Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (August 2019)
24 slides from Barclays's debt investor presentation, Aug 1, 2019
Slide 1: Barclays PLC Fixed Income Investor Call
Barclays PLC Fixed Income Investor Call H1 2019 Results Announcement 1 August 2019
Slide 2: Tushar Morzaria, Group Finance Director
Tushar Morzaria Barclays Group Finance Director
Slide 3: Q219 Group highlights
Q219 Group highlights Generated £1.1bn of attributable profit and 40bps of reported CET1 ratio accretion Financial performance1 Income • Income decreased 1%, reflecting the challenging income environment £5.5bn Q218: £5.6bn Costs • Q219 costs of £3.5bn demonstrated continued cost discipline, while i
Slide 4: Kathryn McLeland, Group Treasurer
Kathryn McLeland Group Treasurer
Slide 5: H119 highlights
H119 highlights Strong financial position across key metrics Key principles Key metrics Prudently managing the Group’s capital position; Capital CET1 ratio of 13.4% at target Strong progress towards meeting MREL requirement; Funding HoldCo MREL ratio of 30.2% diversified across currencies Liquidity
Slide 6: CET1 ratio progression
CET1 ratio progression 13.4% with strong capital generation from profits CET1 ratio1 £0.6bn £43.6bn £0.7bn • CET1 ratio of 13.4%, due to: £0.4bn £0.2bn 22bps 13.7% 22bps £42.9bn – 38bps of profits generated in £1.2bn £0.2bn 5bps 6bps 11bps 13.4% the quarter £43.6bn – 11bps due to FVOCI reserve 38bps
Slide 7: Strong capital position
Strong capital position Well positioned on capital: above target CET1 ratio and manageable near term regulatory headwinds Continue to manage CET1 ratio to meet requirements • We manage the Group’s capital to remain above the regulatory Q219 CET1 ratio1 minimums, to pass stress tests and, for risk-ba
Slide 8: Demonstrated ability to pass stress tests
Demonstrated ability to pass stress tests Q219 CET1 ratio: 13.4% Favourable drawdown in 2018 BoE stress test compared to c.13% target 2017, reflecting de-risking and reduced CET1 headwinds MDR hurdle BoE stress test hurdle rate for 2018 test 2018 2017 stress test stress test Distance to hurdle rate
Slide 9: Managing evolving future Group minimum leverage requirements
Managing evolving future Group minimum leverage requirements Minimum leverage requirements and buffers under the UK regime • We continue to view leverage as a backstop measure in Q219 UK leverage ratio determining the capital Barclays holds. Our business mix means the 5.1% risk based RWA measure of
Slide 10: Strong legal entity capital and liquidity positions
Strong legal entity capital and liquidity positions Group expects to accommodate all legal entity capital requirements within Group CET1 ratio target of c.13% Barclays PLC Accounting and regulated sub-group Accounting sub-group Barclays Bank UK PLC sub-group Barclays Bank PLC sub-group Barclays Bank
Slide 11: Transition to 2022 capital structure well established
Transition to 2022 capital structure well established Expect to hold prudent headroom above AT1 and Tier 2 minimums Illustrative evolution of regulatory capital structure Well managed and balanced total capital structure • BBPLC issued capital instruments are expected to be included as 21.4% MREL, u
Slide 12: Successfully transitioning to a HoldCo funding model
Successfully transitioning to a HoldCo funding model Continue to expect c.£8bn of MREL issuance in 2019 of which c.£7bn equivalent issued to date HoldCo MREL position and expected requirement Well advanced on HoldCo issuance plan • Issued £7.1bn equivalent of MREL year to date towards the 2019 30.2%
Slide 13: High quality liquidity position
High quality liquidity position Conservatively positioned liquidity pool, LDR and lower reliance on short-term wholesale funding Highly liquid, comfortably exceeding minimum requirement Conservative loan: deposit ratio2 Loans and advances3 (£bn) Deposits3 (£bn) LDR Liquidity Coverage Ratio (LCR) 83%
Slide 14: Ratings remain a key priority
Ratings remain a key priority Focus on strategy execution and achieving performance targets to improve ratings Current Senior Long and We solicit ratings from S&P, Fitch and Moody’s for Standard & Poor’s Fitch Moody’s Short Term ratings the HoldCo and both its OpCos that sit immediately beneath it.
Slide 15: Focus on ESG
Focus on ESG Growing momentum on key Environmental, Social and Governance factors across the firm Progress on key ESG factors Sustainability & Citizenship Commitments • Continued to build green and sustainable finance platform across Capital and Products business lines • Released Energy and Climate
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix
Slide 18: Strong Group CET1 and leverage ratios
Strong Group CET1 and leverage ratios Fully loaded and transitional CET1 ratio Fully loaded CET1 ratio IFRS 9 transitional benefit • Transitional CET1 ratio increased from 13.0% to 13.4% in the quarter, reflecting: 13.3%1 13.2%1 13.0%1 13.4%1 12.4% – 38bps of organic capital generation from profits
Slide 19: Continued progress in HoldCo issuance
Continued progress in HoldCo issuance HoldCo issuance by year1 (£bn) H119 HoldCo issuance by currency3 AT1 T2 Senior unsecured 13.4 12.1 12.2 March: USD 2bn AT1 11.5 6.2 FY Target: c.8 6.1 April: USD 750m Senior tap 9.3 10.2 1.8 3.4 2.9 YTD: 7.1 May: USD 2bn Senior 5.4 1.2 1.7 2.5 1.9 2.5 1.1 As at
Slide 20: Managing the call and maturity profiles of BPLC and BBPLC capital instruments
Managing the call and maturity profiles of BPLC and BBPLC capital instruments BPLC capital call and maturity profile (£bn) BPLC AT1 capital as at 30 June 20191 BPLC T2 capital as at 30 June 20191 • First AT1 call effected on Announced First call date By contractual maturity as applicable By next cal
Slide 21: Balanced HoldCo funding profile by debt class and tenor
Balanced HoldCo funding profile by debt class and tenor Barclays PLC AT1 Tier 2 Senior 14% 22% By product £56bn 64% BPLC AT1 capital BPLC T2 capital BPLC Senior unsecured debt as at 30 June 20191 as at 30 June 20191 as at 30 June 20191 First call date By contractual maturity as applicable By next ca
Slide 22: Diversified Funding Sources across all legal entities
Diversified Funding Sources across all legal entities1 Majority of funding within legal entities through deposits Barclays PLC 55 28 8% 4% 414 71 11% 63% H119: 4% 23 £659bn2 9% 56 2% Barclays Bank UK PLC 3 Barclays Bank PLC 3 13 Key: 15 2 43 1% 10 Deposits 6% 4% 11% 26 11 Shareholders’ equity 4% 8%
Slide 23: Preparation for continuity of business in the event of Brexit
Preparation for continuity of business in the event of Brexit Plans have been implemented to support activity with European clients through expanded Barclays Bank Ireland • Barclays Bank Ireland (BBI) is now fully operational and Indicative BBI as at 31 December 20182 significant activity with Europ
Slide 24: Disclaimer
Disclaimer Important Notice The terms Barclays or Barclays 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 of