Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (February 2018)
25 slides from Barclays's debt investor presentation, Feb 22, 2018
Slide 1: Barclays PLC Fixed Income Investor Call
Barclays PLC Fixed Income Investor Call FY 2017 Results Announcement 22 February 2018 | Barclays FY 2017 Fixed Income Call Presentation | 22 February 2018
Slide 2: Tushar Morzaria, Group Finance Director
Tushar Morzaria Barclays Group Finance Director | Barclays FY 2017 Fixed Income Call Presentation | 22 February 2018
Slide 3: FY17 Group highlights
FY17 Group highlights A year of strong strategic progress and improved profitability Financial performance Strategic milestones achieved ahead of schedule Income 2% £21.1bn (FY16: £21.5bn) • Sell down of BAGL on 1 June 2017 • Non-Core closed on 1 July 2017 PBT 10% £3.5bn (FY16: £3.2bn) Improve
Slide 4: Diversified Transatlantic Consumer and Wholesale Bank
Diversified Transatlantic Consumer and Wholesale Bank Move from restructuring to Group returns targets Restructuring completed in 2017 Focus on Group returns targets Africa sell down completed RoTE1 >9% in 2019 >10% in 2020 Non-Core closed Group ServCo launched c.13% CET1 ratio 150-200 bps abo
Slide 5: Kathryn McLeland, Group Treasurer
Kathryn McLeland Group Treasurer | Barclays FY 2017 Fixed Income Call Presentation | 22 February 2018
Slide 6: Further improved CET1 and leverage ratios
Further improved CET1 and leverage ratios Fully loaded CET1 ratio • CET1 ratio increased by 90bps in the year to 13.3% driven largely by: 90bps − c.90bps of organic profit generation from continuing operations − c.60bps reflecting the proportional consolidation of BAGL to 14.9% and the associated re
Slide 7: Managing evolving future minimum CET1 levels
Managing evolving future minimum CET1 levels Illustrative evolution of minimum CET1 requirements and buffers Minimum CRD IV CET1 requirement Countercyclical Buffer (CCyB) • End-state CET1 ratio expectation of c.13% 2017 Pillar 2A CET1 requirement CRDIV Mandatory distribution restrictions (MDR) hurdl
Slide 8: Transition to CRD IV capital structure well established
Transition to CRD IV capital structure well established Illustrative evolution of CRD IV capital structure Well managed and balanced total capital structure 21.5% • Transitional total capital ratio increased to 21.5% (Dec-16: 19.6%), Total capital ratio while the fully loaded total capital ratio inc
Slide 9: MREL issuance remains on track
MREL issuance remains on track HoldCo MREL position and requirement including requisite buffers Well advanced on HoldCo issuance plan 2018 issuance plan – currently expect c.£10bn equivalent issuance 29.1% in 20182 CCyB: 0.5% • Issued £11.5bn equivalent of MREL in 2017, with maturities / call dates
Slide 10: High level of liquidity with a conservatively positioned liquidity pool
High level of liquidity with a conservatively positioned liquidity pool LCR continues to remain in prudential surplus • Liquidity pool increased £55bn in the year to £220bn, whilst LCR increased to 154% from 131%, equivalent to a surplus of 157% £75bn to the end state 100% requirement 154% • Increas
Slide 11: Robust group funding profile
Robust group funding profile Improved loan: deposit ratio (based on total retail and corporate funding) Conservative and stable funding profile (£bn) L&A to customers (£bn) Customer deposits (£bn) LDR Customer deposits Sub. Debt2 Secured term funding CD, CP and other deposits Unsecured term funding
Slide 12: Structural Reform Programme
Structural Reform Programme Final phase of ring-fencing execution and plans in place to serve EU clients post Brexit Ring-fencing requirements: Brexit preparation: Plans in place to expand Barclays Bank Ireland (BBI) in advance of Delivery on track for April 2018 migration March 2019 to support acti
Slide 13: Ratings remain a key strategic priority
