Barclays PLC 6-K, filed May 3, 2023
Barclays PLC (BCS)
6-K
2023-05-03
For: 2023-05-03
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Added on
April 11, 2026
About this 6-K
Barclays PLC filed this 6-K on May 3, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
May 03,
2023
Barclays PLC
(Name
of Registrant)
1 Churchill Place
London E14 5HP
England
(Address
of Principal Executive Office)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F.
Form
20-F x Form 40-F
This
Report on Form 6-K is filed by Barclays PLC.
This
Report comprises:
Information
given to The London Stock Exchange and furnished pursuant
to
General
Instruction B to the General Instructions to Form 6-K.
EXHIBIT
INDEX
__________________________________________________________________________________
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BARCLAYS
PLC
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(Registrant)
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Date:
May 03, 2023
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By: /s/
Garth Wright
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Garth
Wright
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Assistant
Secretary
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3 May 2023
Barclays PLC
AGM Statements
Chairman's 2023 AGM statement
This is the first time that we have had a normal AGM in London
since 2019, and I am delighted to welcome you here. The AGM is a
positive opportunity to build on feedback and engagement, and in
that spirit we hope for a constructive dialogue
today.
The last year or so has seen a continuing absence of what we used
to think of as normality, in both the macroeconomic and the
geopolitical environments. All of these factors have an impact on
the operations of a significant global bank like Barclays and it is
appropriate to start this AGM with thanks to all of my colleagues
who work hard to serve customers and clients, whilst at the same
time making continual improvements to the bank's operations in
order to keep up with the changing marketplace and the
opportunities afforded by technology. Notwithstanding the material
macroeconomic and geopolitical upheaval that unfolded over the past
year, we have continued to run your company to support the
financial health and well-being of all of those who bank with us
and indeed wider society, which in turn delivers value for you our
shareholders. Venkat, I am sure, will shine a light on the myriad
ways in which Barclays has lived its Purpose, but I am always
humbled by the steadfast dedication of colleagues to ensure our
customers and clients have access to the finance, tools and
guidance they need to weather the stormy conditions that persist,
and ultimately to flourish.
I would also like to say particular thanks to two gentlemen sitting
on the platform here today who have completed nine years of service
to Barclays and will be retiring imminently. One is Crawford
Gillies, and the other is Mike Ashley, respectively the chair of
Barclays UK (and prior to that our senior independent director),
and in Mike's case the chair of the Board Audit Committee. It is
often challenging being on the board of a large bank. I was not
here nine years ago but, by all accounts, the bank faced
significant challenges. Crawford and Mike have played key roles as
part of the board in initially bringing stability to what was a
challenged business and then helping to develop our strategy,
refresh the management team and oversee significant improvements in
the operations of the bank. Crawford and Mike, on behalf of
the shareholders, thank you for all that you have
done.
I should add that the next chair of Barclays UK is Sir John
Kingman, who will be joining the board next month subject to
regulatory approval. The new chair of the Board Audit Committee is
Julia Wilson who is sitting here and has been on the board for two
years already. And we also welcome Marc Moses to the board, also
sitting here; Marc has joined the risk and the audit committees and
brings great experience from his time as the chief risk officer and
on the board of HSBC.
The AGM is, of course, principally an opportunity to hear from
shareholders and I would like to turn to a question which will be
at the top of everyone's minds, the situation of banking and
shareholder returns in today's uncertain environment.
