1 00:00:00,160 --> 00:00:03,400 Speaker 1: And we welcome our Bloomberg radio and television audience worldwide 2 00:00:03,440 --> 00:00:05,720 Speaker 1: right now, because yes, we are joined by the CEO 3 00:00:05,880 --> 00:00:10,360 Speaker 1: of Berkley's ESCs Ventech, Venkata Krishna. I practiced that so 4 00:00:10,360 --> 00:00:13,560 Speaker 1: many times he So give us a sense of what 5 00:00:13,840 --> 00:00:18,520 Speaker 1: the merger of Credit Suite with UBS means for you, 6 00:00:18,720 --> 00:00:21,840 Speaker 1: for the risks and opportunities you face at Barkleys right now. 7 00:00:22,200 --> 00:00:23,880 Speaker 2: Thank you, David, thank you for having me here. 8 00:00:24,400 --> 00:00:28,400 Speaker 3: I think Credit Suites and UBS's merger has two important consequences. 9 00:00:29,000 --> 00:00:30,880 Speaker 2: One for the financial system as a whole. 10 00:00:31,480 --> 00:00:36,400 Speaker 3: It has stabilized it because a slightly wobbly GCPY bank 11 00:00:36,800 --> 00:00:39,519 Speaker 3: is no longer there. It's absorbed into UBS in a 12 00:00:39,640 --> 00:00:43,519 Speaker 3: very solid transaction. The second is, as UBS develops its 13 00:00:43,560 --> 00:00:46,839 Speaker 3: business model, it will be for Barclays both an important 14 00:00:46,840 --> 00:00:49,879 Speaker 3: client for our markets business and a competitor for us 15 00:00:49,880 --> 00:00:52,960 Speaker 3: in investment banking. But that's the way all large banks 16 00:00:53,040 --> 00:00:54,360 Speaker 3: are with each other these days. 17 00:00:54,560 --> 00:00:56,600 Speaker 1: So so tell me about your business model. Overall, My 18 00:00:57,000 --> 00:01:00,520 Speaker 1: sense has been you've been marrying a global investment bank 19 00:01:00,720 --> 00:01:03,720 Speaker 1: with a very strong retail local presence in England with 20 00:01:03,880 --> 00:01:06,400 Speaker 1: posit taking. Is that the essence of your business model 21 00:01:06,400 --> 00:01:07,560 Speaker 1: and if so, is it working. 22 00:01:08,440 --> 00:01:11,480 Speaker 3: So the business model is working, that is the essence, 23 00:01:12,000 --> 00:01:15,280 Speaker 3: with a few important areas of growth and potential for us. 24 00:01:15,760 --> 00:01:18,679 Speaker 3: So we've got in the UK an ad scale, very 25 00:01:18,760 --> 00:01:22,880 Speaker 3: large consumer business cutting across everything. And then we've got 26 00:01:22,920 --> 00:01:26,520 Speaker 3: the sixth largest largest investment bank globally, which is the 27 00:01:26,600 --> 00:01:30,880 Speaker 3: top investment bank in both banking and markets trading outside 28 00:01:30,920 --> 00:01:34,000 Speaker 3: of the top five US banks. And that's a business 29 00:01:34,000 --> 00:01:36,080 Speaker 3: that has been growing and successful. 30 00:01:35,560 --> 00:01:36,640 Speaker 2: In gaining market share. 31 00:01:37,440 --> 00:01:42,440 Speaker 3: In addition, we've got three businesses which are smaller important 32 00:01:42,480 --> 00:01:45,400 Speaker 3: to us, but I think capable of great scaling and growth. 33 00:01:46,040 --> 00:01:48,120 Speaker 3: One is a wealth business in the UK, a private 34 00:01:48,120 --> 00:01:51,840 Speaker 3: bank in wealth business. The second is a fantastic cards 35 00:01:51,880 --> 00:01:55,160 Speaker 3: business here in the US, and then the third is 36 00:01:55,200 --> 00:01:59,680 Speaker 3: a UK and European merchant acquiring payments business, where we're 37 00:01:59,720 --> 00:02:02,040 Speaker 3: the only bank in the UK that both issues credit 38 00:02:02,040 --> 00:02:05,040 Speaker 3: cards and does acquisition of payments. 