2 November 2018
Barclays PLC
2018 EU-wide stress test results
Barclays was subject to the 2018 EU‐wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Bank of England (BoE), the European Central Bank (ECB) and the European Systemic Risk Board (ESRB).
Barclays notes the announcements made today by the EBA on the EU‐wide stress test and fully acknowledges the outcome of this exercise. The stress test results in a reduction of Barclays CRD IV Transitional Common Equity Tier 1 ("CET1") ratio to 7.3% from the 2017 year-end position of 13.3%.
The 2018 EU‐wide stress test does not contain a pass fail threshold. The results will assist competent authorities in assessing Barclays' ability to meet applicable prudential requirements under stress scenarios.
The adverse stress test scenario was set by the ECB/ESRB and covers a three‐year time horizon (2018‐2020). It is the first EBA stress test under the IFRS9 accounting standard. The stress test has been carried out applying a static balance sheet assumption as at December 2017, and therefore does not take into account subsequent or future business strategies and management actions. It is not a forecast of Barclays' profits.
While the results of the exercise will constitute an input to the 2018 supervisory review process, Barclays' capital requirements will primarily be informed by the BoE stress test, which is due to be published on 5 December 2018.
Barclays' 30 September 2018 CET1 ratio was 13.2%, and Barclays remains comfortable with its target CET1 ratio of c.13%, which is currently 160bps above the expected end state regulatory minimum level.
Barclays' Euro-denominated 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. The templates include detailed information on composition of capital, profit and loss, credit risk, securitisations, risk weighted assets, non-performing/forborne exposures and major measures and realised losses in 2018.
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For further information, please contact:
Investor Relations Media Relations
Lisa Bartrip Tom Hoskin
+44 (0) 20 7773 0708 + 44 (0) 20 7116 6927
Notes to editors:
The 2018 EU-wide stress test is a constrained bottom-up exercise that provides banks with a common methodology and templates to project in a consistent way the impact of common scenarios. The adverse scenario stresses banks' consolidated balance sheet and income statement over 36 months from 31 December 2017, based on assumptions determined by the EBA. Among other things, these assumptions are calculated based on 2013-17 balance sheets and income statements, apply caps and floors and do not allow for management actions. The stress test outcome also incorporates provisions for now resolved significant legacy matters, such as Barclays' settlement with the United States Department of Justice in relation to Retail Mortgage-Backed Securities, and in certain respects do not take account of impacts resulting from banks undertaking meaningful restructuring and exits of business activities.
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 82,000 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 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 2017) which are available on the SEC's website (www.sec.gov). Subject to Barclays' obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, Barclays does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
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.
