Q1 2015 Interim Management Statement

29 April 2015

Barclays PLC

Fixed Income Investor Presentation

Free Writing Prospectus

Filed Pursuant to Rule 433

Reg. Statement No.

333-195645

|

Barclays Q1 2015 Fixed Income Investor Presentation

Q1 financial highlights

2

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Increased

adjusted

pre-tax

profits

by

9%

–

Core

up

14%

Core business continued to performed well with PBT of £2.1bn and RoE of 10.9%

Further progress on shrinking Non-Core and releasing capital; RWAs down to £65bn

Building capital: CET1 ratio increased to 10.6% and leverage ratio maintained at

3.7%

Group adjusted costs of £4.1bn, down 7%, delivering positive jaws

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Performance Overview

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Financial performance

•

Adjusted profit before tax increased 9%

•

Adjusted income decreased 3%, due to Non-Core run-down, while

impairment reduced 13%

•

Total adjusted operating expenses decreased 7% to £4.1bn driven by

savings from Transform programmes and lower costs to achieve

Transform

•

Adjusted attributable profit was £1.1bn, resulting in EPS of 6.5p

•

Group RoE was 7.6%, with Core RoE of 10.9%

•

Dilution on Group RoE from Barclays Non-Core was 3.3%

•

Statutory attributable profit was £465m:

Further provisions of £800m for investigations and litigation

primarily relating to Foreign Exchange

Additional PPI redress provision of £150m

Gain of £429m recognised as valuation of a component of

the defined retirement benefit liability was aligned to

statutory provisions

Loss of £118m relating to completion of the Spanish

business sale

Summary Group financials: Adjusted profits up 9%

1

EPS and RoE calculations are based on adjusted attributable profit, also taking into account tax credits on AT1 coupons |

4

Three months ended –

March (£m)

2014

2015

% change

Income

6,650

6,430

(3%)

Impairment

(548)

(477)

13%

Total operating expenses

(4,435)

(4,124)

7%

–

Costs to achieve Transform (CTA)

(240)

(120)

50%

Adjusted profit before tax

1,693

1,848

9%

Tax

(561)

(529)

6%

NCI and other equity interests

(250)

(260)

(4%)

Adjusted attributable profit

882

1,059

20%

–

Provisions for investigations and

litigation primarily relating to

Foreign Exchange

–

(800)

–

Provisions for PPI redress

–

(150)

–

Gain on valuation of a

component of the defined

retirement benefit

–

429

–

Loss on sale of Spanish business

–

(118)

–

Own credit

119

128

Statutory profit before tax

1,812

1,337

(26%)

Statutory attributable profit/(loss)

965

465

(52%)

Basic

earnings

per

share

1

5.5p

6.5p

Return

on

average

equity

1

6.5%

7.6%

Dividend per share

1.0p

1.0p

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

(£bn)

Dec-14

Mar-15

Balance

Sheet

Total assets

1,358

1,416

Leverage

exposure

1

1,233

1,255

Leverage

ratio

1

3.7%

3.7%

Capital

2

Fully loaded CET1 ratio

10.3%

10.6%

Fully loaded CET1 capital

41.5

41.8

Risk-weighted assets

402

396

Liquidity

Liquidity

coverage

ratio

3

124%

122%

Liquidity pool

149

148

Funding

Loan to Deposit Ratio

4

89%

89%

Wholesale funding

5

171

178

NSFR

3

102%

n/a

Strengthening key financial metrics

1

Mar-15

based

on

end-point

CRR

definition

of

Tier

1

capital

for

the

numerator

and

the

CRR

definition

of

leverage

exposure

as

adopted

by

the

European

Union

delegated

act.

This

is

broadly

consistent

with

the

BCBS

270

definition,

which

was

the

basis

of

Dec-14

comparatives

|

2

Based

on

Barclays

interpretation

of

the

final

CRD

IV

text

and

latest

EBA

technical

standards

|

3

LCR

based

on

CRD

IV

rules

as

per

the

EU

Delegated

Act

and

the

NSFR

based

on

the

final

guidelines

published

by

the

BCBS

in

October

2014.

NSFR

disclosed

semi-annually

|

4

LDR

calculated

for

PCB,

Africa

Banking,

Barclaycard

and

Non-Core

retail

|

5

Excludes

repurchase

agreements

|

6

Based

on

certain

assumptions

–

refer

to

slide

19

for

more

details

5

•

Progressive strengthening of key balance sheet metrics

•

CET1 capital has increased to £42bn and RWAs reduced to

£396bn improving the CET1 ratio to 10.6%

•

Leverage exposure increased slightly to £1.255trn (Dec 2014:

£1.233trn), mainly as a result of seasonal effects, but the

leverage ratio was maintained at 3.7%

•

Liquidity position remains robust with liquidity pool of £148bn

and LCR of 122%

•

Funding profile remain conservative and well diversified

•

Overall funding requirements reducing as Non-Core is run-down

•

Further progress on proactive transition towards Holding

Company capital and funding model

•

With a proxy TLAC ratio of 24%

6

, we are well positioned to meet

future TLAC requirement

Highlights

•

Raised £2bn of senior unsecured debt at Barclays PLC

which was used to subscribe for senior unsecured debt at

Barclays Bank PLC.

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

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CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

•

PBT up 14% at £2.1bn:

PCB profits up 14%

Investment Bank profits up 37%

Africa Banking profits up 23%

Barclaycard profits were down 1%

•

Income increased 2% to £6.4bn, with non-investment banking

businesses up 4%

•

Impairment improved 7%, principally reflecting the improving

UK economic environment benefitting PCB

•

Operating expenses reduced 2% to £3.9bn reflecting

Transform savings across the businesses

•

Attributable profit was £1.3bn with EPS of 7.7p

•

RoE excluding CTA was 11.6% on average allocated equity of

£47bn, up £7bn year on year

Core business performing well: Positive jaws and PBT

up 14%

Three months ended –

March (£m)

2014

2015

% change

Income

6,277

6,420

2%

Impairment

(481)

(448)

7%

Total operating expenses

(3,969)

(3,885)

2%

–

Costs to achieve Transform

(CTA)

(216)

(109)

50%

Adjusted profit before tax

1,847

2,104

14%

Tax

(589)

(615)

(4%)

NCI and other equity interests

(205)

(231)

(13%)

Adjusted attributable profit

1,053

1,258

19%

Adjusted financial performance measures

Average allocated equity

£40bn

£47bn

Return on average tangible equity

13.2%

13.2%

Return on average equity

10.7%

10.9%

Cost:income ratio

63%

61%

Basic EPS contribution

6.6p

7.7p

Dec-14

Mar-15

CRD IV RWAs

£327bn

£331bn

Leverage exposure

£956bn

£1,019bn

6

Financial performance

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

•

Period end equity reduced by £5.2bn to £9.7bn, including a

£1.3bn reduction in Q1

•

RWAs reduced £41bn to £65bn, with a reduction of £10bn in

Q1, including the completion of the sale of the Spanish

business

•

Income reduced £363m to £10m, reflecting sale of income

generating assets

•

Credit impairment improved to £29m, driven by the impact of

sale of the Spanish business and improved performance in

European retail

•

Costs reduced 49% to £239m due to savings from Transform

programmes, including non-retail headcount reductions, and

savings from the sale of the Spanish and UAE businesses

•

Attributable loss was £199m, but with the reduction in

allocated equity, the Non-Core dilution on Group RoE was

3.3%

Barclays Non-Core: Continued shrinkage and capital

recycling

Three months ended –

March (£m)

