through-the-cycle loan loss rate in Barclays UK of circa 30 basis points versus 35 basis points previously. Second, we expect a circa 500 basis points through the cycle loan loss rate in USCB. This is up from circa 400 basis points previously, due to the changing portfolio mix. It will be higher in 2026, at circa 550 basis points, reflecting post-acquisition stage migration of the General Motors portfolio and retention of some non-performing American Airlines balances. Both effects will diminish in 2027 and will be more than offset by higher NIM.

Strong mortgage affordability criteria and credit card quality support structurally lower impairment in the U K market.

As a result, we now expect a lower through the cycle loan loss rate in Barclays U K, a circa 30 basis points versus 35 basis points previously.

Second we expect a circa 500 basis points through the cycle loan loss rate in U S. C P.

This is up from circa 400 basis points previously due to the changing portfolio mix.

It will be higher in 2006, as circa 550 basis points, reflecting post acquisition stage migration of the general nature portfolio and retention of some nonperforming American Airlines balances.

Both effects will diminish in 2007.

We'll be more than offset by higher NIM.

During the past two years.

We have structurally improved Barclays profit signature.

Anna Cross: During the past 2 years, we have structurally improved Barclays' profit signature. The investment bank and USDB now deliver double-digit returns, and we plan to drive these higher whilst continuing to allocate additional capital to our highest returning UK businesses. By 2028, we expect capital generation to exceed 230 basis points, an improvement of more than 30% over the next 3 years. We continue to exercise disciplined capital allocation, first, by holding a prudent level of regulatory capital. As you have seen, we've been operating around the top of the 13 to 14% target range, ahead of the expected regulatory developments that I discussed earlier. Second, we will distribute greater than GBP 15 billion to shareholders by 2028, subject to regulatory and board approval. And third, we will maintain capacity for selective investments to support structurally higher returns beyond 2028.

The investment bank in the U S. CBD now deliver double digit returns and we plan to drive these higher.

Whilst continuing to allocate additional capital to our highest returning U K businesses.

By 28, we expect capital generation to exceed 230 basis points, an improvement of more than 30%.

Over the next two years.

We continue to exercise disciplined capital allocation.

First by holding a prudent level of regulatory capital.

As you have seen we've been operating around the top of the 13% to 14% target range.

Head of the expected regulatory developments that I discussed earlier.

Second we will distribute greater than $15 billion to shareholders by 28 subject to regulatory and board approval.

And third we will maintain capacity for selective investments to support structurally higher returns beyond 28.

Given the strength of capital generation.

This capacity does exceed the level of investment set out in the plan today.

Anna Cross: Given the strength of capital generation, this capacity does exceed the level of investment set out in the plan today. As we have done, we will exert considerable discipline over any investment, given the importance we place on shareholder distributions. We expect a progressive increase in our total payout in 2026. We are also evolving the mix of distribution to reflect the growing consistency of capital generation and to recognize feedback from shareholders. In addition to the move to quarterly buybacks announced in Q3, we plan to increase the dividend to GBP 2 billion in 2026 from GBP 1.2 billion in recent years. While we continue to prefer share buybacks, we will review the mix of distributions periodically to reflect the level of our returns and the preferences of our shareholders. Bringing this together on the next slide.

As we have done we will exert considerable discipline over any investment given the importance we place on shareholder distributions.

We expect a progressive increase in our title payout in 2026.

We are also evolving the mix of distribution.

Reflect the growing consistency of capital generation and to recognize feedback from shareholders.

In addition to the needs to quarterly buybacks announced in Q3, we plan to increase the dividend to <unk> 2 billion in 2006 from $1 2 billion in recent years.

While we continue to prefer share buybacks, we will review the next of distributions periodically to reflect the level of our returns and the preferences of our shareholders.

Bringing this together on the next slide.

Operational progress during the past few years means we are confident in achieving our 26 targets and guidance.

Anna Cross: Operational progress during the past two years means we are confident in achieving our 2026 targets and guidance. But momentum across the group also underpins our confidence in delivering the 2028 targets outlined today. We are focused as ever on driving greater efficiency and operating leverage, protecting returns in a range of environments, and we will drive structurally higher and more sustainable returns beyond 2028 by investing to support more diverse sources of income and fee growth. Over to Ben Cart for final remarks.

But momentum across the group.

Also underpins our confidence in delivering the 28 targets outlined today.

We are focused as ever on driving greater efficiency and operating leverage protecting returns in a range of environments, and we will drive structurally higher and more sustainable returns to Jan 28 by investing to support more diverse sources of income and secret.

Yes.

Over to <unk> for final remarks.

Mhm.

Alright, Thank you Anna.

So two years on since our Investor update in February 2024.

C.S. Venkatakrishnan: Right. Thank you, Anna. So 2 years on since our investor update in February 2024, as we've discussed, we remain on track to deliver our goals. We are moving from a period of measured ambition to one of accelerating ambition. We aim for sustainably stronger returns, greater shareholder distributions, and operational excellence. The targets which we have shared today are underpinned by structural improvements to the profit signature of the bank, which we have made in the last 2 years, and our drive to become a simpler, better, and more balanced bank. We plan to continue this progress in the coming 3 years. And of course, our journey does not end in 2028. Our ultimate aim is to secure structurally higher and more resilient returns beyond 2028.

As we've discussed we remain on track to deliver our goals.

We're moving from a period of measured ambition to one of accelerating ambition.

We aim for sustainably stronger returns.

This is shareholder distributions and operational excellence.

The targets, which we have shared today are underpinned by structural improvements to the profit signature of the bank.

We have made in the last two years.

And our drive to become a simpler better and more balanced bank with.

We plan to continue this progress in the coming three years.

And of course, our journey does not end in 2028.

Our ultimate aim is to secure a structurally higher and more resilient returns beyond 2028.