Ratings remain a key strategic priority Current Senior Long and Future ratings expectations of BBUKPLC and BBPLC Fitch Moody’s Standard and Poor’s • Rating agencies have made various statements on Short Term ratings their expectation of ratings post ring-fencing − Fitch has assigned expected ratings
Slide 14: Group targets
Restructuring completed and focusing on group returns targets Group restructuring completed • Barclays Africa sell down completed >9% in 2019 RoTE1 • Non-Core closed six months early >10% in 2020 At our end state CET1 target Group targets c.13% Strong MREL build, and liquidity and CET1 ratio 1
Slide 15: Q&A
Q&A | Barclays FY 2017 Fixed Income Call Presentation | 22 February 2018
Slide 16: Appendix
Appendix | Barclays FY 2017 Fixed Income Call Presentation | 22 February 2018
Slide 17: Managing capital position above mandatory distribution restrictions and stress test hurdles
Managing capital position above mandatory distribution restrictions and stress test hurdles Barclays’ expected MDA thresholds and systemic reference points for 2017 BoE stress test Minimum CRD IV CET1 requirement Distribution restrictions and management buffer 2017 Pillar 2A CET1 requirement Future
Slide 18: Leverage requirements
Leverage requirements Requirements Disclosure obligations Basis of preparation 01 Jan 2018 01 Jan 2019 01 Jan 2022 FY17 Q118 onwards Today 01 Jan 20223 Pillar 1 3.25% 3.25% G-SIB 0.394% 0.525% FPC expected 1. Spot basis 1. Spot basis CCyB 0.2% to review the Per CRR2 less central bank UK regime and a
Slide 19: Proactive transition to HoldCo capital and funding model
Proactive transition to HoldCo capital and funding model HoldCo issuance by year1 Senior unsecured T2 AT1 Total: £11.5bn • The Group has continued to make strong HoldCo Snr: £6.1bn progress on its commitment to transition to T2: £2.9bn a HoldCo capital and term funding model AT1: £2.5bn during 2017
Slide 20: 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-17 Sep-17 (£bn) Dec-17 Sep-17 PRA transitional Common Equity Tier 1 capital 41.6 42.3 Barclays PLC (HoldCo) term vanilla senior unsecured
Slide 21: ADI position supports strong distribution capacity
ADI position supports strong distribution capacity Distribution capacity as at 31 December 2017 (£m) Distributable items ADI BPLC dividend payments BPLC AT1 coupons • BPLC has significant Available Distributable Items (ADIs)1 to cover dividends on ordinary shares and AT1 distributions c.5.9x dividen
Slide 22: P&L bridge from Barclays PLC consolidated to pro forma Barclays Bank PLC
P&L bridge from Barclays PLC (BPLC) consolidated to pro forma Barclays Bank PLC (BBPLC) post ring-fencing BPLC BPLC to BBPLC BBPLC Less pro forma Pro forma FY17 (£m) consolidated differences consolidated BBUKPLC BBPLC Total income 21,076 (139) 20,937 (7,087) 13,850 Credit impairment charges and othe
Slide 23: Breakdown of pro forma BBUKPLC and BBPLC P&Ls post ring-fencing
Breakdown of pro forma BBUKPLC and BBPLC P&Ls post ring-fencing o/w Head Office o/w Head Office o/w o/w o/w H117 Pro forma division and other Pro forma division and other FY17 (£m) Barclays UK Barclays Non-Core BBUKPLC consolidation BBPLC consolidation division Int'l division division1 adjustments a
Slide 24: Balance Sheet bridge to pro forma BBUKPLC and BBPLC post ring-fencing
Balance Sheet bridge to pro forma BBUKPLC and BBPLC post ring-fencing BPLC to o/w o/w BPLC BBPLC FY17 (£m) BBPLC pro forma pro forma consolidated consolidated differences BBUKPLC1 BBPLC1 Assets Cash, balances at central banks and financial investments 229,998 1 229,999 40,426 189,573 Reverse repurch
Slide 25: Disclaimer
Disclaimer Important Notice 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 offer to buy any securities or financial instruments, or any advice or recommendation with re
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