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Barclays continues to maintain strong capital and leverage ratios.
  

CRD IV capital

Barclays' current regulatory requirement is to meet a fully loaded CET1 ratio comprising the required 4.5% Pillar 1 minimum CET1 requirement and, phased in from 2016, a Combined Buffer Requirement. This currently comprises a Capital Conservation Buffer (CCB) and a Global Systemically Important Institution (G-SII) buffer determined by the PRA in line with guidance from the Financial Stability Board (FSB). Both buffers are subject to phased implementation at 25% per annum from 2016 with full effect from 2019.  The CCB has been set at 2.5% with 1.25% applicable for 2017. The G-SII buffer for 2017 has been set at 2% with 1% applicable for 2017. On 21 November 2016 the FSB confirmed that the G-SII buffer for 2018 will be 1.5% with 1.1% applicable for 2018.  

The Combined Buffer Requirement also includes a Counter-Cyclical Capital Buffer (CCyB) and a Systemic Risk Buffer (SRB). On 27 June 2017 the Financial Policy Committee (FPC) increased the UK CCyB rate from 0% to 0.5% applicable from 27 June 2018. Other national authorities also determine the appropriate CCyBs that should be applied to exposures in their jurisdiction. CCyBs have started to apply for Barclays' exposures to other jurisdictions; however based on current exposures these are not material. No SRB has been set to date.

In addition, Barclays' Pillar 2A requirement as per the PRA's Individual Capital Guidance (ICG) for 2017 based on a point in time assessment is 4.1% of which 56% needs to be met in CET1 form, equating to approximately 2.3% of RWAs. The Pillar 2A requirement is subject to at least annual review.

For regulatory reporting purposes, BAGL is treated on a proportional consolidated basis based on a Barclays' holding in BAGL of 23.4%. 

As at 30 June 2017 Barclays' CET1 ratio was 13.1% which exceeds the 2017 transitional minimum requirement of 9.1% including the minimum 4.5% CET1 ratio requirement, 2.3% of Pillar 2A, a 1.25% CCB buffer, a 1% G-SII buffer and a 0% CCyB.

 

Fully loaded capital ratios

  Jun-17 Mar-17 Dec-16
CET1 capital  13.1% 12.5% 12.4%
Tier 1 capital  15.4% 14.7% 14.2%
Total capital  19.8% 18.7% 18.5%

PRA transitional capital ratios

  Jun-17 Mar-17 Dec-16
CET1 capital 13.1% 12.5% 12.4%
Tier 1 capital  16.6% 15.8% 15.6%
Total capital  20.7% 19.6% 19.6%
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Leverage

Barclays is subject to a leverage ratio requirement that is implemented on a phased basis, with a transitional rquirement of 3.4% as at 30 June 2017; this comprises of the 3% minimum requirement, a transitional G-SII additional leverage ratio buffer (G-SII ALRB) and a countercyclical leverage ratio buffer (CCLB).  Based on both future and proposed requirements the expected end point leverage requiremtn is 4.0%.  Additionally, the CRR fully loaded leverage requirement is currently expected at 3%, although this may be impacted by the Basel Consultation on the Leverage Framework.

Barclays is required to dislcose a UK leverage ratio which is based on capital and exposure measures onthe last day of the quarter; as well as an average UK leverage ratio based on the last day of each month in the quarter.  Both approaches exclude qualifying cast at central banks from the calculation of leverage exposure.  There is also a CRR leverage ratio disclosure requirement, which is based on the end point CRR definition of Tier 1 capital and the CRR definition of leverage exposure.

At 30 June 2017, Barclays' UK leverage ratio was 5.0% (December 2016: 5.0%) and the average UK leverage ratio was 4.8% (December 2016: 4.5%), which exceeds the transitional leverage requirement for Barclays of 3.4%, and expected end point leverage rquirement of 4.0%.  The CRR leverage ratio was 4.5% (December 2016: 4.6%).

 

 

Leverage ratio

  Jun-17 Mar-17 Dec-16
Average UK Leverage ratio 4.8% 4.6% 4.5%
UK Leverage ratio 5.0% 4.8% 5.0%
CRR Leverage ratio 4.5% 4.4% 4.6%



For detail on capital and leverage ratios, please refer to the:

H1 2017 Results Announcement (PDF 2MB)H1 2017 Results Announcement (PDF 2MB)
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The Directors

Biographies of Barclays’ Board and Executive Committee members.

03 Mar 2014, 09:11 GMT

Corporate strategy and priorities

Our strategy remains on course to build a stronger, fitter, better bank. Barclays has been repositioned, simplified and rebalanced to generate sustainable returns.

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