There has been considerable upheaval in banking in the last few
months, referring to the collapses of three US banks, and the rapid
acquisition of one major Swiss one. Your board has spent
considerable time examining these developments, considering
contagion risks, and seeking to ensure that none of the mistakes
made in these cases are repeated at Barclays. Your board and
management team are firmly of the view that we have carefully
managed the risks that undermined those other banks. Our liquidity
management is more robust than seems to have been the case in some
of these situations. Our stress tests have frequently incorporated
materially higher interest rate scenarios of the type we have
recently witnessed. We also have a profitable business model,
returning over 10% in each of our business lines and at group
level. We have an excellent management team, recently strengthened
with some new hirings who bring experience from their previous
roles in other major firms, and of course, Venkat and Anna are, I
am pleased to report, running the ship very well as they enter
their second year. I would like to say to Venkat, again on behalf
of the multitude of shareholders who have already expressed this to
me and no doubt to you directly, how delighted we are that you are
back from your treatment for cancer. We applaud your resilience and
wish you the very best for coming years.
The management and the board are very focused on the question of
shareholder returns. In cash terms these take the form of dividends
and share buybacks. We are committed to growing our dividend and
also to utilising surplus capital to buy back shares. We will only
do that after due consideration of the needs of the business, and
should not forget that the world remains a very uncertain place,
but we will strive to ensure full transparency as to how we
allocate the surplus capital we generate each year between
investments in the business, meeting regulatory obligations and
returning capital to shareholders.
The other significant element in shareholder returns is the share
price which remains at around a clearly unsatisfactory 50% discount
to our book value. What are we doing about this? First, we must
ensure we continue with returns over and above our target level. We
are doing this at present whilst at the same time ensuring the
financial and operational resilience of the bank. We continue to
operate within our target range for capital, our liquidity is
strong and our deposit flow healthy and in line with the norm. We
will also do this within the context of a settled strategy; we have
a diversified but connected portfolio of businesses, and believe
that they not only add to each other, but that they provide an
overall stability and breadth to earnings which is important to
consistency of results and the generation of shareholder
value.
Secondly, to avoid the kind of error which cost us so much money
last year when we failed to properly operate within the limit set
for securities that we were issuing in the United States. Under the
guidance of the board, the management has launched a change
programme, alongside our Purpose, Values and Mindset, to set a
standard of consistent excellence, ensuring that we are holding
ourselves to that standard in all that Barclays does, whether
simple or complex. This is a very material endeavour, backed by
significant investment, and we will demonstrate measurable progress
to you, our shareholders, in a transparent and regular way. Venkat
will say more about our determination to be operationally
excellent, as well of course as our financial performance, in just
a moment.
Thirdly, and this is particularly important given the shrinking
European investment banking world, we must ensure that you, our
shareholders properly understand how we as a business make money
and why our model/strategy is the right one for the bank. I hope
you feel that we are making progress in that regard through
improvements in our disclosures. We are very open to shareholder
questions on that topic, and more.
Can I now turn to the environment, the progress we have made and
the work we still have to support sustainable growth. Three years
ago, we committed to being authentic, science-based and transparent
in our approach to the climate crisis. We have significantly
enhanced our climate related disclosures, incorporating them within
the bank's Annual Report for the first time this year. This has
been well received by our institutional shareholders, but we
continue to welcome feedback on how we can improve further, and of
course on our policies too.
There is now less time in which to do more as the years advance and
new challenges such as the continuing war in Ukraine mount up.
Since we last met, we have continued to listen to shareholder
feedback, including much of that expressed post our Say on Climate
vote last year. We have tightened our thermal coal policy and are
now in line with those banks which have committed to exit financing
thermal coal in OECD and EU countries by 2030. In addition, we have
substantively exited the Oil Sands sector, as a result of the
policy adopted in 2020 and will not be financing it going forward.
We have set targets for five of the 10 NZBA high-emitting sectors,
now including automotive manufacturing, and, in respect of
residential real estate, we have measured our baseline emissions
and determined the convergence point to align with a 1.5C pathway,
consistent with the Paris goals.