2014

2015

–

Businesses

301

122

–

Securities and Loans

87

(73)

–

Derivatives

(15)

(39)

Income

373

10

Impairment

(67)

(29)

Total operating expenses

(466)

(239)

–

Costs to achieve Transform (CTA)

(24)

(11)

Loss before tax

(154)

(256)

Tax credit

28

86

NCI and other equity interests

(45)

(29)

Attributable loss

(171)

(199)

Financial performance measures

Average allocated equity

£15.2bn

£10.3bn

Period end allocated equity

£14.9bn

£9.7bn

Return

on

average

equity

drag

1

(4.2%)

(3.3%)

Basic EPS contribution

(1.1p)

(1.2p)

CRD IV RWAs

£75bn

£65bn

Highlights

1

Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group, being the difference between Barclays Group returns and Barclays Core returns. This does not represent the return on

average equity and average tangible equity of the Non-Core business |

7

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Capital & Leverage

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

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CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Fully

loaded

(FL)

CRD

IV

CET1

ratio

progression

1

RWA reduction (£bn)

1

Continued progress on CET1 ratio despite adjusting

items

•

FL CRD IV CET1 ratio up 30bps demonstrating good progress

towards 2016 Transform target of greater than 11%, absorbing

significant litigation provisions

•

Continued capital build as FL CRD IV CET1 capital grew by

£0.4bn to £41.8bn, despite absorbing net adjusting items of

£0.6bn

•

Confident that our planned trajectory positions us well to meet

future regulatory requirements

•

RWAs reduced by £6bn, mainly driven by a £10bn reduction in

Non-Core to £65bn including the sale of the Spanish business

and the run-down of legacy structured and credit products

•

Decreases in Non-Core were recycled into Core business growth

+30bps

40

41

42

CET1

Capital

(1%)

9

9.1%

10.3%

10.6%

>11%

Dec-13

Dec-14

Mar-15

2016

Target

Dec-13

Dec-14

Mar-15

2016

Guidance

442

402

396

c.400

  Based on Barclays interpretation of the final CRD IV text and latest EBA technical standards. Following the full implementation of CRD IV reporting in 2014, the previously reported 31 December 2013 RWAs were revised by

£6.9bn to £442bn and fully loaded CET1 ratio by (0.2%) to 9.1% |

1

|

LIQUIDITY &

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CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

HOLDING COMPANY

TRANSITION

RWAs (£bn)

Highlights

•

RWAs reduced by £6bn reflecting continued progress on the

run-down of Non-Core, and growth in Core businesses

•

Core business growth of £7bn driven by growth in PCB due to

increased corporate and mortgage lending

•

Net Non-Core run-down of £10bn, reflecting the sale of the

Spanish business and reduction in legacy structures and credit

products

•

Model and methodology driven updates resulted in a net £5bn

reduction in RWAs driven by improved market risk

diversification methodology and a credit and counterparty risk

model update

RWAs: Closely managed to support business growth

and capital ratio accretion

1

Excludes

model

and

methodology

driven

movements

|

2

Includes

foreign

exchange

movements

of

£0.5bn.

This

does

not

include

movements

for

modelled

counterparty

risk

or

modelled

market

risk

|

396

1

402

10

7

1

9

5

Dec-14

Core business

growth

BNC

run-down

Net model and

methodology

updates

Other

2

Mar-15

1

1

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

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APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

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ASSET QUALITY

Barclays Non-Core: Further RWA reduction

278

236

1

Operational risk includes DTAs

1

2

382

110

45

75

65

11

RWA reduction bridge (£bn)

Leverage exposure by type (£bn)

Operational risk

Securities and loans

Derivatives

Businesses

9

8

16

15

31

31

18

11

Dec-13

Dec-14

Mar-15

39

23

107

99

114

101

18

13

180

Jun-14

Dec-14

Mar-15

2016

Target

Businesses

Securities and loans

Derivatives

Other

Total

reflects

rounding

2

2016

Target

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

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APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Continued progress on the transition towards our

‘target’

end-state capital structure

•

Fully loaded CRD IV CET1 ratio at 10.6% on track to meet our target of >

11% in 2016. The ratio was well in excess of the 7% PRA regulatory target¹

•

Robust buffers to contingent capital triggers²

AT1 contingent capital: c.360bps or £14.1bn

T2 contingent capital: c.530bps or £20.8bn³

•

As we build CET1 capital over the transitional period, we currently expect to

hold an internal management buffer of up to c.150bps over minimum

requirements in end state4

•

Transitional total capital ratio increased to 16.8% (Dec 2014: 16.5%), and

fully loaded total capital ratio increased to 15.6% (Dec 2014 : 15.4%) 

•

Further

clarity

required

on

Total

Loss

Absorbing

Capacity

(TLAC)

quantum

and

composition.

In

the

interim,

we

continue

to

build

towards

our

‘target’

end

-state capital structure which assumes at least 17% of total capital; final

requirements subject to PRA discretion

•

Barclays 2015 Pillar 2A requirement as per the PRA’s Individual Capital

Guidance (ICG) is 2.8%. The ICG is subject to at least annual review

CET1 of 1.6% (assuming 56%)

AT1 of 0.5% (assuming 19%)

T2 of 0.7% (assuming 25%)

•

The PRA consultation on the Pillar 2 framework (CP1/15), and Basel

Committee consultations and reviews of approaches to Pillar 1 and Pillar 2

risk might further impact the Pillar 2A requirement in the future

3.5%

(£13.7bn)

T2

>17%

Total capital ratio

CCCB/

Sectoral

buffers

16.8%

Total capital ratio

1.6% P2A

Pillar 2A requirement

5

4.5%

CET1

1.7% (£6.8bn)

Legacy T1

2.5%

Capital

Conservation buffer

Max 1.5%

Internal buffer

2.0%

AT1 (incl. P2A)

2.9%

T2 (incl. P2A)

2.0%

G-SII

12

Evolution of capital structure

1.1% (£4.2bn) AT1

10.6%

(£41.8bn)

CET1

Barclays'

'target' end-state

capital structure

Barclays Q1 15

capital structure

(PRA Transitional)

Fully loaded CRD IV capital position

–

–

–

–

–

1

Being

the

higher

of

7%

PRA

expectation

and

CRD

IV

capital

requirements

|

2

CRD

IV

rules

on

mandatory

distribution

restrictions

apply

from

1

January

2016

onwards

based

on

transitional

CET1

requirements

|

3

Based

on

the

CRD

IV

CET1

transitional

(FSA

October

2012

statement)

the

ratio

was

12.3%

as

at

31

March

2015

based

on

£48.5bn

of

transitional

CRD

IV

CET1

capital

and

£396bn

of

RWAs

|

4

Barclays

current

regulatory

target

is

to

meet

a

FL

CRD

IV

CET1

ratio

of

9%

by

2019,

plus

a

Pillar

2A

add-on.

Pillar

2A

requirements

for

2015

held

constant

out

to

end-state

for

illustrative

purposes.

The

PRA

buffer

is

assumed

to

be

below

the

combined

buffer

requirement

of

4.5%

in

end-state

albeit

this

might

not

be

the

case.