39 00:02:04,680 --> 00:02:07,320 Speaker 1: Mat How do you keep score? I mean one way 40 00:02:07,360 --> 00:02:09,000 Speaker 1: we look at it is price to book, and your 41 00:02:09,000 --> 00:02:10,880 Speaker 1: price to book right now is somewhere around point four 42 00:02:10,919 --> 00:02:13,440 Speaker 1: to four. You're lagging behind most of your competitors. Do 43 00:02:13,480 --> 00:02:15,080 Speaker 1: you pay attention to price to book? And if so, 44 00:02:15,280 --> 00:02:16,840 Speaker 1: how do you get that price to book back up. 45 00:02:17,440 --> 00:02:19,320 Speaker 3: So I pay a lot of attention to price to book. 46 00:02:19,360 --> 00:02:22,400 Speaker 3: It's probably the single most important metric for a bank, 47 00:02:23,080 --> 00:02:27,840 Speaker 3: and a bank's price to book is dependent on one 48 00:02:27,840 --> 00:02:30,359 Speaker 3: of two things, improving the quality of your assets or 49 00:02:30,400 --> 00:02:34,160 Speaker 3: improving your profitability. We have excellent assets, so it's our 50 00:02:34,200 --> 00:02:38,440 Speaker 3: profitability and the scaling of our profitability that we are 51 00:02:38,440 --> 00:02:42,040 Speaker 3: focused on. So within the UK consumer business and the 52 00:02:42,120 --> 00:02:44,600 Speaker 3: investment bank, as I said, we are at scale and 53 00:02:44,680 --> 00:02:47,720 Speaker 3: we look to continue to perform well, and then the 54 00:02:47,800 --> 00:02:50,360 Speaker 3: other three businesses are areas where we would like to 55 00:02:50,400 --> 00:02:55,000 Speaker 3: grow our scale. Our investment bank is about sixty percent 56 00:02:55,000 --> 00:02:57,000 Speaker 3: of the bank. In a way, it's been very successful 57 00:02:57,440 --> 00:02:59,959 Speaker 3: and what we would like to do is while keeping 58 00:03:00,080 --> 00:03:02,840 Speaker 3: its momentum, growing the rest of the bank outside of 59 00:03:02,840 --> 00:03:03,760 Speaker 3: the investment. 60 00:03:03,360 --> 00:03:05,400 Speaker 1: Then how much is investment are the bankers that you 61 00:03:05,440 --> 00:03:08,680 Speaker 1: have because you have had some exodus to Jeffries to 62 00:03:08,720 --> 00:03:12,080 Speaker 1: other places and you've remarked about it, Actually what is 63 00:03:12,080 --> 00:03:14,320 Speaker 1: the issue there? Why are you losing investment bankers? Are 64 00:03:14,320 --> 00:03:15,800 Speaker 1: you losing the ones you want to lose? 65 00:03:16,400 --> 00:03:19,040 Speaker 3: So, first of all, we are losing a few investment bankers, 66 00:03:19,080 --> 00:03:22,840 Speaker 3: but not that much more than what is normal annual turnover. 67 00:03:23,000 --> 00:03:25,600 Speaker 3: I mean this is the period in the first few 68 00:03:26,080 --> 00:03:28,760 Speaker 3: months of the second quarter when people have been paid 69 00:03:28,760 --> 00:03:30,960 Speaker 3: their bonuses and there's a little bit of musical chairs. 70 00:03:31,000 --> 00:03:34,000 Speaker 3: As you know, it's a time owner tradition in this industry. 71 00:03:35,440 --> 00:03:38,400 Speaker 3: We made a management change in our investment bank. We 72 00:03:38,920 --> 00:03:41,440 Speaker 3: spend a lot of time last year thinking about what 73 00:03:41,520 --> 00:03:46,360 Speaker 3: we expected the banking landscape to be over the next decade. 