Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (February 2017)
21 slides from Barclays's debt investor presentation, Feb 23, 2017
Slide 1: Barclays PLC Fixed Income Investor Call FY 2016 Results
Barclays PLC Fixed Income Investor Call FY 2016 Results Announcement 23 February 2017 | Barclays FY 2016 Fixed Income Investor Results Call
Slide 2: Tushar Morzaria, Barclays Group Finance Director
Tushar Morzaria Barclays Group Finance Director | Barclays FY 2016 Fixed Income Investor Results Call
Slide 3: Strong evidence of strategic progress in 2016
Strong evidence of strategic progress in 2016 • Barclays UK 19.3% Strong Core business 9.4% Core RoTE1 • Barclays International 8.0% Non-Core rundown Accelerated progress, closing ahead of schedule Africa sell-down First stake sold and separation terms agreed Focused on generating attractive and Gro
Slide 4: Strong Core business performance in 2016
Strong Core business performance in 20162 Core Average allocated Income Cost: income ratio Profit before tax RoTE tangible equity £22.0bn 61% £6.4bn 9.4% £41.3bn 7% 1% 4% 1.8% £4.1bn Barclays UK Barclays International UK consumer and business bank differentiated by Diversified transatlantic wholesal
Slide 5: Dan Hodge, Barclays Group Treasurer
Dan Hodge Barclays Group Treasurer | Barclays FY 2016 Fixed Income Investor Results Call
Slide 6: Strong CET1 and leverage ratio progression
Strong CET1 and leverage ratio progression Fully Loaded CET1 ratio3 • The CET1 ratio increased to 12.4% (Dec-15: 11.4%) reflecting an increase in CET1 capital of £4.5bn to £45.2bn, despite RWAs increasing by £7bn to £366bn: – Increase in CET1 capital was largely driven by profits of £2.1bn generated
Slide 7: Managing evolving future minimum CET1 levels
Managing evolving future minimum CET1 levels Illustrative evolution of minimum CET1 requirements and buffers6 Minimum CRD IV CET1 requirement Mandatory distribution restrictions hurdle8 • New end-state expectation of 12.3-12.8% reflects: 2017 Pillar 2A CET1 requirement7 BoE stress test systemic refe
Slide 8: Manageable MREL requirements through proactive issuance
Manageable MREL requirements through proactive issuance12 HoldCo MREL position and requirements based on Nov-16 BoE policy statement12 HoldCo issuance plan of c.£10bn for 201713 Incremental • Our indicative MREL issuance for 2017 is c.£10bn of which HoldCo issuance we have already issued £4.7bn equi
Slide 9: Evolving CRD IV capital structure transitioning to HoldCo over time
Evolving CRD IV capital structure transitioning to HoldCo over time Illustrative evolution of CRD IV capital structure16 Well managed and balanced total capital structure • Transitional and fully-loaded total capital ratios both increased by 80bps in 19.6% Q4 16 to 19.6% (Sep-16: 18.8%) and 18.5% (S
Slide 10: High level of liquidity and conservative funding profile
High level of liquidity and conservative funding profile LCR18 continues to remain in prudential surplus Conservative and stable funding profile (£bn – excludes BAGL) Customer deposits Sub. Debt19 Secured term funding Short-term debt and other deposits Unsecured term funding 133% 131% 124% 125% £522
Slide 11: Structural reform plan is on track achieving critical milestones as planned
Structural reform plan is on track achieving critical milestones as planned H2 2017 Group Service Company setup H1 2018 Legal entity separation Milestones completed Milestones completed Legal entity re-positioned and rated Barclays UK and Barclays International established as operating divisions
Slide 12: Focused on delivery
Focused on delivery Continued to deliver Simplified our business and delivered strong underlying on Group strategy Core returns. Intend to close Non-Core ahead of schedule Further progress made CET1 ratio is now close to end-state expectation on balance sheet Efficient issuance and liability managem
Slide 13: Q&A
Q&A | Barclays FY 2016 Fixed Income Investor Results Call
Slide 14: Appendix
Appendix | Barclays FY 2016 Fixed Income Investor Results Call
Slide 15: Consistent delivery against strategy
Consistent delivery against strategy Announcing Non-Core closure six months early at June 2017 Africa sell-down on track with consistent capital guidance RWAs (£bn)21 As at Separation £765m phased 30 June 1 terms agreed contributions to BAGL agreed22 2017 Major 110 milestone 75 Regulatory Approval f
Slide 16: Ratings are a key strategic priority
Ratings are a key strategic priority Senior Long Term/ Rating priorities Fitch Standard & Poor’s Moody's Short Term ratings • Barclays is committed to maintaining solid investment grade ratings • We intend to create as much stability in the ratings Barclays PLC A BBB Baa2 of Barclays PLC and Barclay
Slide 17: Progress on Group legal structure
Progress on Group legal structure Barclays PLC29 Barclays UK Barclays International constructs Divisional UK consumer and business bank Diversified transatlantic wholesale differentiated by scale and digital innovation and consumer bank Group Service Company Provides critical services to Barclays UK
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-15 Dec-16 (£bn) Dec-15 Dec-16 PRA transitional Common Equity Tier 1 capital 40.7 45.2 Barclays PLC (HoldCo) term vanilla senior unsecured
Slide 19: Managing capital position above mandatory distribution restrictions and stress test hurdles
Managing capital position above mandatory distribution restrictions and stress test hurdles33 Barclays’ expected MDA thresholds and systemic reference points for 2017 BoE stress test9 Minimum CRD IV CET1 requirement Distribution restrictions and management • Maintaining a CET1 ratio comfortably abov
Slide 20: Footnotes
Footnotes 1 FY16 RoTEs excluding notable items| 2 All financial metrics are FY16 excluding notable items. Deltas represent the year-on-year change | 3 Based on Barclays’ interpretation of the current CRD IV text and EBA technical standard | 4 Assuming 31 December 2016 GBPZAR FX rate of 16.78 and BAG
Slide 21: 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
Barclays — Debt Investor Presentation (February 2017) on 6ix