CCCB,

other

systemic

and

sectoral

buffer

assumed

to

be

zero

|

5

Point

in

time

assessment

made

at

least

annually,

by

the

PRA,

to

reflect

idiosyncratic

risks

not

fully

captured

under

Pillar

1

|

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

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APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

We intend to manage our CET1 capital ratio to mitigate

against the risk of mandatory distribution restrictions

•

Mandatory restrictions to discretionary

distributions

2

will

apply

to

all

European

banks, under CRD IV, from 1 January 2016

(Art. 162.2 of CRD)

•

As outlined in Art. 141 of CRD, mandatory

distribution restrictions apply if an institution

fails to meet the combined buffer

requirement (CBR)

3

at which point a

Maximum Distributable Amount (MDA) is

calculated on a reducing scale

•

CBR is phased in from 2016. In end state,

we intend to hold an internal management

buffer of up to c.150bps above CBR

providing prudent headroom to the

mandatory distribution restriction point

•

As at 1 January 2016, mandatory distribution

restrictions on interest payment would apply

at 7.2%, stepping up to 10.6% by 2019 when

the CRD IV transitional rules are fully phased

in

1

•

Barclays expects to have full discretion in the

allocation of permitted distributions within the

MDA

To AT1

7% trigger

c.£14bn

>£16bn

c.£17bn

c.£18bn

c.£20bn

To MDA

restriction

n/a

>£15bn

c.£12bn

c.£9bn

c.£6bn

Capital conservation buffer (CET1)

G-SII buffer (CET1)

Trajectory of fully loaded CET1 ratio, assuming >11% target is

met

after

which

we

build

towards

c.12%

in

end

state

3

Distributions subject to mandatory distribution restrictions

Minimum CET1 ratio

Estimated

buffers

1

(fully

loaded

CET1

ratio

vs.

AT1

7%

trigger

and

vs.

MDA

restrictions)

Sliding scale of restrictions

Pillar 2A

10.6%

8.4%

7.2%

9.5%

1

This

analysis

is

presented

for

illustrative

purposes

only

and

is

not

a

forecast

of

Barclays’

results

of

operations

or

capital

position

or

otherwise.

The

analysis

is

based

on

certain

assumptions,

which

cannot

be

assured

and

are

subject

to

change,

including:

straight

line

progress

towards

meeting

our

CET1

ratio

targets;

holding

the

2015

P2A

requirement

constant

(which

may

not

be

the

case

as

the

requirement

is

subject

to

at

least

annual

review);

and

CET1

resources

are

not required to meet the AT1 or T2 components of the minimum capital requirement. This illustration does not consider proposals in the FSB Consultative Document on the adequacy of loss-absorbing capacity of global systemically

important

banks

in

resolution

|

2

Dividends

on

ordinary

shares,

interest

payments

in

respect

of

AT1

securities

and

variable

compensation

|

3

As

per

Art.

128(6)

of

CRD:

total

CET1

capital

required

to

meet

the

requirement

for

the

capital

conservation buffer, as well as an institution specific countercyclical buffer (CCCB), G-SII buffer, O-SII buffer and systemic risk buffer as applicable. For Barclays this is currently the 2.5% Capital Conservation Buffer and 2% G-SII buffer

while the CCCB and other systemic risk and sectoral buffers are assumed to be zero |

13

CET1

requirements

1

(as

at

1

January

except

Q115)

4.5%

4.5%

4.5%

4.5%

4.5%

1.6%

1.6%

1.6%

1.6%

1.6%

1.3%

1.9%

2.5%

1.0%

1.5%

2.0%

10.6%

>11.0

%

c.12%

0%

2%

4%

6%

8%

10%

12%

Q1 15

2016

2017

2018

2019

0.6%

0.5%

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

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APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Leverage

ratio

progression

1

Leverage

exposure

(£trn)

1

Leverage ratio on track for 2016 target

•

Leverage ratio at 3.7% well on track to meet 2016 Transform

target of in excess of 4%

•

The ratio was maintained as £0.3bn of T1 capital growth was

offset by a £22bn increase in leverage exposure

•

Leverage ratio already in line with expected minimum end-state

requirement of 3.7% as outlined by the Financial Policy

Committee

•

Leverage exposure increased by £22bn in Q1 2015, mainly due

to fluctuations in settlement balances

•

Non-Core leverage exposure reduced by £41bn to £236bn

primarily driven by the sale of the Spanish business, as well as

continued reduction in derivatives exposure reflecting maturities

and trade compressions

•

Core leverage exposure increased by £63bn driven by an

increase in loans and advances and other assets due to the

seasonal increase in settlement balances

41

46

46

T1

Capital

1

BCBS 270

impact

14

3.0%

3.7%

3.7%

>4%

Dec-13

Dec-14

Mar-15

2016

Target

1.36

1.35

1.23

1.26

Dec-13

Jun-14

Dec-14

Mar-15

1

Mar-15

based

on

end-point

CRR

definition

of

Tier

1

capital

for

the

numerator

and

the

CRR

definition

of

leverage

exposure

as

adopted

by

the

European

Union

delegated

act.

This

is

broadly

consistent

with

the

BCBS

270

definition,

which

was

the

basis

of

Jun-14

and

Dec-14

comparatives.

Dec-13

not

comparable

to

the

estimates

as

of

Jun-14

onwards

due

to

different

basis

of

preparation:

estimated

ratio

and

T1

capital

based

on

PRA

leverage

ratio

calculated

as

fully

loaded

CRD

IV

T1

capital

adjusted

for

certain

PRA

defined

deductions,

and

a

PRA

adjusted

leverage

exposure

measure.

|

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Leverage

exposure

1

(£bn)

Highlights

Leverage ratio maintained at 3.7%

1,353

1,233

L&A

and

other

assets

2

SFTs

Undrawn commitments

Derivatives

Leverage

ratio

1

1,255

•

Leverage exposures during Q1 15 increased by £22bn to

£1,255bn

•

Loans and advances and other assets increased by £19bn to

£709bn primarily due to a seasonal increase in settlement

balances, partly offset by a decrease in cash balances

•

Net derivatives exposures decreased £9bn due to offsetting

moves between IFRS derivatives and allowable netting

•

Trade compressions and tear-ups continued to benefit PFE,

but reductions achieved during the quarter were largely offset

by new activity

•

SFT exposure was impacted by reduced netting

1

Mar-15

based

on

end-point

CRR

definition

of

Tier

1

capital

for

the

numerator

and

the

CRR

definition

of

leverage

exposure

as

adopted

by

the

European

Union

delegated

act.

This

is

broadly

consistent

with

the

BCBS

270

definition,

which

was

the

basis

of

Jun-14

and

Dec-14

comparatives

|

2

Loans

and

advances

and

other

assets

net

of

regulatory

deductions

and

other

adjustments

|

15

732

690

709

288

271

262

228

157

170

105

115

114

Jun-14

Dec-14

Mar-15

3.4%

3.7%

3.7%

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

CAPITAL &

LEVERAGE

ASSET QUALITY

Holding company transition

HOLDING COMPANY

TRANSITION

•

Losses arise at OpCo, and are transmitted to HoldCo through

write-down of intercompany instruments

•

Holdco’s losses are limited to its investments (equity and debt)

in the OpCo

•

Losses should be allocated in accordance with the insolvency

hierarchy, meaning pari passu treatment of equal-ranked

internal and external claims

•

‘No creditor worse off’

than in insolvency safeguard expected to

apply for senior unsecured debt

Better aligning credit proposition during transition

towards a holding company capital and funding model

Barclays PLC

(HoldCo)

Barclays Bank

PLC (OpCo)

External capital

External equity

External senior

Subscription of internal

OpCo issued equity, capital

and debt²

External OpCo

senior

External OpCo

capital

1

Based

on

Barclays

expectations

of

the

creditor

hierarchy

in

a

resolution

scenario;

assumes

internal

subordination

not

imposed

during

transition

|

Internal

issuance

in

each

case

currently

with

ranking

corresponding

to

external

HoldCo

issuance.