With respect to the ongoing elements of our work, we continue to
refine our client transition framework and to assess our clients'
plans and alignment with our Scope 3 targets. We are also
progressing the top-down review of our total balance sheet
emissions, alongside the detailed targets for high-emitting
sectors. We have strengthened the team with new heads of
Sustainable Finance in the CIB and BUK, and detailed work on sector
pathways and client transition plans, including our work with the
UK's transition plan taskforce, will better inform our future
strategy and policies, including our approach to oil and gas
financing. It is our view, and I know that not everybody agrees,
that the state of energy provision, today, and the questions of
energy poverty and energy security, mean that we cannot simply
abandon this sector. Our absolute financed emissions from upstream
energy have come down by almost one third since we started on this
road in 2020, reflecting a steep decline in our capital markets
financing for oil and gas, together with a slight reduction in the
carbon intensity of our financing. At the same time, we have
mobilised £88bn in green finance since 2018, increasingly
focusing our investment pounds and dollars on renewables and lower
intensity forms of hydrocarbon energy and other green activity. We
are targeting a vast amount of new finance - $1trillion - for
renewables and other sustainable activities, but at the moment
programmes are not there for all of this investment to be taken up,
a topic I will return to briefly in a moment.
Nature and biodiversity are increasingly important areas of focus
for Barclays and the wider industry, given that nature and
ecosystem services fundamentally underpin our economies and
societies and have strong linkage with climate change. We recognise
the importance of the finance sector in stewarding responsible
finance towards a nature-positive future, including through our
engagement with industry groups, and the Task Force on
Nature-related Financial Disclosures forum. We are pleased to have
strengthened our policies to address deforestation in our recently
updated Forestry and Agricultural Commodities
Statement.
I spoke earlier about how Barclays' financial performance, and our
progress against our strategy, is inextricably linked to the global
economy. A similar affinity applies to tackling the climate crisis,
with success contingent upon a more joined up approach between
governments, businesses, financiers and asset owners in developing
policy approaches to the climate. We are not on different sides of
the table. It is clear from the success for instance of wind policy
in the UK that the government has an important part to play in
kickstarting aspects of the green economy. There is still more we
can do together to fully harness the availability of finance and
innovation, which is vibrant in Britain, and formulate the
necessary national and regional policies; Barclays has committed to
play an important role in supporting our clients and the economy to
transition.
Capital markets is another area where I must stress the importance
of joined up action between governments and financial firms in
order to catalyse economic growth to benefit our societies.
This is particularly acute for Britain, and London as a capital
market. You will be familiar with the statistics showing the
decline of companies choosing to list in the UK. There is plenty of
innovation in Britain. There are plenty of studies too of the
reasons why successful growing companies do not necessarily end up
on London's capital markets, but we must now come together to put
London's capital market back on the front foot once more. Ensuring
the UK is a great location for investment matters for economic
growth, jobs and the prosperity of every person who chooses to live
and work in Britain. This is not just a problem for finance. If we
cannot nurture and grow our own companies, the focus of investment
and employment will inevitably continue to drift elsewhere. The
drivers for this set of circumstances are complex and go beyond
questions of regulation - although that is important - encompassing
wider features of our risk culture and history as well as of course
the emergence of many successful competitors to London around the
world. Barclays is determined to play a big part in the
reinvigoration of the London markets and help lift up the economy
of a nation that has been our home for over 300 years. I hope
that we will have more to say on this at future AGMs.
With that, I would like to hand over to you Venkat, prior to asking
our shareholders, to ask questions.
Chief Executive's 2023 AGM statement
Thank you Nigel and welcome to all of our shareholders. As I
mentioned at last year's AGM, I consider it an enormous privilege
to lead this great institution which has been part of the national
fabric for 330 years.
We have the opportunity today to discuss the difficult operating
environment in the global economy and markets, and to review our
2022 performance. I would also like to update you on progress
against our strategy, including how our disciplined investments are
laying the path to growth. Finally, I want to reiterate there is
still more to do to operate all of our businesses to their full
potential. Your leadership team has been thinking very carefully
about how we can deliver to an even higher standard throughout
Barclays, and I would like to build on Nigel's comments on that
important ambition.
