REG - Barclays PLC - Barclays 2021 BoE Stress Test Results

BarclaysAnnouncement

13/12/2021 18:25

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RNS Number : 5043V  Barclays PLC  13 December 2021

13 December 2021

 

 

Barclays PLC

 

Barclays above all reference rates in 2021 Bank of England stress test

 

Barclays PLC ("Barclays") notes the publication today of stress test outcomes
for UK banks by the Bank of England ("BoE"). Under the BoE's assessment,
Barclays was sufficiently capitalised by remaining above the respective
reference rates for the duration of the stress scenario under both measures of
capital, and in terms of both transitional and non-transitional bases for IFRS
9.

 

As a result, Barclays' CET1 ratio target range of 13-14% and capital returns
policy - of maintaining a progressive ordinary dividend supplemented by
additional cash returns, including share buybacks, as appropriate - remain
unchanged.

 

Barclays' results from the BoE stress test are set out in the table below.

 

                                           Actual (end-2020)(i)  Minimum stressed ratio (before strategic management actions)(i)  Minimum stressed ratio (after the impact of strategic management actions)(i)  Reference rate  Actual (2021 Q3)(i)
 IFRS9 Transitional
 Common equity Tier 1 ratio(a)(b)          15.1%                 8.2% (g)                                                         9.4%                                                                          8.1%            15.4%
 Tier 1 Capital ratio(c)                   19.0%                 11.2% (g)                                                        12.4% (g)                                                                                     19.6%
 Total capital ratio(d)                    22.1%                 13.5% (g)                                                        14.7% (g)                                                                                     22.9%
 Memo: risk-weighted assets (£ billions)   306                   370 (g)                                                          369 (g)                                                                                       307
 Memo: CET1 (£ billions)                   46                    30 (g)                                                           35 (g)                                                                                        47
 Tier 1 leverage ratio(a)(e)               5.3%                  4.0% (h)                                                         4.1%                                                                          3.7%            5.1%
 Memo: leverage exposure (£ billions)      1,091                 1,112 (h)                                                        1,111 (h)                                                                                     1,161
 IFRS9 non-transitional
 Common equity Tier 1 ratio(f)             14.3%                 7.7%                                                             8.2%                                                                          7.0%            15.0%
 Tier 1 leverage ratio(f)                  5.0%                  3.4%                                                             3.6%                                                                          3.3%            5.0%

 

(a) The low points for the common equity Tier 1 (CET1) ratio and leverage
ratio shown in the table do not necessarily occur in the same year of the
stress scenario and correspond to the year where the minimum stressed ratio is
calculated after strategic management actions. There is no conversion of
banks' AT1 instruments in the stress.

(b) The CET1 capital ratio is defined as CET1 capital expressed as a
percentage of risk-weighted assets, where these are in line with CRR and the
UK implementation of CRD V via the PRA Rulebook.

(c) Tier 1 capital ratio is defined as Tier 1 capital expressed as a
percentage of RWAs where Tier 1 capital is defined as the sum of CET1 capital
and additional Tier 1 capital in line with the UK implementation of CRD V.

(d) Total capital ratio is defined as total capital expressed as a percentage
of RWAs where total capital is defined as the sum of Tier 1 capital and Tier 2
capital in line with the UK implementation of CRD V.

(e) The Tier 1 leverage ratio is Tier 1 capital expressed as a percentage of
the leverage exposure measure excluding central bank reserves, as defined in
Rule 1.2 of the Leverage Ratio part of the PRA Rulebook.

(f) The low point year for the non-transitional IFRS 9 may differ to the low
point year on a transitional IFRS 9 basis.

(g) Corresponds to the same year as the minimum CET1 ratio over the stress
scenario after strategic management actions.

(h) Corresponds to the same year as the minimum leverage ratio over the stress
scenario after strategic management actions.

(i) Treatment of software assets non-deduction: End-2020 capital numbers
include the benefit from software assets non-deduction, and minimum stress
numbers that occur in 2021 also include the benefit from software assets
non-deduction. Minimum stress numbers that occur after 2021 exclude the
benefit from software assets non-deduction. This is in line with the PRA's
Policy Statement PS17/21.

 

- Ends -

 

For further information, please contact:

 

Investor
Relations
Media Relations

Chris
Manners
Tom Hoskin / Jon Tracey

+44 (0) 20 7773 2136
 
+44 (0) 20 7116 4755

 

About Barclays

 

Barclays is a British universal bank. We are diversified by business, by
different types of customer and client, and geography. Our businesses include
consumer banking and payments operations around the world, as well as a
top-tier, full service, global corporate and investment bank, all of which are
supported by our service company which provides technology, operations and
functional services across the Group. For further information about Barclays,
please visit our website home.barclays.

 

Forward-looking statements

 

This announcement contains forward-looking statements within the meaning of
Section 21E of the US Securities Exchange Act of 1934, as amended, and Section
27A of the US Securities Act of 1933, as amended, with respect to the Group.
Barclays cautions readers that no forward-looking statement is a guarantee of
future performance and that actual results or other financial condition or
performance measures could differ materially from those contained in the
forward-looking statements. These forward-looking statements can be identified
by the fact that they do not relate only to historical or current facts.
Forward-looking statements sometimes use words such as 'may', 'will', 'seek',
'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar
meaning. These statements are based on the current beliefs and expectations of
Barclays' management and are subject to significant risks and uncertainties.
Actual outcomes may differ materially from those expressed in the
forward-looking statements. Factors that could impact Barclays' future
financial condition and performance are identified in Barclays PLC's filings
with the US Securities Exchange Commission ("SEC") (including, without
limitation, Barclays PLC's Annual Report on Form 20-F for the fiscal year
ended 31 December 2020 and Interim Results Announcement for the six months
ended 30 June 2021 filed on Form 6-K), which are available on the SEC's
website at www.sec.gov.

 

Subject to Barclays' obligations under the applicable laws and regulations of
any relevant jurisdiction, (including, without limitation, the UK and the US),
in relation to disclosure and ongoing information, we undertake no obligation
to update publicly or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

 

No statement in this announcement is intended as a profit forecast and no
statement in this announcement should be interpreted to mean that the earnings
per share for the current or future years would necessarily match or exceed
the historical published earnings per share.

 

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