Barclays PLC (NYSE:BCS) Q3 2023 Earnings Call Transcript

Please go ahead. Your line is now open. Good morning. Thank you for squeezing me on two questions. One, hopefully very short. First question. You’re encouraging us to look at the group Nii, including the CIB. So perhaps you could just comment on the transaction. Banking revenues obviously up a lot year on year, but they are down Q on Q, which slightly bucks the trend versus what we’ve seen at US peers. So perhaps you could elaborate on what drove the Q and Q decline there. And then second and broader point on deposits and pricing just in relation to the 14 point FCA Action plan. I think their fair value assessment was due by the end of August. You had to provide details on communication and evidence, what you are providing to the consumer by end september.

I think the next big thing is this whole debate around on sale versus offsell, which comes in from the 31 July 2024. So anything you could say on on sale versus offsell, how big a bucket of offsell products you have, how the pricing compares, et cetera, et cetera. Thank you. Okay, so let me start in terms of transaction banking, did step back quarter on quarter, there was a relatively small impact from deposit migration. And again, I would say within corporate we’re seeing migration from our non interest bearing into interest bearing, but those deposits are remaining within the bank. So that’s certainly not the larger part of it. What we did see is an impact from the returns in our liquidity buffer. There’s nothing idiosyncratic going on. There more that for any liquidity buffer, the returns are in two parts.

The first is the carry, and then the second is, in any particular quarter, you would see some disposal income. In this environment, that disposal income has been very low. And given that much of that buffer income is actually attributed to transaction banking, it’s had a disproportionate impact in this quarter that will obviously move around a little bit. So we’ll see what happens through the Fourth. So on the consumer duty piece on SCA, we actually did our mailing through July and August in relation to savings. That was exactly, as you point out, designed to ensure that our customers are very much aware of the savings businesses that we have and the rates on offer. And increasingly, we see our customers using digital means to look and observe that anyway.

But that mailing is behind us. We will do a further mailing in November and December to our current accounts. And for us, off sale is relatively small, so I wouldn’t call it out as an impact. And okay, so with that, thank you, #####, for the #### rather for your final question. Really appreciate you attending the call today. Thank you for your continued interest.+