74 00:03:46,720 --> 00:03:50,360 Speaker 3: So what you've seen is rising interest rates, changing business models, 75 00:03:50,840 --> 00:03:53,840 Speaker 3: the importance of sectors that are fairly new to the economy, 76 00:03:54,040 --> 00:04:00,120 Speaker 3: not just technology, but sustainability, mobility, climate, tech, and then 77 00:04:00,400 --> 00:04:03,080 Speaker 3: there is just the different players and the importance of 78 00:04:03,080 --> 00:04:06,160 Speaker 3: the players in the banking market. The private equity groups 79 00:04:06,160 --> 00:04:08,960 Speaker 3: have been very large. Private credit funds are becoming bigger. 80 00:04:09,400 --> 00:04:13,040 Speaker 3: They are slightly disintermediating what banks are doing. And we 81 00:04:13,360 --> 00:04:16,800 Speaker 3: as we've began with a very American investment bank here 82 00:04:16,800 --> 00:04:19,320 Speaker 3: in the US based from the Lehman acquisition of Barclays, 83 00:04:19,600 --> 00:04:21,280 Speaker 3: and we have grown in Europe. We wanted to put 84 00:04:21,360 --> 00:04:24,279 Speaker 3: more emphasis in Europe as well. So you bring it 85 00:04:24,320 --> 00:04:28,560 Speaker 3: all together and you're talking about us thinking about the 86 00:04:28,600 --> 00:04:32,359 Speaker 3: next generation of leadership of the investment bank building on 87 00:04:32,400 --> 00:04:34,920 Speaker 3: our strengths in debt capital markets, but growing in equity, 88 00:04:35,000 --> 00:04:37,480 Speaker 3: is growing in m and A growing in Europe. And 89 00:04:37,520 --> 00:04:40,120 Speaker 3: when you do that kind of organizational change sometimes it 90 00:04:40,160 --> 00:04:40,760 Speaker 3: has impacts. 91 00:04:40,880 --> 00:04:43,080 Speaker 1: What you suggested something I was curious about it is 92 00:04:43,400 --> 00:04:46,280 Speaker 1: there a strategic shift in emphasis in the investment bank 93 00:04:46,600 --> 00:04:48,880 Speaker 1: a little bit away from the United States and toward Europe. Because, 94 00:04:48,880 --> 00:04:51,240 Speaker 1: as I recall, your two co heads before were based 95 00:04:51,240 --> 00:04:52,919 Speaker 1: in the United States. The two cohads now are gre 96 00:04:53,080 --> 00:04:53,800 Speaker 1: based in Europe. 97 00:04:54,160 --> 00:04:56,320 Speaker 3: One is in Europe and one is here in the US. 98 00:04:56,760 --> 00:04:59,960 Speaker 3: So it's not a shift so much as an expand. 99 00:05:01,000 --> 00:05:03,240 Speaker 3: It is to try to give more attention to Europe. 100 00:05:03,360 --> 00:05:07,560 Speaker 3: Relatively speaking, the US remains critically important to US and 101 00:05:07,600 --> 00:05:10,479 Speaker 3: the US businesses or some things, especially in the debt 102 00:05:10,480 --> 00:05:13,440 Speaker 3: capital markets, where we are absolutely leading and we want 103 00:05:13,480 --> 00:05:14,039 Speaker 3: to maintain that. 104 00:05:14,080 --> 00:05:16,960 Speaker 1: Position absolutely in debt coup of markets. What about equity? 105 00:05:17,040 --> 00:05:18,359 Speaker 1: Are you shifting toward equity? 106 00:05:18,839 --> 00:05:21,359 Speaker 3: We are trying to expand and grow our business in 107 00:05:21,400 --> 00:05:22,920 Speaker 3: both equities and advisory. 108 00:05:24,200 --> 00:05:26,960 Speaker 1: So talk about the US business specifically you mentioned it before, 109 00:05:27,000 --> 00:05:30,000 Speaker 1: particularly a credit card business. I think a lot of 110 00:05:30,000 --> 00:05:32,719 Speaker 1: people don't appreciate how big Barclays is in the United States. 