BARCLAYS BANK PLC/Earnings transcript

August 3, 2026

Fixed Income Management Script (PDF 181KB)

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BARCLAYS BANK PLC · Q2 2026

Investor Relations

Barclays PLC Q2 2026 Results

Fixed Income Conference Call Speech

Anna Cross, Group Finance Director

Dan Fairclough, Group Treasurer

Anna Cross, Group Finance Director

1. Good afternoon and welcome to the H1 2026 fixed income investor call. I’m joined by Dan

Fairclough, our Group Treasurer.

2. Let me begin with a brief overview of our financial performance.

Slide 3: Group Q226 performance against financial targets

3. Q2 was another strong quarter, with a Group Return on Tangible Equity of 16.1%.

4. All three UK businesses delivered RoTE above 20%, with consistent volume and revenue growth.

5. Investments we have made allowed us to again monetise strong Markets and Banking wallets in the Investment Bank, where RoTE increased nearly 4% versus last year to 16%.

6. While the US Consumer Bank delivered 10.5% RoTE excluding the American Airlines gain on sale.

7. Given the momentum and breadth of our progress, we are upgrading the Group income target to circa £31.5 billion in 2026.

8. And we remain confident in delivering Group RoTE greater than 12% in 2026, having achieved 14.8% in H1.

9. We are using additional capacity from stronger H1 profitability to structurally improve

Barclays’ returns.

10. We therefore anticipate taking additional cost actions later in 2026 to create greater cost flexibility from 2027.

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11. These plans increase our confidence in delivering 2028 RoTE greater than 14%, and accelerate our progress towards an all-weather RoTE beyond 2028.

12. These actions will not disrupt the Group’s distribution plans or financial targets in 2026, including the high-50s cost: income target.

Slide 4: Q226 LLR of 51bps; through the cycle guidance of 50-60bps

13. Moving to slide 4 on credit quality.

14. The Q2 Group impairment charge of £571 million equated to a loan loss rate of 51 basis points.

15. Consumer and corporate balance sheets remain robust and borrowers are behaving rationally.

16. As an accounting matter, consensus unemployment expectations increased as we anticipated, consuming the Post Model Adjustments that we recognised last quarter in

Barclays UK and US Consumer Bank.

17. We retained the £68 million PMA in the Investment Bank, recognising downside bias due to global macro uncertainty.

18. For 2026, we continue to expect a Group loan loss rate around the top of the 50 to 60 basis point range.

Slide 5: UK economic trends conducive to banks’ balance sheet growth

19. Before handing over to Dan, let me cover the economic trends in the UK.

20. Whilst Barclays benefits from diversification, with 40% of income generated in the US, the

UK is our home market.

21. The UK economy has been growing, in nominal and real terms and at a faster rate than the eurozone.

22. This has supported real wage growth, rising house prices and stable employment.

23. Declining investment since the late-2000s meant that UK corporate debt to GDP had

2 fallen to a multi-decade low.

24. Corporates have had the capacity to invest, but not the confidence.

25. This seems to be changing.

26. The majority of corporates we survey tell us they are gaining confidence in their prospects.

27. Firms plan to increase investment in the next 12 months, including in technology.

28. This is broad based, across sectors and regions, with overall UK corporate lending up 9% in the past year.

29. As you can see from our results for several quarters, Barclays is helping foster UK growth, not just benefitting from it.

30. I’ll now hand over to Dan for the balance sheet highlights.

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Dan Fairclough, Group Treasurer

Slide 7: Robust capital position with 14.3% CET1 ratio (14.0% pro-forma)

31. Thanks Anna.

32. Let me begin first with capital on slide 7.

33. We ended the quarter with a CET1 ratio of 14.3%, generating 115 basis points of capital from profits year to date.

34. Pro-forma for the £1 billion buyback, the CET1 ratio was 14.0%, consistent with our intention to operate around the top of our 13-14% CET1 range, pending regulatory clarity.

35. Attributable profit growth should continue to drive strong capital generation and EPS momentum, which we amplify through share buybacks.