The rate and scale of unexpected events in the global economy in
2022 were striking. From Russia's invasion of Ukraine and the
resulting energy security crisis, to the upending of the
contemporary interest rate environment, and continued repercussions
of COVID-19. The challenges have persisted into 2023, as we
have seen in the banking sector in the US and Europe.
This global turmoil created a challenging operating environment for
Barclays, and very real effects for our stakeholders across our
different geographies. Nonetheless, the events that unfolded served
to reaffirm Barclays' critical role in helping our customers and
clients manage uncertainty, and I am proud of the ways in which we
demonstrated our support over the past year. I will draw out some
highlights in just a moment.
Before I do, a brief word on the acute disruption we have recently
observed in parts of the banking sector. Nigel just reiterated the
Board's confidence in Barclays' resilience. Let me expand on what
underpins that confidence. Over a long period of time, we have
undertaken a number of deliberate actions that mean we can operate
normally in a volatile macro-economic and market environment. Our
prudent approach to lending, strong risk management and robust
liquidity, underpinned by our diverse deposit strategy, have
insulated Barclays from this volatility and enabled us to continue
to support our customers and clients through an uncertain
period.
I am particularly pleased with how we helped our customers, clients
and communities despite persistent instability in the global
landscape. We know the external events of 2022 created harder
conditions for many of those who bank with us, and for society.
That is why, in response to rising cost of living for example, we
ensured personal customers had access to tailored guidance to
reflect their needs, as well as running hundreds of masterclasses
to help our SMEs with their financial planning. We also launched a
new Rainy Day Saver Product, with a 5% interest rate to help build
customers' financial resilience, and partnered with the Trussell
Trust who work with local communities most in need.
I am very proud to note that the Barclays LifeSkills programme
recently marked its 10 year anniversary, having helped over 18
million people with money management and employability skills. Such
skills are more important than ever in the current climate and this
program reflects our commitment to society, and the
future.
The support that Barclays is able to extend goes much wider. There
is a clear opportunity for financial services to help address
broader, and complex societal issues like energy independence and
efficiency, housing or economic growth. I am proud of how Barclays
has played its part helping tackle some of the most pressing issues
facing policymakers around the world, including in the United
Kingdom, which has been our home for over three
centuries.
I would like to highlight some powerful examples from the past
year. We were appointed to run the equity side of the fundraising
process for the UK Government's Sizewell C project, and we trialled
a new proposition - our Greener Home Reward Scheme - to support the
energy efficiency of our customers' homes. Meanwhile, in 2022 we
met our target of supporting over 250 entrepreneurs, through our
Unreasonable Impact programme, to pursue ventures with the
potential to create the jobs of the future. In each of these
instances we have shown creativity and commitment to make a
positive and enduring difference in the societies in which we all
live and work.
Our ability to fulfil our Purpose is enabled by our resilient
financial performance. In 2022 we achieved a strong set of results
notwithstanding the uncertain operating environment. We achieved a
Group income of £25 billion, delivered a profit before tax of
£7 billion, and met our target of greater than 10% return on
tangible equity. We maintained a strong Common Equity Tier 1 (CET1)
capital ratio of 13.9%, and returned capital to shareholders, with
a total capital return equivalent of c13.4p per share. On
shareholder returns, I recognise there is more work to do to reduce
the discount at which the bank's shares trade to our book value,
and will return to this point later.
Our 2022 financial performance illustrated how we benefit from
having a diversified franchise, with each of our three main
operating businesses delivering double-digit returns. In Barclays
UK, our retail bank, we grew income by 11% year-on-year, supported
by improved efficiencies and the tailwind of rising interest rates.
In our Consumer, Cards and Payments business, income was up 35%,
reflecting higher balances in US cards and increased payments
activity following the ease of lockdown restrictions. Finally,
within Barclays International, our Corporate and Investment Bank
income was up 8% versus 2021, driven in particular by our Global
Markets business.