Further

detail

on

Barclays

PLC

parent

company

balance

sheet

on

slide

18

|

Assumes

equivalent

loss

absorption

and

recapitalisation

at

HoldCo

and

OpCo

|

4

Total

loss

absorbing

capacity

(TLAC)

as

proposed

in

the

FSB 

Consultative

Document

on

the

adequacy

of

loss-absorbing

capacity

of

global

systemically

important

banks

in

resolution

dated

10

November

2014

I

Expected creditor hierarchy during transition¹

Barclays position

Barclays Q1 2015 Fixed Income Investor Presentation

17

HOLDING COMPANY

TRANSITION

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

CAPITAL &

LEVERAGE

ASSET QUALITY

3

3

2

4

th

OpCo external

& intercompany

senior

unsecured

debt

3

rd

OpCo external

& intercompany

T2

2

nd

OpCo external

& intercompany

AT1

1

st

OpCo Equity

•

Barclays is committed to issuing most of its capital and term senior

unsecured debt out of Barclays PLC, the Holding Company

•

To better align the credit proposition between investors in HoldCo

and OpCo securities during the transition period, proceeds raised by

Barclays PLC have been used to subscribe for capital and senior

unsecured term debt in Barclays Bank PLC with corresponding

ranking

•

As the HoldCo is a creditor of the OpCo alongside OpCo external

creditors, respecting the creditor hierarchy should require pari passu

treatment between internally and externally OpCo issued capital and

debt of the same rank

1

•

Maturing capital and term senior unsecured debt to be refinanced

out of HoldCo during the transition period, making the external

creditor hierarchy simpler post transition

When required to qualify as TLAC

4

in a material subsidiary, 

senior obligations with >1 year residual maturity would need to

be downstreamed in subordinated form to its “excluded

liabilities”

Investment at HoldCo gives exposure to diversified businesses

post ring-fencing, comparable to the position of OpCo investors

today

•

Evolving regulation, including the implementation of MREL

beginning 1 Jan 2016 and any subsequent regulatory policy

interpretations, may require a change to the current approach. Any

change would be communicated to the market

|

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

Balance sheet

2014

Q1 15

Notes

£m

£m

Assets

Investment in subsidiary

33,743

33,743

Loans and advances to subsidiary

2,866

4,927

Derivative financial instrument

313

232

Other assets

174

1,221

Total assets

37,096

40,123

Liabilities

Deposits from banks

528

561

Subordinated liabilities

810

839

Debt securities in issue

2,056

4,088

Other liabilities

10

453

Total liabilities

3,404

5,941

Called up share capital

4,125

4,179

Share premium account

16,684

17,202

Other equity instruments

4,326

4,326

Capital redemption reserve

394

394

Retained earnings

8,163

8,081

33,692

34,182

37,096

40,123

•

Barclays PLC is the holding company (HoldCo) of the

Barclays Group

•

The HoldCo’s primary assets currently are its investments in,

and loans and advances made to, its sole subsidiary, Barclays

Bank PLC, the operating company (OpCo)

•

As Barclays is committed to issuing most capital and term

senior unsecured debt out of the HoldCo going forward, the

HoldCo balance sheet is expected to increase

Barclays PLC parent company accounts

Notes to the parent company balance sheet

Investment in subsidiary

The investment in subsidiary of £33,743m (2014: £33,743m) represents

investments made into Barclays Bank PLC, including £4,326m (2014:

£4,326m) of Additional Tier 1 (AT1) securities.

Loans and advances to subsidiary and debt securities in issue

During the quarter, Barclays PLC issued £2,032m equivalent of Fixed Rate

Senior Notes accounted for as debt securities in issue. The proceeds

raised through these transactions were used to make £2,032m equivalent

of Fixed Rate Senior Loans to Barclays Bank PLC, with a ranking

corresponding to the notes issued by Barclays PLC.

HOLDING COMPANY

TRANSITION

18

Barclays PLC parent company balance sheet

Notes

Shareholders’ equity

Total shareholders’ equity

Total liabilities and shareholders’ equity

|

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

HOLDING COMPANY

TRANSITION

•

Proactive

transition

towards

a

HoldCo

funding

and

capital

model positions us well to meet potential future TLAC

requirements

•

While requirements remain to be set, Barclays current

expectation is a multi-year conformance period

•

Majority portion of OpCo term senior unsecured debt

maturing before 2019 which can be refinanced from HoldCo

•

Based on Barclays current interpretation of TLAC

requirements,

proxy

TLAC

ratio

is

24%

4

on

the

assumption

that Barclays Bank PLC term non-structured senior

unsecured debt is refinanced from HoldCo and subordinated

to OpCo excluded liabilities

•

Currently do not intend to use HoldCo senior unsecured debt

proceeds to subscribe for OpCo liabilities on a  subordinated

basis until required to do so

•

The future TLAC-ratio will further benefit from CET1 capital

growth and AT1 issuance towards end-state expectations

•

As TLAC rules are finalised, and as we approach

implementation date, we will assess the appropriate

composition and quantum of our future TLAC stack

Proxy

Total

Loss

Absorbing

Capacity

(TLAC)

1

(£bn)

Mar-15

PRA transitional Common Equity Tier 1 capital

42

PRA transitional Additional Tier 1 regulatory capital

11

Barclays PLC (HoldCo)

4

Barclays Bank PLC (OpCo)

7

PRA transitional Tier 2 regulatory capital

14

Barclays PLC (HoldCo)

1

Barclays Bank PLC (OpCo)

13 

PRA transitional total regulatory capital

67

HoldCo

term

non-structured

senior

unsecured

debt

2

4

OpCo

term

non-structured

senior

unsecured

debt

3

26

Total term non-structured senior unsecured debt

97

RWAs

396

Leverage exposure

1,255

Proxy risk-weighted TLAC ratio

~ 24%

Proxy leverage based TLAC ratio

~ 8%

1

For

illustrative

purposes

only

reflecting

Barclays

interpretation

of

the

FSB

Consultative

Document

on

“Adequacy

of

loss-absorbing

capacity

of

global

systemically

important

banks

in

resolution”,

published

10

November

2014,

including

certain assumptions on the inclusion or exclusion of certain liabilities where further regulatory guidance is necessary. Evolving regulation, including the implementation of MREL beginning 1 Jan 2016 and any subsequent regulatory policy

interpretations,

may

require

a

change

to

the

current

approach

|

2

Barclays

PLC

issued

senior

unsecured

term

debt

assumed

to

qualify

for

consolidated

TLAC

purposes

I

3

Comprise

all

outstanding

Barclays

Bank

PLC

issued

public

and

private

term

senior

unsecured

debt,

regardless

of

residual

maturity.

This

excludes

£35bn

of

notes

issued

under

the

structured

notes

programmes

|

4

Including

the

4.5%

combined

buffer

requirement

which

needs

to

be

met

in

CET1.

The

combined

buffer

requirement

comprises

a

2%

G-SII

buffer

and

2.5%

capital

conservation

buffer

on

a

fully

phased

in

basis. 