111 00:05:32,800 --> 00:05:34,719 Speaker 1: How do you describe your business in the United States. 112 00:05:35,400 --> 00:05:38,240 Speaker 3: We have what is called a partnership credit card business. 113 00:05:38,400 --> 00:05:40,640 Speaker 3: So if you've got a Jet Blue credit card, it's 114 00:05:40,680 --> 00:05:44,520 Speaker 3: actually Barclays inside. So we don't market directly to consumers. 115 00:05:44,560 --> 00:05:47,200 Speaker 3: It's what they call B to B to see from 116 00:05:47,200 --> 00:05:50,840 Speaker 3: Barclays to businesses and through businesses to consumers. So we've 117 00:05:50,839 --> 00:05:55,000 Speaker 3: got a few very large, important corporate clients and we 118 00:05:55,080 --> 00:05:58,200 Speaker 3: manage their credit card businesses for them. Ultimately, we've got 119 00:05:58,240 --> 00:06:02,200 Speaker 3: twenty million customers and it's about the number five partnership 120 00:06:02,200 --> 00:06:06,040 Speaker 3: business in the US. But we spend a lot of 121 00:06:06,080 --> 00:06:09,080 Speaker 3: time trying to make that business better. And I think 122 00:06:09,120 --> 00:06:12,240 Speaker 3: we have a unique model because we don't otherwise really 123 00:06:12,240 --> 00:06:14,800 Speaker 3: have a retail presence in the US. So what we're 124 00:06:14,800 --> 00:06:17,120 Speaker 3: trying to do is work with our partners in this 125 00:06:17,200 --> 00:06:21,520 Speaker 3: credit card business to make their relationship with their customers strong. 126 00:06:21,760 --> 00:06:23,520 Speaker 1: Given your insight into the credit card business in the 127 00:06:23,640 --> 00:06:25,200 Speaker 1: United States, what do you make of the economy and 128 00:06:25,240 --> 00:06:28,320 Speaker 1: the consumer? I mean, are you seeing delinquency's uise? Are 129 00:06:28,320 --> 00:06:29,599 Speaker 1: you seeing some tightening your credit? 130 00:06:31,160 --> 00:06:34,360 Speaker 3: No, so we're seeing just on the margins some increase 131 00:06:34,400 --> 00:06:38,839 Speaker 3: in delinquencies we are seeing people continuing to economize. We 132 00:06:38,920 --> 00:06:40,960 Speaker 3: see that in the UK as well as in the US. 133 00:06:41,480 --> 00:06:44,440 Speaker 3: The most important thing is that employment is holding up, 134 00:06:44,960 --> 00:06:48,360 Speaker 3: and employment is one of the most important determinants of 135 00:06:48,440 --> 00:06:49,920 Speaker 3: individual credit behavior. 136 00:06:51,560 --> 00:06:53,960 Speaker 1: When you look at US expansion, where would you be 137 00:06:54,000 --> 00:06:55,200 Speaker 1: expanding If you're expanding and. 138 00:06:55,240 --> 00:06:58,000 Speaker 3: I said, I would love to grow our credit card 139 00:06:58,040 --> 00:07:01,839 Speaker 3: business even more, and then investment banking and trading businesses. 140 00:07:01,920 --> 00:07:02,840 Speaker 2: As I said, we are. 141 00:07:02,720 --> 00:07:06,919 Speaker 3: The largest non US bank, but there's always room to 142 00:07:06,920 --> 00:07:08,599 Speaker 3: increase our market share and our reaching. 143 00:07:08,800 --> 00:07:10,480 Speaker 1: There's been a little bit of the shaking up, if 144 00:07:10,520 --> 00:07:11,880 Speaker 1: I can put it that way, in the US banking 145 00:07:11,880 --> 00:07:14,200 Speaker 1: system with some of the regional banks, starting with Silicon 146 00:07:14,280 --> 00:07:17,040 Speaker 1: Valley Bank. What do you make of that situation? More broadly, 147 00:07:17,080 --> 00:07:19,480 Speaker 1: do you expect more bank failures in the United States? 