Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (February 2019)
24 slides from Barclays's debt investor presentation, Feb 21, 2019
Slide 1: Barclays PLC Fixed Income Investor Call
Barclays PLC Fixed Income Investor Call FY 2018 Results Announcement 21 February 2019 | Barclays FY 2018 Fixed Income Investor Call | 21 February 2019 |
Slide 2: Tushar Morzaria, Group Finance Director
Tushar Morzaria Barclays Group Finance Director | Barclays FY 2018 Fixed Income Investor Call | 21 February 2019 |
Slide 3: FY18 Group highlights
FY18 Group highlights Group RoTE of 8.5%, excluding litigation and conduct, delivering improved shareholder returns Financial performance1 Improved RoTE of 8.5%, with profits up RoTE1 20% Income £21.1bn FY17 FY18 FY17: £21.1bn Positive jaws with lower absolute costs, despite investments Group3 8
Slide 4: Focused on profitability and capital targets
Focused on profitability and capital targets FY18 highlights Group targets >9% in 2019 Group RoTE of 8.5%1 RoTE2 >10% in 2020 CET1 CET1 ratio of 13.2% at target c.13% ratio3 66% Group cost: income ratio £13.6-13.9bn guidance for 20191 Costs with positive jaws1 Cost: income ratio <60% over time 1 Exc
Slide 5: Kathryn McLeland, Group Treasurer
Kathryn McLeland Group Treasurer | Barclays FY 2018 Fixed Income Investor Call | 21 February 2019 |
Slide 6: Strengthened financial position across key metrics
Strengthened financial position across key metrics Key principles Key metrics Prudently managing the Group’s capital position; Capital CET1 ratio of 13.2% at target Strong progress towards meeting MREL requirement; Funding HoldCo MREL ratio of 28.1% diversified across currencies Liquidity remains in
Slide 7: CET1 ratio progression
CET1 ratio progression 13.2% with strong capital generation and significant headwinds eliminated in 2018 CET1 ratio1 Eliminated significant L&C headwinds in Q118 16bps 140bps 53bps 33bps 9bps 13.9% 71bps 13.3% 13.2% Dec-17 Profits Dividends Redemption of Pension RWA and other Litigation Dec-18 (ex.
Slide 8: Strongly capital generative and at target CET1 ratio
Strongly capital generative and at target CET1 ratio Managing the Group CET1 ratio above the regulatory minimum level, to pass stress tests and absorb the PRA buffer FY18 CET1 ratio: 13.2% Favourable drawdown in 2018 BoE Stress Test compared to 2017, c.13% target reflecting de-risking and reduced CE
Slide 9: Strong legal entity capital positions
Strong legal entity capital 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 UK PLC (solus
Slide 10: Transition to CRD IV capital structure well established
Transition to CRD IV capital structure well established Expect to hold prudent headroom above AT1 and Tier 2 minimums Illustrative evolution of CRD IV capital structure Well managed and balanced total capital structure • BBPLC issued capital instruments are expected to qualify as 20.7% MREL, until 1
Slide 11: Continued progress in HoldCo issuance whilst diversifying the markets we access
Continued progress in HoldCo issuance whilst diversifying the markets we access 14% of issuance in 2018 was in non-G3 currencies HoldCo issuance and maturities/redemptions by year1 2018 HoldCo issuance by currency Senior unsecured Total: £12.2bn Total: (£2.4bn) T2 Total: £11.9bn HoldCo Snr: £10.2bn
Slide 12: Successfully transitioning to HoldCo funding model
Successfully transitioning to HoldCo funding model Currently expect c.£8bn of MREL issuance in 2019 HoldCo MREL position and expected requirement Well advanced on HoldCo issuance plan • Completed 2018 HoldCo issuance plan and partially pre-funded 30.0% 2019 plan in Q418 CCyB: 0.5% CCB: 2.5% • Issued
Slide 13: Diversified Funding Sources across all legal entities
Diversified Funding Sources across all legal entities1 Majority of funding within legal entities through deposits Barclays PLC 53 30 8% 5% 395 69 63% 11% Total: 3% 16 Barclays Bank UK PLC 3 £624bn2 Barclays Bank PLC 3 8% 49 15 2% 40 1 1% 10 12 Key: 6% 4% 10 11% 29 4% 11 Deposits 8% 5% Shareholders’
Slide 14: High quality liquidity position
High quality liquidity position Conservatively positioned liquidity pool, stable LDR and reduced reliance on short-term wholesale funding Highly liquid, comfortably exceeding minimum requirement Conservative loan: deposit ratio3 Loans and advances4 (£bn) Deposits4 (£bn) LDR Liquidity Coverage Ratio
Slide 15: Preparation for continuity of business in the event of Brexit
Preparation for continuity of business in the event of Brexit Plans in place to support activity with European clients through expanded Barclays Bank Ireland (BBI) Expect to be operational by March 2019 having received Pro-forma BBI as at 31 December 20182 Central Bank of Ireland approval to proce
Slide 16: 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 All ratings on stable outlooks Standard & Poor’s Fitch Moody’s Short Term ratings We solicit ratings from S&P, Fitch and Moody’s for the HoldCo and both its OpCos th
Slide 17: Q&A
Q&A | Barclays FY 2018 Fixed Income Investor Call | 21 February 2019 |
Slide 18: Appendix
Appendix | Barclays FY 2018 Fixed Income Investor Call | 21 February 2019 |
Slide 19: 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 was flat quarter-on-quarter at 13.2% • Transitional CET1 ratio decreased by 10bps in the year to 13.3% 13.2% 13.2%1 13.2% with: 12.4% 11.4% − 1
Slide 20: Prudently managing the Group's capital position
Prudently managing the Group’s capital position Managing the Group CET1 ratio above the regulatory minimum level, to pass stress tests and absorb the PRA buffer FY18 CET1 ratio: 13.2% Favourable drawdown in 2018 BoE stress test compared to major UK peers c.13% target Barclays Bank A Bank B Bank C He
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 20181 BPLC T2 capital as at 31 December 20181 • Whilst unable to comment on future calls 4.4 for specific instruments, the call and maturity 3
Slide 22: 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% 20% By product £49bn 66% BPLC AT1 capital BPLC T2 capital BPLC Senior unsecured debt as at 31 December 20181 as at 31 December 20181 as at 31 December 20181 4.4 12.3 2.3 6.4 2.1 5.2 4.6 0.9 0.8 2.6 3.0 1.1 1.6
Slide 23: Deposit and wholesale funding sources of Barclays Bank UK PLC and Barclays Bank PLC
Deposit and wholesale funding sources of Barclays Bank UK PLC and Barclays Bank PLC Barclays PLC Barclays Bank UK PLC Barclays Bank PLC (and subsidiaries) Personal Banking 154 Corporate and Investment Bank 136 Deposit funding 197 197 Business Banking 43 Consumer, Cards & Payments 61 Certificates of
Slide 24: 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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