19

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

CAPITAL &

LEVERAGE

ASSET QUALITY

LIQUIDITY &

FUNDING

HOLDING COMPANY

TRANSITION

Liquidity & Funding

|

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

•

Stable liquidity position with the Group liquidity pool

maintained at £148bn, providing a surplus to internal and

external minimum requirements

•

Quality of the pool remains high:

81% held in cash, deposits with central banks and high

quality government bonds

94% of government bonds are securities issued by UK,

US, Japanese, French, German, Danish, Swiss and

Dutch sovereigns

•

Even though not a regulatory requirement, the size of our

liquidity pool is over 1.8x that of wholesale debt maturing in

less than a year

•

Additional significant sources of contingent funding in the form

of high quality assets pre-positioned with central banks

globally

Maintaining a robust liquidity position, with pool well in

excess of internal and external minimum requirements

Estimated

CRD IV/Basel 3 liquidity ratios

Metric

Dec-14

Mar-15

Expected 100%

requirement date

LCR

1

124%

122%

1 January 2018

Surplus

£30bn

£28bn

NSFR

2

102%

n/a

1 January 2018

Surplus to 30-day Barclays-specific LRA (as at 31 December14)

2013

2014

LRA

104%

124%

Surplus

£5bn

£29bn

149

127

LIQUIDITY &

FUNDING

21

High quality liquidity pool (£bn)

Key messages

1

LCR

estimated

based

on

the

EU

delegated

act

|

2

Estimated

based

on

the

final

BCBS

rules

published

in

October

2014

|

43

37

31

62

85

88

22

27

29

Dec-13

Dec-14

Mar-15

Cash & Deposits at Central Banks

Government Bonds

Other Available Liquidity

148

|

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

Total funding (excluding BAGL, as at 31 December 14)

•

We guided to issuance of a gross amount of £10-15bn in 2015

across public and private senior unsecured, secured and

subordinated debt. This is materially below term maturities of

£23bn in 2015, of which £14bn remaining this year

•

In Q1 15, we issued £4bn publicly against this plan, including

$3bn of senior unsecured debt from the HoldCo in two

transactions, a £1bn covered bond from Barclays Bank PLC,

and a $500m US cards securitisation from Barclays Bank

Delaware

•

We intend to maintain access to diverse sources of wholesale

funding, through different products, currencies, maturities and

channels

•

We expect to be a regular issuer of AT1 securities over the

next few years

We maintain access to stable and diverse sources of

funding, across customer deposits and wholesale debt

2015 Funding Plan

£508bn

£522bn

£521bn

Customer deposits

Sub. debt

Secured term funding

Short-term debt and other deposits

Unsecured term funding

1

LDR for PCB, Barclaycard, Africa Banking and Non-Core retail |

LIQUIDITY &

FUNDING

22

Broadly

self-funded

retail

businesses

(£bn)

Key messages

351

349

347

321

309

310

Dec-13

Dec-14

Mar-15

Deposits from customers

91%

89%

89%

62%

61%

62%

4%

4%

4%

7%

7%

8%

14%

14%

13%

14%

13%

13%

2013

H1 14

2014

HOLDING COMPANY

TRANSITION

L&A to customers

•

Group Loan to Deposit Ratio (LDR) and the LDR for PCB,

Barclaycard

and

Africa

Banking

at

101%

and

89%

respectively

•

Excess customer

deposits in PCB, Barclaycard and Africa

Banking predominantly used to fund the liquidity buffer

requirements for these businesses, making them broadly self

funded

•

Overall funding requirements for the Group reducing as Non-

Core assets are run down

Retail LDR        

1

1

PERFORMANCE OVERVIEW

CAPITAL & LEVERAGE

HOLDING COMPANY TRANSITION

LIQUIDITY & FUNDING

ASSET QUALITY

CREDIT RATING

APPENDIX

Continue to access diverse wholesale funding sources across multiple products, currencies and maturities

Wholesale funding by product (as at 31 December 2014)

Key messages

Overall funding requirements for the Group reducing as we de-lever the balance sheet. However, total wholesale funding (excluding repurchase agreements) increased in Q1 15 to 178bn, an increase of 7bn from 31 December 2014

82bn matures in less than one year, while 22bn matures within one month (31 December 2013: 82bn and 20bn respectively)

4bn of term funding (net of early redemptions) issued in 2015. Activity includes:

$3bn public benchmark senior unsecured debt issued by Barclays PLC

1bn of Covered bonds issued by Barclays Bank PLC

We have 23bn of term funding maturing in 2015 (14bn remaining for April to December) and 13bn maturing in 2016 We expect to issue a gross amount of 10-15bn in 2015 across public and private senior unsecured, secured and subordinated debt and to maintain a stable and diverse funding base by type, currency and distribution channel

Depostis from banks CDs and CPs ABCPs Public benchmark MTNs Privately placed MTNs Covered bonds / ABS Suborindated liabilities1 Other2

By remaining maturity1: WAM net of liquidity pool 105 months

7% 10%

12%

16%

13% 3%

13%

26%

1 month

> 1 mth but 3 mths

> 3 mths but 6 mths

> 6 mths but 9 mths

> 9 mths but 12 mths

> 1 year but 2 years

> 2 years but 5 years1

> 5 years2

10%

27% 14%

8%

21% 8%

8% 4%

By currency1 USD EUR GBP Others

As at 31 December 2014 35% 32% 25% 8%

As at 31 December 2013 35% 36% 19% 10%

1 Given different accounting treatments, AT1 capital is not included in outstanding subordinated liabilities, while T2 contingent capital notes are included | 2 Primarily comprised of fair valued deposits (5bn) and secured financing of physical gold (5bn) |

23 | Barclays Q1 2015 Fixed Income Investor Presentation

Asset quality

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

CAPITAL &

LEVERAGE

ASSET QUALITY

HOLDING COMPANY

TRANSITION

PERFORMANCE HOLDING COMPANY

CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX

OVERVIEW TRANSITION

Continued strong asset quality

Impairment charge (m) Highlights

Credit impairment improved 7% to 448m, principally reflecting lower impairments in PCB

PCB benefitted from the improving economic environment in the UK, resulting in lower default rates and charges in corporate

Barclaycard impairment increased 8% and was accompanied by loans and advances growth of 15%. The loan loss rate reduced 20bps to 305bps

Africa Banking impairment improved 6% to 90m principally due to reduced charges in South Africa mortgages

7%

481 448

Q1 14 Q1 15

Personal and Corporate Banking Barclaycard Africa Banking

Impairment (m)

41% (8%) 6%

135

79 269 290 96 90

Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15

25 | Barclays Q1 2015 Fixed Income Investor Presentation

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

•

Declining Loan Loss Rate (LLR) trend

across the Group reflecting Barclays’

well-managed and conservative risk

profile

•

The Group LLR of 46bps remains

significantly below the longer term

average of 88bps

•

Group LLRs declining in both retail and

wholesale in line with improving macro

economic conditions

Group impairment stable (31 December 2014)

LLR

Annualised impairment

charge

Gross loans and advances

Wholesale loan loss rate (bps)

26

Retail loan loss rate (bps)

Highlights

34

56

(3)

16

133

37

28

33

(1)

13

12

12

Personal &

Corporate

Banking

Africa Banking

Investment

Bank

Core

Barclays

Group

Dec-13

Dec-14

25

180

332

94

78

91

18

138

308

85

75

84

Personal &

Corporate

Banking

Africa Banking

Barclaycard

Core

Barclays

Group

Dec-13

Dec-14

Non-Core

Non-Core

PERFORMANCE HOLDING COMPANY

CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX

OVERVIEW TRANSITION

Reduced exposure to Eurozone periphery (31 December 14)

Exposures by geography (bn)1

Spain Italy Portugal Ireland

59.0

4.9 52.8

7.9 6.7 43.2

6.3 4.8

22.7 4.8

20.6

18.0

23.5 19.2 15.6

2012 2013 2014

Exposures by asset class (bn)

