Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (February 2020)
23 slides from Barclays's debt investor presentation, Feb 13, 2020
Slide 1: Barclays PLC Fixed Income Investor Call
Barclays PLC Fixed Income Investor Call FY 2019 Results Announcement 13 February 2020
Slide 2: Tushar Morzaria, Barclays Group Finance Director
Tushar Morzaria Barclays Group Finance Director
Slide 3: FY19 Group highlights
FY19 Group highlights Delivered on FY19 Group RoTE target and cost guidance, while increasing capital distribution to shareholders • Income increased 2%, reflecting resilient Financial performance1 performance in Barclays UK and growth in CIB RoTE1 Income and CC&P Q1 Q2 Q3 Q4 FY19 £21.6bn FY18: £21.
Slide 4: Kathryn McLeland, Group Treasurer
Kathryn McLeland Group Treasurer
Slide 5: FY19 highlights
FY19 highlights Strong financial position across key metrics Key principles Key metrics Prudently managing the Group’s capital position; Capital CET1 ratio of 13.8%; target remains c.13.5% Strong progress towards meeting MREL requirement; Funding HoldCo MREL ratio of 31.2% diversified across currenc
Slide 6: YoY CET1 ratio progression
YoY CET1 ratio progression CET1 ratio1 • CET1 ratio of 13.8% reflecting: − 63bps from the benefit of 76bps removing the operational 15bps risk RWA floor 161bps 13bps 10bps 10bps − 161bps of profits generated in the year 56bps − 10bps of RWA and other movements 63bps • Offset by: − 76bps for dividend
Slide 7: Prudently managing the Group's capital position
Prudently managing the Group’s capital position Group’s CET1 managed to be prudently above the regulatory minimum and to pass stress tests Illustrative evolution of minimum CET1 requirements and buffers FY19 CET1 ratio1 13.8% • Barclays’ headroom to the MDA hurdle is intended to absorb fluctuations
Slide 8: Demonstrated ability to pass stress tests
Demonstrated ability to pass stress tests Favourable drawdown in 2019 BoE stress test compared to major UK peers FY19 CET1 ratio 13.8% Barclays Bank A Bank B Bank C c.13.5% target Headroom MDA hurdle 12.1% (4.3%) (5.1%) (5.9%) (6.1%) 2019 BoE stress test 430bps drawdown to 8.9%1 Stress headroom Stre
Slide 9: Prudently managed leverage ratio
Prudently managed leverage ratio A material portion of our leverage exposure is short term or liquid in nature Minimum leverage requirements and Proven ability to dynamically manage our leverage exposure buffers under the UK regime • We deploy a material portion of leverage balance sheet into short
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.13.5% Barclays PLC Accounting and regulated sub-group Accounting sub-group Barclays Bank UK PLC sub-group Barclays Bank PLC sub-group Barclays Ba
Slide 11: Capital structure well established
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 ≥17.9% • BBPLC issued capital instruments are expected to be included as MREL, 21.6% until 1 Janua
Slide 12: Successfully transitioning to a HoldCo funding model
Successfully transitioning to a HoldCo funding model Currently expect £7-8bn of MREL issuance in 2020 HoldCo MREL position and expected requirement Well advanced on 2022 HoldCo issuance plan • Issued £8.6bn equivalent of MREL in 2019 in Senior, AT1 and Tier 2, in 31.2% 31.3% line with the 2019 HoldC
Slide 13: High quality liquidity position
High quality liquidity position Prudently positioned liquidity pool, LDR and lower reliance on short-term wholesale funding Highly liquid, comfortably exceeding minimum requirement Conservative loan: deposit ratio2 L&A3 (£bn) Deposits3 (£bn) LDR Liquidity Coverage Ratio (LCR) 83% 83% 83% 82% 82% 169
Slide 14: Ratings remain a key priority
Ratings remain a key priority Focus on strategy execution and performance targets to improve ratings Current Senior Long and We solicit ratings from Moody’s, S&P and Fitch for Moody’s Standard & Poor’s Fitch Short Term ratings the HoldCo and both its OpCos that sit immediately beneath it. • Moody’s
Slide 15: ESG Highlights – Group Treasurer's perspective
ESG Highlights – Group Treasurer’s perspective Managing ESG factors to strengthen our franchise and deliver sustainable returns for all our stakeholders Group Treasury ESG highlights and commitments Green bond issuance Green bond investments Climate risk incorporated • Updated Green Bond • We contin
Slide 16: Tushar Morzaria, Barclays Group Finance Director
Tushar Morzaria Barclays Group Finance Director
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Managing evolving future Group minimum leverage requirements
Managing evolving future Group minimum leverage requirements Minimum leverage requirements and buffers under the UK regime Q419 UK leverage ratios1: • The RWA based CET1 ratio remains our primary regulatory constraint Spot: 5.1% • The Group currently has one leverage requirement, as Average: 4.5% me
Slide 20: Continued progress in HoldCo issuance
Continued progress in HoldCo issuance Annual HoldCo issuance volume materially lower vs 2016-18 (£bn)1 2019 HoldCo issuance by currency3 AT1 Tier 2 Senior unsecured 13.4 12.1 12.2 March: USD 2bn AT1 11.5 6.2 8.6 April: USD 750m Senior tap 6.1 Target: 7-8 9.3 10.2 1.8 4.0 May: USD 2bn Senior 2.9 1.1
Slide 21: 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 31 December 20191 BPLC Tier 2 capital as at 31 December 20191 • Redemption of three AT1 First or next call date By contractual maturity as applicable By n
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 54 26 8% 4% 416 67 65% 11% FY19: 2% 12 £640bn2 8% 52 2% Barclays Bank UK PLC 3 Barclays Bank PLC 3 13 14 1 42 0% 8 Key: 6% 3% 11% 25 10 4% Deposits 11 5% 4% Shareholders’ eq
Slide 23: Disclaimer
Disclaimer Important Notice The terms Barclays or 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 offer to bu
Barclays — Debt Investor Presentation (February 2020) on 6ix