Barclays PLC 2019 Bank of England stress test result (0616X)
December 16 2019 - 12:30PM
UK Regulatory
TIDMBARC
RNS Number : 0616X
Barclays PLC
16 December 2019
16 December 2019
Barclays PLC
Barclays passes the 2019 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 passed the stress test with a 8.9%
minimum stressed transitional Common Equity Tier 1 ("CET1") ratio
after taking account of strategic management actions including CRD
IV distribution restrictions. Barclays therefore comfortably
exceeded the stress test hurdle rate of 8.1%.
The minimum stressed transitional UK Tier 1 leverage ratio of
3.8%, after taking account of strategic management actions
including CRD IV distribution restrictions, also exceeded the 2019
transitional stress test hurdle rate of 3.6%.
As a result, Barclays' CET1 ratio target of c.13.5% is not
currently expected to change and its capital distribution
expectations are not impacted. The CET1 ratio continues to be the
binding capital constraint for Barclays.
The BoE assesses banks' performance on a transitional basis for
IFRS9 but, for transparency purposes, has also published the stress
test results on a hypothetical non-transitional basis. Under this
assessment, Barclays' minimum stressed non-transitional CET1 ratio
was 6.5% and UK Tier 1 leverage ratio was 3.0%, after taking
account of strategic management actions including CRD IV
distribution restrictions. The 2019 non-transitional hurdle rates
of 7.0% and 3.25%, respectively, are hypothetical and subject to
change in future years.
With regard to the non-transitional basis, Barclays welcomes the
comments made by the BoE in the Financial Stability Report
published today (link), which discusses options for an enduring
approach to the treatment of IFRS9 in future stress tests and is
consistent with the principle stated previously that the
interaction of IFRS9 and the stress test should not result in an
unwarranted de facto increase in capital requirements. Barclays
welcomes the opportunity to share its views on these options with
the BoE in 2020.
The BoE stress test results for UK banks can be found on the BoE
website at
https://www.bankofengland.co.uk/stress-testing/2019/bank-of-england-stress-testing-results
- Ends -
For further information, please contact:
Investor Relations Media Relations
Adam Strachan Tom Hoskin
+ 1 212 526 8442 + 44 (0) 20 7116 6927
James Johnson
+ 44 (0) 207 116 7233
About Barclays
Barclays is a transatlantic consumer and wholesale bank offering
products and services across personal, corporate and investment
banking, credit cards and wealth management, with a strong presence
in our two home markets of the UK and the US.
With over 325 years of history and expertise in banking,
Barclays operates in over 40 countries and employs approximately
83,500 people. Barclays moves, lends, invests and protects money
for customers and clients worldwide.
For further information about Barclays, please visit our website
www.barclays.com
INFORMATION REGARDING 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 Barclays Group. 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 our
filings with the Securities and Exchange Commission ("SEC")
(including, without limitation, our Annual Report on Form 20-F for
the fiscal year ended 31 December 2018) which are available on the
SEC's website (www.sec.gov). Subject to Barclays' obligations under
the applicable laws and regulations of any relevant jurisdiction
(including, without limitation, the UK and US) in relation to
disclosure and ongoing information, we undertake no obligation to
update publicly or revise any the forward-looking statements
whether as a result of new information, future events or
otherwise.
No statement in this document is intended as a profit forecast
and no statement in this document 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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