Slide 8: Guidance on regulatory driven RWA inflation

36. Looking ahead, guidance for regulatory RWA inflation in 2027 remains unchanged at £19 to £26 billion.

37. This includes Basel 3.1 changes on the 1st of January and implementation of IRB in US

Consumer Bank, which we now expect in H2 2027.

38. Group Pillar 2A requirements are expected to reduce following each of these events, and we will provide further guidance as we get clarity.

39. On the broader regulatory landscape, we note the recent Financial Stability Report but believe more can be done to drive UK growth.

40. Proposed changes would reduce Barclays Tier 1 leverage requirements modestly, by

8bps, supporting its position as a backstop measure.

41. We continue to work closely with the Bank of England to promote international alignment and competitiveness of the UK financial services sector.

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Slide 9: Operating with a prudent buffer to each tier of capital requirements

42. Moving up the capital stack, on slide 9, we show our Tier 1 and total capital requirements as a proportion of RWAs.

43. We continue to target a prudent buffer against each of these requirements, which helps us manage any RWA and FX movements, as well as our issuance and redemption profiles.

44. Our Tier 1 ratio is 18.0% and Total Capital ratio is 20.3%, maintaining healthy headroom above our 14.6% and 17.8% respective regulatory requirements.

45. Within these ratios, we had an AT1 component of 3.6%.

46. As stated at the full year results, we had a more limited issuance requirement for AT1 and

Tier 2, given our lighter redemption profile.

47. I am pleased to report that our planned 2026 capital issuance is now complete, following our inaugural $1 billion Australian Dollar AT1 and £750 million Sterling Tier 2, both priced this quarter.

Slide 10: MREL position well established

48. Turning now to slide 10, credit market conditions have been strong in the first half of the year, and we have completed our £10 billion MREL issuance plan against this supportive backdrop.

49. Looking forward, we may look at some pre-funding of 2027 volumes, subject to market conditions.

50. Finally, at the operating company level, we recently issued our first publicly placed

Barclays Bank PLC senior since 2020, with a €3 billion Euro offering.

51. This was a good example of ensuring our funding sources remain active and diverse.

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Slide 11: Prudently managed LCR supported by a highly liquid balance sheet

52. Onto the next slide on liquidity.

53. Our average LCR of 158% is £117 billion in excess of our regulatory requirements.

54. Our average net stable funding ratio was 136% and the loan to deposit ratio was 75%, both demonstrating a continued robust liquidity position.

Slide 12: Diverse and growing deposit base

55. On slide 12, you can see that our deposit base increased by 1% across customer segments.

56. This quarter, we saw continued growth in International Corporate Bank deposits as we strategically target growth across the UK and US.

57. Elsewhere, our deposit base continues to demonstrate a high level of stability as a source of funding, with diversification between customer segments, geographies and currencies.

58. A significant proportion also benefits from long-standing operational relationships and deposit insurance.

Slide 13: Structural hedge expected to deliver income growth beyond 2028

59. Turning to slide 13.

60. Structural hedge income growth is predictable and benefits all divisions, accounting for circa 45% of Q2 Group NII.

61. It will drive around half of the planned Group income growth from 2025 to 2028 and remain a meaningful tailwind beyond.

62. As a planning matter, these expectations are based on a 3.5% reinvestment yield.

63. Swap rates were above this level again in Q2 at 4.3%, further supporting NII in future years.

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Slide 14: Targeting Barclays PLC to be “A” composite across all indices over time

64. Finally, a quick word on credit ratings.

65. Our target remains for Barclays PLC senior to qualify as single A composite across all indices. This would require an upgrade from either Moody’s or S&P.

66. We believe the outcomes of our strategic plan and consistent execution to date support this objective, particularly in terms of increased profitability and greater capital generation.

67. We will continue to engage with all credit rating agencies on this topic.

68. With that, I’ll hand back to Anna.

Anna Cross, Group Finance Director

69. Thank you for your continued support of Barclays and our broader franchise.

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Important Notice

The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer to sell or solicitation of any offer to buy any securities or financial instruments, or any advice or recommendation with respect to such securities or other financial instruments.