Sovereign Financial institutions Corporate

Residential mortgages Other retail lending

59.2

6.3 53.1

5.9 43.2

2.6

32.5 31.4 16.6

4.3

9.3

5.4 5.7 6.5 7.1 2.2 17.7 2.0

2012 2013 2014

1 Net on balance sheet |

Key Messages

The vast majority of the exposures to Spain have been disposed of as of 2 January 2015 Exposure to Spain, Italy, Portugal and Ireland reduced further, down 18% to 43.2bn in December 2014 in line with Non-Core strategy 1bn of outstanding ECB LTRO as at 31 December 2014 Local net funding mismatches decreased

Portugal: 1.9bn funding gap (2013: 3bn) Italy: 9.9bn funding gap (2013: 11.6bn)

We continue to explore options to exit our other European retail and corporate exposures or materially reduce the capital they consume

27 | Barclays Q1 2015 Fixed Income Investor Presentation

Risk – Minimising potential headwinds Passing stress tests – stressed CET1 ratios 7.0% 7.1% 7.0% 5.4% PRA stress test EBA stress test Barclays CET1 stressed ratio UK Peers CET1 stressed ratio Barclays has always maintained internal stress tests Barclays passed both the PRA and EBA stress tests in 2014, with stressed CET1 ratios ahead of UK peers Under the PRA test, the 7.0% represents pre-management actions, and significantly above the 4.5% minimum threshold Managing sector exposures (bn) (as at 31 December 2014) 1 Oil and gas All other exposure1 2% 11.4 9.8 Exposure limits 4.1 3.4 4.7 Oil majors Exploration Midstream Refining Oilfield and (pipelines) services production Investment grade makes up c.90% of limits in oil and gas Total net exposure of 27m in Greece Managing country exposures (as at 31 December 2014) No material operations in Russia, with <2bn exposure in relation to financing and trading counterparties 1 Total on and off balance sheet | 28 | Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

CREDIT RATING

Credit ratings

PERFORMANCE HOLDING COMPANY

CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX OVERVIEW TRANSITION

Recent industry-wide credit rating agency (CRA) action reflects evolving resolution frameworks

Ratings (29 May 15)1 S&P Moody’s Fitch

Standalone rating bbb+ Baa2 a

Barclays PLC (B PLC - HoldCo)

Senior long-term BBB / Stable Baa3 / Stable A / Stable

Senior short-term A-2 P-3 F1

Tier 2 BB+ Baa3 A-

AT1 B - BB+

Barclays Bank PLC (BB PLC - OpCo)

Senior long-term A (CWN2) A2 / Stable A / Stable

Senior short-term A-1 (CWN2) P-1 F1

T2 CoCos BB+ - BBB-

UT2 BB+ Ba1 BBB

LT2 BBB- Baa3/Ba1 A-

Tier 1 BB Ba1/Ba2 BBB-/BB+

Rating action Certain UK, German, Austrian and Swiss non- Bank rating actions globally following Took action on

YTD 2015 – operating holding companies downgraded implementation of new bank rating sovereign support

Industry wide Ratings of most UK, German and Austrian methodology and reassessment of the on 19 May 2015

bank operating companies put on negative likelihood of sovereign support

watch

Rating action 3 Feb 2015: 28 May 2015: No impact on

YTD 2015 – B PLC’s long-term senior ratings B PLC’s long-term senior rating Barclays as the

Barclays specific downgraded by two notches to BBB downgraded by 3 notches to Baa3 due standalone credit

BB PLC’s senior ratings put on CWN to removal of sovereign support rating did not

B PLC’s subordinate ratings upgraded benefit from

by 1 notch to Baa3 due to application sovereign support

of “loss given failure” analysis uplift

17 Mar 15: BB PLC’s senior rating

affirmed and outlook changed to Stable

Next steps & CWN likely to be resolved by “early June - -

potential impact on Potential downgrade 3 of BB PLC’s senior

Barclays ratings ratings due to removal of 2 sovereign support

notches, potentially partially offset by S&Ps

criteria for “Additional Loss Absorbing

Capacity”

Action on banks domiciled in countries that

implement BRRD bail-in powers in Jan-16

expected late 2015 the earliest

Recent industry-wide CRA announcements driven by evolving resolution frameworks:

Reassessment of the likelihood of sovereign support for senior creditors resulting in downward pressure on senior credit ratings

Ratings methodology updates and changes to reflect cushion of junior debt that would absorb losses ahead of senior bank creditors may partially or fully offset sovereign support notch removal There has been no impact on Barclays standalone credit ratings which carries a stable outlook by all credit rating agencies Action on bank HoldCos more punitive:

No uplift for loss absorbing capacity provided to senior creditors to offset sovereign support notch removal, and/or

Expected increase in thickness of the senior layer which will benefit LGD over time not taken into account As implementation of bank resolution frameworks are progressing at different pace across jurisdictions, timelines for CRA action may differ

1 Definitions of securities classes for comparison purposes and not necessarily in line with the respective CRAs own definitions CreditWatch with negative implications | Potential impact based on Barclays interpretation of S&Ps public announcements. Actual ratings changes may be different as the outcome of the CWN review is at the discretion of S&P

30 Barclays Q1 2015 Fixed Income Investor Presentation

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Contractual outflows

Barclays manages and reserves for potential rating

actions in the liquidity pool (31 December 2014)

Contractual credit rating downgrade exposure

Total cumulative cash

outflow (£bn)

One-notch

Two-notch

Securitisation derivatives

5

6

Contingent liabilities

8

8

Derivatives margining

-

1

Liquidity facilities

1

2

Total

14

17

1

These numbers do not include the potential liquidity impact from loss of unsecured funding, such as from money market funds or loss of secured funding capacity |

31

Key Messages

•

Potential outflows related to a multiple-notch credit

downgrade of Barclays Bank PLC are included in the

liquidity risk appetite (LRA)

•

The table on the left hand side shows contractual

collateral requirements and contingent obligations

following potential future one and two notch long-term

and associated short-term simultaneous downgrades of

Barclays

Bank

PLC

across

all

credit

rating

agencies

Behavioural outflows

•

During 2014 the Group strengthened its liquidity position,

building a larger surplus to its liquidity risk appetite

•

This positions the Group well for any potential contractual

or behavioural outflows as a consequence of the potential

loss of the A-1 short term rating for Barclays Bank PLC by

S&P as the credit rating agency assess sovereign support

notches in its ratings

1

|

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

Summary

•

Diversified international bank focused on delivering improved and more

sustainable returns

•

Concentrating on high growth opportunities where we have competitive

advantage, eliminating marginal businesses and sharpening our focus on costs

Business model

•

Strengthened capital position with fully loaded CRD IV CET1 ratio of 10.6% as

at 31 March 2015, on track to deliver a ratio of greater than 11% in 2016

•

Building on good track record in reducing RWAs as we run-down Barclays

Non-Core and reinvest in Core businesses outside of the Investment Bank

Capital

•

Diversified funding base, combining customer deposits and wholesale

funding, in multiple currencies and different maturities

•

Robust liquidity position, well positioned to meet anticipated future

regulatory requirements

Liquidity & funding

•

Proactive and practical approach to managing regulatory changes

•

Established track record of adapting to regulatory developments.