148 00:07:21,240 --> 00:07:23,920 Speaker 3: I'm not sure I expect failures. What I expect is 149 00:07:24,000 --> 00:07:27,840 Speaker 3: concerns and banks cleaning up their act if you like. So, 150 00:07:27,960 --> 00:07:31,040 Speaker 3: banks which have asset liability problems will go get ahead 151 00:07:31,040 --> 00:07:31,200 Speaker 3: of it. 152 00:07:31,240 --> 00:07:32,440 Speaker 2: They will try to sell assets. 153 00:07:32,920 --> 00:07:35,480 Speaker 3: I think the net effect of it will be a 154 00:07:35,600 --> 00:07:40,480 Speaker 3: curtailment or diminishment of lending, especially in Middle America where 155 00:07:40,520 --> 00:07:42,800 Speaker 3: the regional banks have a footprint. 156 00:07:42,840 --> 00:07:44,680 Speaker 1: Are you tightening your credit standards right now? 157 00:07:45,480 --> 00:07:48,200 Speaker 3: So the big banks, I think all tightened our wholesale 158 00:07:48,240 --> 00:07:52,400 Speaker 3: credit standards through the leverage finance business last year, and 159 00:07:53,080 --> 00:07:55,720 Speaker 3: you know there were many large loans, some didn't get placed, 160 00:07:56,000 --> 00:07:58,960 Speaker 3: and so the wholesale banks, with rising rates tightened their 161 00:07:58,960 --> 00:08:03,000 Speaker 3: credit standards. The retail standards, we have tightened it, but 162 00:08:03,320 --> 00:08:06,320 Speaker 3: they are marginally tighter than they were said during COVID. 163 00:08:06,960 --> 00:08:09,360 Speaker 3: I think what you're going to see in the regional 164 00:08:09,400 --> 00:08:12,400 Speaker 3: banks is a tightening of credit standards in areas like 165 00:08:12,400 --> 00:08:16,200 Speaker 3: commercial real estate, small business lending, the things that they do. 166 00:08:16,360 --> 00:08:18,600 Speaker 1: So you may said the magic words commercial real estate. 167 00:08:18,800 --> 00:08:20,640 Speaker 1: How exposed is Barclay commercial real estate? 168 00:08:20,640 --> 00:08:22,200 Speaker 2: First of all, not very much. 169 00:08:22,320 --> 00:08:25,880 Speaker 3: We do some direct lending in the UK, but it's small. 170 00:08:26,440 --> 00:08:30,280 Speaker 3: And in the US we mostly finance vehicles or portfolios 171 00:08:30,640 --> 00:08:35,880 Speaker 3: of commercial real estate assets, but we have adequate protection 172 00:08:36,600 --> 00:08:40,200 Speaker 3: in terms of first loss protections and loan to values. 173 00:08:40,280 --> 00:08:42,720 Speaker 1: There are some fairly substantial assets that probably have not 174 00:08:42,760 --> 00:08:45,160 Speaker 1: been marked to market yet, particularly in the commercial real 175 00:08:45,280 --> 00:08:47,640 Speaker 1: estate area. What is the likely effect of that to 176 00:08:47,640 --> 00:08:49,360 Speaker 1: be on the banking system in the United States, but 177 00:08:49,400 --> 00:08:50,680 Speaker 1: also more broadly on the economy. 178 00:08:52,080 --> 00:08:54,600 Speaker 3: So I think two things will happen. As they get 179 00:08:54,640 --> 00:08:58,280 Speaker 3: marked down. Some lenders and some investors will be exposed. 180 00:08:58,640 --> 00:09:01,800 Speaker 3: Hopefully it's equity ands and people who invest in them 181 00:09:01,800 --> 00:09:04,679 Speaker 3: through head funds or private equity vehicles. Then there will 182 00:09:04,760 --> 00:09:08,200 Speaker 3: be banks who might get exposed. And then ultimately I think, 183 00:09:08,240 --> 00:09:10,960 Speaker 3: as in all real estate cycles, there will be a 184 00:09:11,240 --> 00:09:14,800 Speaker 3: surplus of supply, meaning empty buildings, and then over time 185 00:09:14,840 --> 00:09:15,840 Speaker 3: that will adjust itself. 