Barclays passes EBA EU-wide stress test

RNS Number : 3059V

Barclays PLC

27 October 2014

 



26 October 2014

Barclays PLC

Barclays passes EBA EU-wide stress test

Barclays notes the publication of stress test outcomes on 123 European banks by the European Banking Authority ("EBA") today. Barclays has passed the EBA EU-wide stress test with an estimated CRD IV Transitional Common Equity Tier 1 ("CET1") ratio, on a comparable basis to other EU banks, of 8.2% under the EBA's adverse stress scenario. Barclays' estimated PRA Transitional CET1 ratio, under this scenario, was 7.1%. Under both bases of calculation, Barclays' ratios exceed the EBA-defined 5.5% minimum threshold.

The stress test results published by the EBA are based on a CRD IV CET1 ratio calculated on a transitional basis as implemented by each bank's local regulator. For UK banks, the CRD IV Transitional CET1 ratio reflects the maximum pace of transition ("PRA Transitional CET1 Ratio"), which means that it is not directly comparable to the transitional ratios of banks in other EU jurisdictions where a slower pace of transition is adopted.

Barclays published a consolidated Fully Loaded CET1 ratio of 9.9% as at 30 June 2014. Barclays is targeting a Fully Loaded CET1 ratio of 10.5% in 2015 and in excess of 11% by the end of 2016. Barclays will announce its Interim Management Statement for the 9 months to 30 September 2014, including a Fully Loaded CET1 ratio, on 30 October 2014. 

Barclays' GBP and EUR results in the EBA template can be found at www.barclays.com/barclays-investor-relations/investor-news.html. The standardised disclosure templates have been developed by the EBA to help improve comparability and consistency between the stress test results of participating banks. These templates include details of Barclays' risk weighted credit risk exposures, asset type, securitisation exposures and market risk RWAs, and sovereign exposures by maturity and country/region as at 31 December 2013.

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For further information, please contact:

Investor Relations                                                                Media Relations  

Charlie Rozes                                                                     Giles Croot

[phone]                                                          [phone]

Notes to editors:

The EBA adverse scenario stresses Barclays' consolidated balance sheet and income statement at 31 December 2013 over 36 months, projected forward based on assumptions determined solely by the EBA.

The PRA Transitional ratio requires full deductions from capital for several material transitional items (including goodwill, deferred tax assets and the excess of expected losses over impairment). The only difference between the PRA Transitional and Fully Loaded ratios is the treatment of AFS gains.

The definition of Common Equity Tier 1 used in the stress test is per the Capital Requirements Regulation (CRR)/Capital Requirements Directive (CRD IV) definition of capital with transitional arrangements as per December 2013, December 2014, December 2015 and December 2016 as implemented by national regulators.

About Barclays

Barclays is an international financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth management with an extensive presence in Europe, the Americas, Africa and Asia. Barclays' purpose is to help people achieve their ambitions - in the right way.

With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 135,000 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 document may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. Generally, the words ''will'', ''may'', ''should'', ''continue'', ''believes'', ''expects'', ''intends'', ''anticipates'', "plans" or similar expressions that are predictive or indicative of future events identify forward-looking statements. These statements are based on the current expectations of management and are naturally subject to risks, uncertainties and changes in circumstances. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors, many of which are outside the control of Barclays and its Directors, that could cause actual results, and management's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. As such, forward-looking statements are no guarantee of future performance.

There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory environment, future exchange and interest rates, changes in tax rates and future business combinations or dispositions.

Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. Barclays does not undertake any obligation (except as required by requirements of the UK Listing Authority or any other legal or regulatory requirement) to revise or update any forward-looking statement contained in this document, regardless of whether that statement is affected 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.

 

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