Regulation

•

Leverage ratio maintained at 3.7% as at 31 March 2015, close to our

target of greater than 4% in 2016

•

Additional planned reductions in leverage exposure by 2016 mainly

through reduction in Barclays Non-Core and the Core Investment Bank

Leverage

32

LIQUIDITY &

FUNDING

CREDIT RATING

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

APPENDIX

Appendix

|

LIQUIDITY &

FUNDING

CREDIT RATING

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

APPENDIX

34

Repositioning and simplifying Barclays

Delivering a structurally lower cost base

Allocating capital to growth businesses

Establishing a dedicated Non-Core unit and a

new Personal and Corporate Banking business

Rightsizing and focusing the Investment Bank

Generating higher and more sustainable returns

As

presented

at

the

Group

Strategy

Update

on

8

th

May

2014

|

LIQUIDITY &

FUNDING

CREDIT RATING

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

APPENDIX

2016 Transform targets

Returns

Cost

Barclays Core

Adjusted RoE >12%

Adjusted operating expenses

<£14.5bn

Leverage

Dividend

Capital

Group

Leverage ratio >4.0%

Payout ratio 40-50%

CRD IV FL CET1 ratio >11.0%

Returns

Barclays Non-Core

Drag on adjusted RoE <(3%)

11.6%

2

£3.8bn

3

3.7%

1p

1

10.6%

(3.3%)

Q1 2015

1

Dividend

per

share

paid

for

the

quarter

-

payout

ratio

is

not

meaningful

at

Q1

|

2

Excluding

CTA.

Adjusted

RoE

including

CTA

is

10.9%

|

3

Excluding

CTA.

Bank

Levy

is

accounted

for

in

Q4

each

year

|

2016 Target

35

|

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING

COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

Simpler, focused and balanced structure

Barclays Non-Core

LBT £256m

RWAs £65bn

Barclaycard

PBT £366m

RWAs £40bn

Personal and

Corporate Banking

PBT £787m

RWAs £123bn

Africa

Banking

PBT £295m

RWAs £39bn

Investment

Bank

PBT £675m

RWAs £123bn

Barclays Group

Adjusted

results

1

Income

£6.4bn

Risk weighted assets (RWA)

£331bn

Impairment

£(0.4bn)

Average allocated equity

£47bn

Operating expenses

£(3.9bn)

Return on average equity (RoE)

10.9%

Profit before tax

£2.1bn

Return on tangible equity (RoTE)

13.2%

RoE drag

(3.3%)

1

Includes Head Office as part of Core, representing £6bn RWAs and £19m loss before tax |

All figures for quarter ended Q1 2015

APPENDIX

36

|

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING

COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

Reducing and reallocating RWAs to drive growth and

returns

<15%

Investment

Bank

222

49%

51%

Retail and

Commercial

214

RWAs

£436bn

Non-Core

c.115

Core IB

c.120

Core

(excl. IB)

c.200

£436bn

c.£400bn

+15%

c.55%

26%

28%

46%

Maintained

Core

(excl. IB)

c.230

Core IB

c.120

Non-Core

c.50

<15%

c.55%

Leverage exposure

£1.4tn

£1.4tn

c.£1.1tn

1

The Core Investment Bank will represent no more than 30% of the Group’s RWAs

1

2016

leverage

exposure

estimated

on

the

basis

of

calculation

methodology

set

out

in

BCBS

Jan-14

proposals.

All

other

regulatory

metrics

calculated

on

a

CRD

IV

basis

37

Preliminary

numbers

as

presented

at

the

Group

Strategy

Update

on

8

th

May

2014

APPENDIX

2013 pre-resegmentation (£bn)

2013 post-resegmentation estimate (£bn)

2016 guidance (£bn)

30%

|

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING

COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

38

Markets

•

Exit Quadrant Assets

•

Most physical commodities

•

Certain Emerging Markets

products

•

Capital intensive Macro

transactions

Principal Businesses

•

Investments

•

Credit

Banking

•

Front-to-back efficiency driven

headcount reductions

RWAs: c.£90bn

Leverage exposure: c.£340bn

Global credit

Right-sized macro

•

Foreign exchange

•

Rates

•

Cash equities

•

Equity derivatives

•

Equity prime

•

Credit products

•

Securitised products

•

Municipals

Fixed income secondary trading to be standard,

cleared and collateralised, short term and executed

on the electronic flow platform where relevant

Global equities

RWAs: c.£120bn

Leverage exposure: c.£490bn

•

Build on leading positions in our home markets of the UK and the

US, where we

are already well positioned

•

Exit those products with low returns under new regulatory rules

•

Structurally lower the cost base through infrastructure efficiencies and refining the

client proposition

•

Improve capital efficiency of Markets businesses

DCM

Advisory

ECM

Origination led

1

CRD IV basis |

Core Investment Bank

Non-Core Investment Bank

Core Investment Bank:

Building on competitive advantages

APPENDIX

Preliminary

numbers

as

presented

at

the

Group

Strategy

Update

on

8

th

May

2014

|

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

PCB: Profits up 14%

1

Q1 15 CIR excluding CTA was 58%  |

•

Income was in line at £2,174m:

Personal income reduced 2% driven by a reduction in fee

income and mortgage margin pressure from existing

customer rate switching, partially offset by improved

deposit margins

Corporate income increased 3% due to improved deposit

margins and balance growth in both lending and deposits,

partially offset by reduced margins in the lending

business

Wealth income reduced 4% to £258m

•

Net interest margin improved to 3.02% primarily due to the

revised overdraft proposition and higher savings and deposit

margins in personal and corporate businesses, partially offset

by margin compression in mortgages and the corporate

lending business

•

Credit impairment charges improved 41% due to the positive

economic environment in the UK resulting in lower default

rates and charges in corporate, with a resulting loan loss rate

of 14bps

•

Costs reduced 3% reflecting savings from Transform

programmes, including headcount reductions and branch

network rationalisation

•

Positive jaws contributed to an increased RoE of 12.9%, while

RoTE improved to 17.1%

Three months ended –

March (£m)

2014

2015

% change

–

Personal

1,026

1,009

(2%)

–

Corporate

879

907

3%

–

Wealth

268

258

(4%)

Income

2,173

2,174

-

Impairment

(135)

(79)

41%

Total operating expenses

(1,355)

(1,310)

3%

–

Costs to achieve Transform

(57)

(42)

26%

Profit before tax

688

787

14%

Financial performance measures

Average allocated equity

£17.4bn

£18.1bn

Return on average tangible equity

14.7%

17.1%

Return on average equity

11.1%

12.9%

Cost:income ratio1

62%

60%

Loan loss rate

25bps

14bps

Net interest margin

2.99%

3.02%

Mar-14

Mar-15

Loans and advances to customers

£215.5bn

£219.0bn

Customer deposits

£297.2bn

£298.1bn

CRD IV RWAs

£116.1bn

£122.5bn

Financial performance

APPENDIX

39

|

LIQUIDITY &

FUNDING

CREDIT RATING

APPENDIX

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

Barclays Q1 2015 Fixed Income Investor Presentation

•

Income increased 9% to £1,135m driven by US cards and

Barclaycard Business Solutions

Net interest margin reduced to 8.78% (Q1 14: 9.19%) due

to change in product mix with relatively stronger growth in

the lower margin US cards and Barclays Partner Finance

businesses, but strongly up from 8.13% reported for Q4

14

Non-interest income increased 6% to £314m due to

growth in US cards and Barclaycard Business Solutions,

partially offset by the impact of interchange fee reductions

in Europe

•

Credit impairment charges increased 8% to £290m and was

accompanied by loans and advances growth of 15%. The loan

loss rate reduced 20bps to 305bps

•

Costs increased 18% primarily reflecting business growth

•

PBT decreased slightly to £366m and attributable profit rose to

£259m (2014: £254m)

Barclaycard: Income up 9% and RoE of nearly 17%

Three months ended –

March (£m)

