Barclays PLC

Alongside a consistent growth outlook, Barclays targets a modestly higher group cost base of approximately £17 billion by 2026 (2023 adjusted cost of £16 billion). This will be enabled by £2 billion of efficiencies the group plans to achieve under its strategic cost plan, which culminated in £927 million of cost-saving steps in the fourth quarter of 2023. In combination with a loan-loss rate of 45-60 basis points (bps) under our base case, we expect a return on tangible equity (RoTE) in excess of 11.0% by 2025. This is a solid return and gives Barclays good financial flexibility. The stable outlook indicates that we expect Barclays' credit metrics to remain robust over our two-year horizon. We anticipate that its well-diversified

... balance-sheet management support the rating. Barclays' strategic and geographical diversification has led the bank to generate solid earnings and maintain material excess capital. Its balance sheet has remained resilient to an uneven financial environment in its core markets. To this end, Barclays' lending book is in a strong position, its liquidity pool is dominated by central bank reserves, and its funding is granular and well diversified. Barclays' updated strategy and the elevated rates environment are driving a solid earnings outlook. The bank's updated strategic ambitions target relatively selective but brisk growth across its divisions in the next three years--notably in its U.K. heartland. Barclays' aims to push group revenue toward ú30 billion in 2026, from ú25.4 billion in 2024, and inflate risk-weighted assets (RWAs) by around ú50 billion over the period (ú30 billion in the U.K. businesses and ú20 billion in the U.S. consumer...

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