Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (March 2016)
24 slides from Barclays's debt investor presentation, Mar 1, 2016
Slide 1: Barclays PLC Fixed Income Investor Call FY 2015 Results Announcement
Barclays PLC Fixed Income Investor Call FY 2015 Results Announcement 1 March 2016 | Barclays Fixed Income Investor FY 2015 Results Call I 1 March 2016
Slide 2: Tushar Morzaria, Barclays Group Finance Director
Tushar Morzaria Barclays Group Finance Director | Barclays Fixed Income Investor FY 2015 Results Call I 1 March 2016
Slide 3: Management focus to deliver value
Management focus to deliver value Transatlantic Consumer, Corporate and Investment Bank Measures to deliver strategy and manage legacy headwinds Accelerate Non-Core rundown. Flexibility to fund the accelerated Barclays UK Barclays Corporate & International rundown provided by plan to pay a dividend
Slide 4: Financial highlights
Financial highlights Solid performance in the Core and continued Non-Core rundown Core business performed well, adjusted PBT of £6.9bn, up 3%, and RoTE of 10.9% Non-Core RWAs reduced £29bn to £47bn Strong capital generation of 110bps, taking the CET1 ratio to 11.4% Costs excluding CTA of £16.2bn, do
Slide 5: Dan Hodge, Barclays Group Treasurer
Dan Hodge Barclays Group Treasurer | Barclays Fixed Income Investor FY 2015 Results Call I 1 March 2016
Slide 6: Continued strengthening of key capital metrics
Continued strengthening of key capital metrics Fully-loaded CET1 ratio5 • CET1 ratio of 11.4% as at December 2015, an improvement 230bps of 230bps in 24 months − After absorbing c.150bps impact of significant conduct and litigation, and c.60bps of paid and foreseen dividends 110bps Significant condu
Slide 7: Managing evolving future minimum CET1 levels
Managing evolving future minimum CET1 levels Illustrative evolution of minimum CET1 requirements and buffers8 Minimum CRD IV CET1 requirement Counter Cyclical Buffer (CCyB) assumption10 CET1 minimum levels and internal management buffer 2016 Pillar 2A CET1 requirement9 BoE stress test hurdle for 201
Slide 8: Managing capital position for regulatory minimum levels and stress testing
Managing capital position for regulatory minimum levels and stress testing Barclays‟ expected BoE CET1 stress test hurdles12, 8 Minimum CRD IV CET1 requirement Counter Cyclical Buffer (CCyB) assumption10 2016 Pillar 2A CET1 requirement9 Mandatory distribution restrictions hurdle rates G-SIB buffer B
Slide 9: Confident in our ability to accrete capital going forward
Confident in our ability to accrete capital going forward 1 Core divisions generated 1 double digit adjusted RoTEs in 20151 Expect considerable CET1 cushion to absorb potential headwinds and grow Accelerated rundown of Non-Core, high-returning businesses 2 2 guiding to RWAs of £20bn by end 2017 whil
Slide 10: Well positioned to meet future MREL/TLAC requirements
Well positioned to meet future MREL/TLAC requirements Illustrative annual MREL/TLAC issuance volumes to meet future requirements15 • Proactive refinancing from HoldCo and liability management 23% exercises executed to date position us well for future TLAC requirement requirements +1.5% c.£6bn p.a. •
Slide 11: Maintaining a robust liquidity position and well diversified funding profile
Maintaining a robust liquidity position and well diversified funding profile High quality liquidity pool (£bn) Robust liquidity position LCR17 124% 133% • Stable liquidity position with the Group liquidity pool at £145bn, providing a 96% surplus to internal and external minimum requirements 149 145
Slide 12: Simplifying our business divisions for structural reform
Simplifying our business divisions for structural reform Barclays PLC21 Barclays Barclays UK Barclays Corporate & International BAGL Non-Core Focused UK consumer and Diversified transatlantic wholesale Announced business bank with scale and consumer bank intention to sell Focus on completion Divisio
Slide 13: Anticipated funding sources of future UK ring-fenced bank and Barclays Bank PLC
Anticipated funding sources of future UK ring-fenced bank and Barclays Bank PLC (and subsidiaries) Barclays PLC23 Barclays UK Barclays Corporate & International constructs Divisional Focused UK consumer and Diversified transatlantic wholesale business bank with scale and consumer bank Formation of t
Slide 14: Demonstrating further strengthening of Barclays already solid credit profile
Demonstrating further strengthening of Barclays already solid credit profile24 • Transatlantic, Consumer, Corporate and Investment Bank, anchored in the Strategy driving materially two financial centres of the world, London and New York simplified and refocused Barclays • Focused on strong returning
Slide 15: Q&A
Q&A | Barclays Fixed Income Investor FY 2015 Results Call I 1 March 2016
Slide 16: Appendix
Appendix | Barclays Fixed Income Investor FY 2015 Results Call I 1 March 2016
Slide 17: TLAC and MREL requirement expectations
TLAC and MREL requirement expectations Pillar 1 TLAC minimum requirements and illustrative MREL expectations15 Pillar 1 requirements 2016 Pillar 2A requirement9 Assumed CRD IV combined buffer requirement BoE Recapitalisation amount TLAC MREL25 FY15 PRA Transitional total c.5% c.5% capital ratio: c.5
Slide 18: Continued progress on transition to HoldCo capital and funding model
Continued progress on transition to HoldCo capital and funding model PRA transitional regulatory capital Outstanding term vanilla senior unsecured debt (£bn) Dec-14 Dec-15 (£bn) Dec-14 Dec-15 PRA transitional Common Equity Tier 1 capital 40.9 40.7 Barclays PLC (HoldCo) term vanilla senior PRA transi
Slide 19: Focused on maintaining strong investment grade ratings
Focused on maintaining strong investment grade ratings • Barclays is committed to maintaining strong investment Ratings30 S&P Moody's Fitch grade ratings • All ratings carry a stable outlook across S&P, Moody‟s Standalone rating bbb+ baa2 a and Fitch • Industry-wide rating agency actions in 2015 wer
Slide 20: Barclays PLC parent company accounts
Barclays PLC parent company accounts Barclays PLC parent company balance sheet Key notes Balance sheet • Barclays PLC is the holding company of the Barclays Group As at As at • The HoldCo‟s primary assets currently are its investments in, and loans and 31 Dec-14 31 Dec-15 advances made to, its sole
Slide 21: UK approach to resolution
UK approach to resolution Illustrative UK resolution loss allocation waterfall31 OpCo waterfall Intercompany investments HoldCo waterfall • BRRD PONV write-down • Total OpCo losses are allocated to • Losses are transmitted to HoldCo • The loss on HoldCo‟s investment powers ensures OpCo OpCo investor
Slide 22: Disclaimer
Disclaimer Important Notice The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, any offer to sell or solicitation of an offer to buy any securities or financial instruments, or any advice or recommendation with re
Slide 23: Footnotes
Footnotes 1. Figures given are illustrative based on FY15 financials re-calculated on re-segmented basis. Illustrative financials are not a forecast of future metrics and may differ materially upon implementation of the future legal entity restructuring | 2. Including Head Office | 3. Implementation
Slide 24: Footnotes
Footnotes 17. LCR estimated based on the CRD IV rules as implemented by the European Commission delegated act | 18. LDR for PCB, Barclaycard, Africa Banking and Non-Core retail | 19. Excludes AT1 capital and preference shares | 20. Estimated based on the final BCBS rules published in October 2014 |