186 00:09:15,880 --> 00:09:17,760 Speaker 1: We're about to hear from the Federal Reserve this week, 187 00:09:17,800 --> 00:09:19,600 Speaker 1: as well as the European Central Bank as well as 188 00:09:19,640 --> 00:09:22,480 Speaker 1: the Bank of England. How do the increased rates the 189 00:09:22,559 --> 00:09:25,360 Speaker 1: higher rates affect Barclays. Does that help your business hurt 190 00:09:25,400 --> 00:09:27,559 Speaker 1: your business? What are the variabilities there? 191 00:09:27,840 --> 00:09:31,320 Speaker 3: So it helps the business in most banks in terms 192 00:09:31,360 --> 00:09:33,840 Speaker 3: of what we call on net interest margin, which is 193 00:09:33,880 --> 00:09:40,640 Speaker 3: the money we make by lending lending our money. Where 194 00:09:40,679 --> 00:09:43,560 Speaker 3: it hurts us is in the change in interest rates. 195 00:09:44,080 --> 00:09:47,240 Speaker 3: It can unsettled business models, and that's what you're seeing 196 00:09:47,280 --> 00:09:49,320 Speaker 3: as people are just to higher rates and hire information 197 00:09:49,880 --> 00:09:52,640 Speaker 3: and then at that point deal volume tends to shrink. 198 00:09:53,160 --> 00:09:55,040 Speaker 3: On the other hand, if there's a lot of volatility, 199 00:09:55,080 --> 00:09:56,439 Speaker 3: our trading businesses do well. 200 00:09:56,960 --> 00:09:59,000 Speaker 1: It strucks me that you are. You have been a 201 00:09:59,040 --> 00:10:02,120 Speaker 1: credit risk manager back at JP Morgan and then as 202 00:10:02,120 --> 00:10:04,760 Speaker 1: you went over to Barclays. You know how to manage risk, 203 00:10:04,840 --> 00:10:07,400 Speaker 1: control risk. We've seen a fair amount of risk recently 204 00:10:07,400 --> 00:10:10,040 Speaker 1: coming from odd places. I mean, Jeffrey Epstein with respect 205 00:10:10,040 --> 00:10:13,320 Speaker 1: to private wealth. We've seen it just with chrispin Odey 206 00:10:13,360 --> 00:10:16,280 Speaker 1: over in the UK with prime brokerage. You're pretty big 207 00:10:16,320 --> 00:10:19,120 Speaker 1: in prime brokerage. We saw before with the archaegoes. How 208 00:10:19,160 --> 00:10:22,079 Speaker 1: do you manage for very very large clients like that? 209 00:10:22,440 --> 00:10:25,000 Speaker 1: Who I can output it go off the rails. 210 00:10:25,920 --> 00:10:29,560 Speaker 3: David, It's a very difficult question. It's a very important question. 211 00:10:30,200 --> 00:10:32,720 Speaker 3: At the heart of our business. We are dealing with people, 212 00:10:33,440 --> 00:10:36,120 Speaker 3: and assessing the people. Know your client, as they say, 213 00:10:36,280 --> 00:10:40,280 Speaker 3: is really important. I think, on the one hand, we 214 00:10:40,480 --> 00:10:43,480 Speaker 3: like to see successful people and work with them. We 215 00:10:43,600 --> 00:10:46,599 Speaker 3: also believe in generally, we believe in the goodness of 216 00:10:46,679 --> 00:10:49,120 Speaker 3: human character, and we believe in human redemption. 