Barclays has announced a three-year strategic plan designed to make the group simpler, more balanced, and more profitable, with targets including a return on tangible equity (RoTE) above 12% and the return of at least £10 billion to shareholders by the end of 2026. The plan was announced on 20 February 2024.
The plan commits to rebalancing the group's business mix and to creating a bank whose earnings are more diversified and more predictable.
REBALANCING THE INVESTMENT BANK
A central element of the strategic plan is the commitment to reduce the investment bank's share of group risk-weighted assets from its current level of 58% to approximately 50%. This reallocation of capital is intended to free up resources for businesses including Barclays UK, the UK Corporate Bank and Private Bank & Wealth Management.
Barclays also targets a cost-to-income ratio in the high-50s percentage range.
SHAREHOLDER RETURNS
Barclays plans to return at least £10 billion to shareholders by 2026 through a combination of dividends and share buybacks.
Barclays has framed the three-year targets as achievable on the basis of its existing business mix and the execution levers available to management.
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