I would like to emphasise an important point here on how we balance
investment opportunities in the business with capital returns.
Throughout 2022 we pursued a disciplined approach to investments,
focused on driving efficiencies and growing the business in line
with our strategic priorities. It is because of these investments
we are seeing improved profitability, as borne out in the record
quarter of profitability we have just reported in
2023.
That brings me on to our strategic priorities. At last year's AGM,
I laid out Barclays' three strategic priorities. I am pleased to
report that we have made progress against each in the past
year.
Against the first priority, delivering next-generation, digitised
consumer financial services - our ongoing investment in
digitisation is cultivating a more seamless experience for
customers. 90% of all our customer transactions are now done
digitally, with our Barclays App customers growing to 10.5 million
by the end of 2022. We also diversified our product offering
further, via the acquisition of Kensington Mortgage Company, a
specialist mortgage lender, whilst in the US our partnership with
GAP is helping us scale our cards portfolio. Both of these
investments will provide us with further growth
opportunities.
Against the second priority - delivering sustainable growth in the
CIB - we have continued to invest in our technology, our people,
and our capabilities to build a globally competitive business. We
opened a new state-of-the-art trading floor in London, and were
ranked 6th in the world for Global Markets. We also made good
progress pursuing diversification within the Corporate and
Investment Bank, which proved its value against a backdrop of high
volatility in 2022.
Finally, we have come a long way in building our capability and
reputation with clients on the transition to the low-carbon economy
in a short period of time. Last year we acted as the sole M&A
advisor to Con Edison, on the $6.8 billion sale of their clean
energy business, and more recently I hosted over 200 clients in New
York at our inaugural ESG conference - a testament to our expertise
in this area.
You just heard from Nigel on progress regarding the bank's climate
policies, and in addition we have been making progress in helping
finance our clients' transition. We are on track to meet our target
to deliver £100 billion in green finance well ahead of the
2030 target date, and recently announced a new target to facilitate
$1 trillion of Sustainable and Transition Financing between 2023
and 2030. We are also using our balance sheet to support investment
in sustainable green technology start-ups, reinforcing Barclays'
uniquely positioned eco-system for scaling green technology.
Barclays can play a key role supporting the transition, and in
tandem, grow our business.
Whilst our performance in 2022 was strong overall, the matter with
the over issuance of securities significantly marred our success. I
echo Nigel's deep disappointment that this occurred. Shareholders
and management want Barclays to perform at a consistently high
standard, day in, day out. This means more than just avoiding
mistakes.
We must operate all of our businesses to their full potential, and
deliver nothing less than world-class service for our customers and
clients, every time. As Nigel described, towards the end of 2022 we
established a change programme to set a standard of consistent
excellence throughout the organisation, backed by a clear action
plan to embed it. I believe that if we continue to generate
predictable results, demonstrate progress against our strategy for
growth, and operate all of our businesses consistently well, we can
close the gap in our price to book value.
Our achievements rely entirely on the skill and dedication of our
colleagues, who bring their best to Barclays each day. I am
grateful to every single one of them for their hard work,
commitment to our purpose, and pursuit of excellence. The
working environment has justifiably evolved since the pandemic,
with a salutary premium on flexibility. We have developed our
policies on hybrid working with pragmatism and compassion, seeking
to balance flexibility, customer service and availability, and the
resilience and productivity of the bank. We were, therefore,
very pleased to have received the LinkedIn award for the Number 1
employer in the UK for the third year in succession, an
unprecedented achievement. I am also especially pleased to
have just learnt this morning that Barclays has been ranked in the
10 Top Graduate Employers in the Times, our highest ranking since
1997 when the list began.
To conclude, we achieved a great deal this year. We delivered a
strong and resilient financial performance, progressed our
strategic priorities and plan for growth, and supported our
customers and clients when they needed us most.