217 00:10:49,880 --> 00:10:51,320 Speaker 2: On the other hand, you've. 218 00:10:51,080 --> 00:10:54,679 Speaker 3: Got to be fairly clinical about the reputational risks some 219 00:10:54,720 --> 00:10:58,000 Speaker 3: of these people pose to our businesses. So I think 220 00:10:58,040 --> 00:11:01,360 Speaker 3: it's important to assess your client, you onboard them and 221 00:11:01,440 --> 00:11:05,040 Speaker 3: assess them periodically and be very hard knows if there's 222 00:11:05,080 --> 00:11:05,560 Speaker 3: bad news. 223 00:11:05,800 --> 00:11:07,679 Speaker 1: I want to come back if I could refer to 224 00:11:07,720 --> 00:11:09,480 Speaker 1: something you said when we talk about price to book, 225 00:11:09,480 --> 00:11:12,320 Speaker 1: you said, it's really profitability. That's the question my experience 226 00:11:12,360 --> 00:11:14,800 Speaker 1: is you get profitability up one of two ways, maybe both, 227 00:11:14,840 --> 00:11:17,920 Speaker 1: which is increase the top line or cut the costs. 228 00:11:18,640 --> 00:11:22,520 Speaker 1: For Barclays, where is the greatest opportunity. Is it cutting costs, 229 00:11:22,600 --> 00:11:24,320 Speaker 1: is it increasing the top line or do you have 230 00:11:24,360 --> 00:11:24,840 Speaker 1: to do both? 231 00:11:25,520 --> 00:11:27,440 Speaker 3: So, first of all, we are a very profitable bank. 232 00:11:27,720 --> 00:11:31,480 Speaker 3: We just need to be more profitable and we've had many, 233 00:11:31,480 --> 00:11:34,960 Speaker 3: many quarters of successive and continuous profitability. I think we 234 00:11:35,040 --> 00:11:37,160 Speaker 3: have to do both. I think there are opportunities in 235 00:11:37,200 --> 00:11:39,640 Speaker 3: the business. Where As I said to you, there's an 236 00:11:39,679 --> 00:11:42,720 Speaker 3: opportunity for top line growth in certain businesses, and I 237 00:11:42,760 --> 00:11:45,080 Speaker 3: think in this environment you've got to be cautious on 238 00:11:45,160 --> 00:11:48,120 Speaker 3: costs and particularly how much scaling you can get from 239 00:11:48,120 --> 00:11:50,000 Speaker 3: technology in our consumer businesses. 240 00:11:50,200 --> 00:11:52,000 Speaker 2: It's something we've been doing a lot in the UK. 241 00:11:52,320 --> 00:11:55,400 Speaker 1: Well, what about the technology last question AI? We hear 242 00:11:55,400 --> 00:11:58,040 Speaker 1: a lot about generative AI. What does that hold out 243 00:11:58,120 --> 00:12:00,000 Speaker 1: for Barclays as potential opportunity? 244 00:12:00,920 --> 00:12:04,880 Speaker 3: Tremendous potential in how you service your clients, how you 245 00:12:05,080 --> 00:12:10,480 Speaker 3: produce documents, and how you sort of manage the business. Equally, 246 00:12:10,960 --> 00:12:14,200 Speaker 3: we are a large regulated institution with very strict controls 247 00:12:14,200 --> 00:12:16,720 Speaker 3: over information, so we've got to make sure we use 248 00:12:16,760 --> 00:12:17,480 Speaker 3: it in the right way. 249 00:12:17,679 --> 00:12:19,840 Speaker 1: Are there particular challenges in Europe when it comes to that. 250 00:12:20,400 --> 00:12:23,440 Speaker 3: Yes, so GDPR is an issue in Europe, but I 251 00:12:23,440 --> 00:12:26,079 Speaker 3: think more generally consumer protection laws are a little more 252 00:12:26,120 --> 00:12:28,360 Speaker 3: cautious and we've got to be sure that we are 253 00:12:28,400 --> 00:12:29,040 Speaker 3: here to all of that. 254 00:12:29,400 --> 00:12:30,000 Speaker 2: It's fascinating. 255 00:12:30,040 --> 00:12:32,040 Speaker 1: Thank you so much, really appreciate thank it's great to 256 00:12:32,040 --> 00:12:35,239 Speaker 1: have you with us. That is cs ven Kenta Krishnan. 257 00:12:35,400 --> 00:12:36,920 Speaker 1: He is Barkley's CEO.