Information relating to

• regulatory capital, leverage, liquidity, resolution and related regimes is based on Barclays' interpretation of applicable rules and regulations as in force and implemented in the UK as at the reporting date, including, but not limited to: CRR; the PRA Rulebook; and any applicable delegated acts, implementing acts or technical standards; in each case as amended and, where applicable, as such rules and regulations form part of domestic law by virtue of the European Union (Withdrawal) Act 2018. All such regulatory requirements are subject to change and disclosures made by the Group will be subject to any resulting changes. The Pillar 2A requirement is also subject to at least annual review;

•

MREL reported as at 31 December 2025 is based on Barclays' understanding of the Bank of England’s statement of policy on "The Bank of

England's approach to setting a minimum requirement for own funds and eligible liabilities (MREL)" published in December 2021, and its

MREL requirements communicated to Barclays by the Bank of England. In July 2025, the Bank of England published amendments to the

December 2021 MREL statement of policy, which took effect on 1 January 2026. Binding future MREL requirements remain subject to change, as determined by the Bank of England, taking into account a number of factors as described in the amended statement of policy, along with international developments;

• future regulatory capital, leverage, liquidity, funding and/or MREL, including forward-looking illustrations, are provided for illustrative purposes only and are not forecasts of Barclays’ results of operations or capital position or otherwise. Illustrations regarding the capital flight path, end-state capital evolution and expectations and MREL build are based on certain assumptions applicable at the date of publication only which cannot be assured and are subject to change.

Non-IFRS performance measures

Barclays’ management believes that the non IFRS performance measures included in this presentation provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’ performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays’ management. However, any non-IFRS performance measures in this presentation are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix of the Barclays PLC Results Announcements for each of the periods ended 30 June 2021, 30 June 2023, 30 June 2025, 30 September 2025, 31 December 2025, 31 March 2026 and 30 June 2026, and the Group

Reporting Changes 2023 Results Resegmentation Document, respectively, which are available at Barclays.com, for further information and calculations of non-IFRS performance measures included throughout this presentation, and the most directly comparable IFRS measures.

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, business strategy, income levels, costs, assets and liabilities, impairment charges, provisions, capital leverage and other regulatory ratios, capital distributions (including policy on dividends and share buybacks), return on tangible equity, projected levels of growth in

8 banking and financial markets, industry trends, any commitments and targets (including sustainability-related commitments and targets), plans and objectives for future operations, International Financial Reporting Standards (“IFRS”) 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, regulations, governmental and regulatory policies, expectations and actions, voluntary codes of practices 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 sustainability reporting standards (including emissions accounting methodologies); changes in tax laws and practice; the outcome of current and future legal proceedings and regulatory investigations; the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively or navigate inconsistencies and conflicts in the manner in which climate policy is implemented in the regions where the Group operates, including as a result of the adoption of rules and regulations taking a different or opposing position on sustainability matters, or other forms of governmental and regulatory action against sustainability policies; environmental, social and geopolitical risks and incidents and similar events beyond the Group’s control; financial crime; the impact of competition in the banking and financial services industry; capital, liquidity, leverage and other regulatory rules and requirements 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; reforms to benchmark interest rates and indices; 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; changes in trade policy, including the imposition of tariffs or other protectionist measures; the direct and indirect consequences of the conflicts in the Middle East and Ukraine on European and global macroeconomic conditions, political stability and financial markets; changes in US legislation and policy; developments in the UK’s relationship with the European Union; the risk of cyberattacks, information or security breaches, technology failures or operational disruptions and any subsequent impact on the Group’s reputation, business or operations; the use of new technology, including artificial intelligence; the Group’s ability to access funding; and the success of acquisitions, disposals, joint ventures 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. In setting its targets and outlook for the period 2026-2028, Barclays has made certain assumptions about the macroeconomic environment, including, without limitation, inflation, interest and unemployment rates, the different markets and competitive conditions in which Barclays operates, and its ability to grow certain businesses and achieve costs savings and other structural actions. Additional risks and factors which may impact the Group’s future financial condition and performance are identified in Barclays PLC’s filings with the US Securities and

Exchange Commission (“SEC”) (including, without limitation, Barclays PLC’s Annual Report on Form 20-F for the financial year ended 31 December

2025), 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.

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