Thank you for listening.
- ENDS -
For further information, please contact:
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Investor
Relations
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Media
Relations
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Adam Strachan
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Jonathan Tracey
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+1 212 526 8442
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+44 (0)20 7116 4755
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James Johnson
+44 (0)20 7116 7233
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About Barclays
Barclays is a British universal bank. We are diversified by
business, by different types of customer and client, and
geography. Our businesses include consumer banking and
payments operations around the world, as well as a top-tier, full
service, global corporate and investment bank, all of which are
supported by our service company which provides technology,
operations and functional services across the Group. For
further information about Barclays, please visit our
website home.barclays
Forward-looking statements
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and Section 27A of the US Securities Act of 1933,
as amended, with respect to the Group. Barclays cautions readers
that no forward-looking statement is a guarantee of future
performance and that actual results or other financial condition or
performance measures could differ materially from those contained
in the forward-looking statements. Forward-looking statements can
be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as 'may', 'will', 'seek', 'continue', 'aim',
'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements can be made in writing
but also may be made verbally by directors, officers and employees
of the Group (including during management presentations) in
connection with this document. Examples of forward-looking
statements include, among others, statements or guidance regarding
or relating to the Group's future financial position, income
levels, costs, assets and liabilities, impairment charges,
provisions, capital, leverage and other regulatory ratios, capital
distributions (including dividend policy and share buybacks),
return on tangible equity, projected levels of growth in banking
and financial markets, industry trends, any commitments and targets
(including environmental, social and governance (ESG) commitments
and targets), business strategy, plans and objectives for future
operations and other statements that are not historical or current
facts. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements speak only as at the date on which they
are made. Forward-looking statements may be affected by a number of
factors, including, without limitation: changes in legislation,
regulation and the interpretation thereof, changes in IFRS and
other accounting standards, including practices with regard to the
interpretation and application thereof and emerging and developing
ESG reporting standards; the outcome of current and future legal
proceedings and regulatory investigations; the policies and actions
of governmental and regulatory authorities; the Group's ability
along with governments and other stakeholders to measure, manage
and mitigate the impacts of climate change effectively;
environmental, social and geopolitical risks and incidents and
similar events beyond the Group's control; the impact of
competition; capital, leverage and other regulatory rules
applicable to past, current and future periods; UK, US, Eurozone
and global macroeconomic and business conditions, including
inflation; volatility in credit and capital markets; market related
risks such as changes in interest rates and foreign exchange rates;
higher or lower asset valuations; changes in credit ratings of any
entity within the Group or any securities issued by it; changes in
counterparty risk; changes in consumer behaviour; the direct and
indirect consequences of the Russia-Ukraine war on European and
global macroeconomic conditions, political stability and financial
markets; direct and indirect impacts of the coronavirus (COVID-19)
pandemic; instability as a result of the UK's exit from the
European Union (EU), the effects of the EU-UK Trade and Cooperation
Agreement and any disruption that may subsequently result in the UK
and globally; the risk of cyber-attacks, information or security
breaches or technology failures on the Group's reputation, business
or operations; the Group's ability to access funding; and the
success of acquisitions, disposals and other strategic
transactions. A number of these factors are beyond the Group's
control. As a result, the Group's actual financial position,
results, financial and non-financial metrics or performance
measures or its ability to meet commitments and targets may differ
materially from the statements or guidance set forth in the Group's
forward-looking statements. Additional risks and factors which may
impact the Group's future financial condition and performance are
identified in Barclays PLC's filings with the SEC (including,
without limitation, Barclays PLC's Annual Report on Form 20-F for
the financial year ended 31 December 2022), which are available on
the SEC's website at www.sec.gov.
Subject to Barclays PLC's obligations under the applicable laws and
regulations of any relevant jurisdiction (including, without
limitation, the UK and the US) in relation to disclosure and
ongoing information, we undertake no obligation to update publicly
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.