2014

2015

% change

Income

1,042

1,135

9%

Impairment

(269)

(290)

(8%)

Total operating expenses

(415)

(490)

(18%)

–

Costs to achieve Transform

(13)

(25)

(92%)

Profit before tax

368

366

(1%)

Financial performance measures

Average allocated equity

£5.6bn

£6.3bn

Return on average tangible equity

22.6%

21.0%

Return on average equity

18.2%

16.6%

Cost:income ratio

40%

43%

Loan loss rate

325bps

305bps

Net interest margin

9.19%

8.78%

Mar-14

Mar-15

Loans and advances to customers

£31.9bn

£36.8bn

Customer deposits

£5.8bn

£8.0bn

CRD IV RWAs

£36.4bn

£39.9bn

Financial performance

APPENDIX

40

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

APPENDIX

Currency movements had a limited effect on Q1 year on year

comparisons. Discussion of business performance is

therefore based on reported results in GBP:

•

PBT increased 23%, driven by 8% income growth exceeding

3% cost growth

•

Net interest income increased 6% to £533m, driven by higher

loans to customers in Corporate and Investment Banking

(CIB) and customer deposits in Retail and Business Banking

•

Non-interest income increased 11% to £415m, reflecting

transactional income growth in South Africa and trading

income in CIB

•

Credit impairment charges decreased 6% to £90m, driven by

reduced impairments in the South Africa mortgages portfolio

and business banking

•

Costs increased 3% reflecting inflationary pressures,

resulting in higher staff costs, partially offset by the benefits

of Transform programmes

•

RoE was 10.8% and RoTE was 14.7%

Africa Banking: Profits up 23%

1

Africa

Banking

business

unit

performance

based

on

BAGL

results,

including

Egypt

and

Zimbabwe

|

2

Barclays

share

of

the

statutory

equity

of

the

BAGL

entity

(together

with

that

of

the

Barclays

Egypt

and

Zimbabwe

businesses

which

remain

outside

the

BAGL

corporate

entity),

as

well

as

the

Barclays’

goodwill

on

acquisition

of

these

businesses.

The

tangible

equity

for

RoTE

uses

the

same

basis

but

excludes

both

the

Barclays’

goodwill

on

acquisition

and

the

goodwill

and

intangibles

held

within

the

BAGL

statutory

equity

|

Three months ended –

March (£m)

2014

2015

% change

Income

878

948

8%

Impairment

(96)

(90)

6%

Total operating expenses

(546)

(565)

(3%)

–

Costs to achieve Transform

(9)

(6)

33%

Profit before tax

240

295

23%

Financial performance measures

Average allocated equity

2

£3.7bn

£4.1bn

Return on average tangible equity

2

15.5%

14.7%

Return on average equity

2

11.1%

10.8%

Cost:income ratio

62%

60%

Loan loss rate

104bps

94bps

Net interest margin

5.91%

5.91%

Mar-14

Mar-15

Loans and advances to customers

£35.0bn

£35.7bn

Customer deposits

£34.0bn

£35.0bn

CRD IV RWAs

£36.6bn

£39.3bn

Financial

performance

1

41

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

APPENDIX

Q4 14

% change

638

(1)%

1,028

48%

•

PBT rose 37% driven by income up 2% and costs down 9%

•

RoE improved to 9.1%, or 9.6% excluding CTA

•

Income increased 2% to £2,149m:

Banking increased 3% driven by higher debt and equity

underwriting fees, partially offset by a decrease in

advisory fees and lending

Macro increased 13% due to higher income in rates and

currency products, reflecting increased client activity and

market volatility

Credit decreased 21% driven by lower income in

distressed credit, but recovered strongly from Q4 14 due

to increased client activity

Equities increased 5% driven by cash equities and equity

financing, partially offset by equity derivatives

•

Costs decreased 9% due to lower CTA and compensation

costs, as well as savings from Transform programmes,

including business restructuring and operational streamlining

Investment Bank: Profits up 37%

Three

months

ended

–

March

(£m)

2014

2015

% change

Banking

616

632

3%

Markets

1,489

1,517

2%

–

Credit

346

274

(21%)

–

Equities

591

619

5%

–

Macro

552

624

13%

Income

1

2,103

2,149

2%

Impairment release

19

11

(42%)

Total operating expenses

(1,631)

(1,485)

9%

–

Costs to achieve Transform

(130)

(31)

76%

Profit before tax

491

675

37%

Financial performance measures

Average allocated equity

£15.4bn

£15.4bn

Return on average tangible equity

6.4%

9.7%

Return on average equity

6.1%

9.1%

Cost:income ratio

78%

69%

Mar-14

Mar-15

CRD IV RWAs

£125.2bn

£123.0bn

Financial

performance

–

Q1

15

vs.

Q1

14

1

Includes ‘Other’

income |

42

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

APPENDIX

Core income: growth in net interest income and margin

•

Improved performance in income across all businesses

•

NII for our retail and corporate businesses

2

grew 6%,

reflecting an increase in customer assets and NIM:

PCB grew NII 5% driven by lending and deposit

growth and margin improvement

Barclaycard grew NII 10% driven by volume growth

Africa Banking income was up 8%, with NII up 6%

1

Includes Head Office income |

2

For Personal and Corporate Banking, Barclaycard and Africa Banking |

Average

customer

assets

and

liabilities

2

(£bn)

•

NIM increased to 414bps, measured across PCB,

Barclaycard and Africa Banking

PCB NIM improved to 3.02% (Q1 14: 2.99%)

Net

interest

margin

2

(bps)

•

Average customer assets increased 5% to £289bn, with

growth in PCB, Barclaycard, and Africa Banking

•

Average customer liabilities increased 2% to £333bn, with

growth in all three businesses

Total income

NII

Three months ended –

March

2014

2015

2014

2015

Personal and Corporate

Banking

2,173

2,174

1,528

1,601

5%

Barclaycard

1,042

1,135

746

821

10%

Africa Banking

878

948

503

533

6%

Investment Bank

2,103

2,149

Total Core

1

6,277

6,420

43

Core income (£m)

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

APPENDIX

Group and Core cost targets

1

Excludes

provisions

for

PPI,

IRHP

and

FX

redress,

goodwill

impairment

and

CTA

|

2

2016

CTA

target

of

c.£0.2bn

|

Costs to

achieve

Transform

(CTA)

£1.2bn

c.£0.7bn

2

£1.2bn

Original Guidance = £17.5bn

44

Group cost guidance

1

(£bn)

Core cost target

1

(£bn)

18.7

16.9

c.16.3

FY13

FY14

FY15 Target

16.4

15.1

<14.5

FY13

FY14

FY16 Target

Revised Guidance = £17bn

PERFORMANCE HOLDING COMPANY

CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX

Core operating costs

Core operating expenses1 (bn)

Staff costs Other operating costs Costs to achieve Transform

4.0 2% 3.9

0.2 0.1

1.2 1.3

2.5 2.4

Q1 14 Q1 15

Highlights

Core operating expenses decreased by 2% year on year driven by savings from Transform programmes principally in the Investment Bank and PCB, as well as lower CTA spend. This was partially offset by adverse FX movements Transform initiatives continued to drive significant and sustainable cost reductions by focusing on restructuring, business exits, industrialisation, innovation and property exits Investment Bank reduced operating expenses year on year predominately driven by front office restructuring and operational streamlining Barclaycard operating expenses increased primarily reflecting business growth

Personal and Corporate Banking Barclaycard Africa Banking Investment Bank

Operating costs (bn)

3% (18%) (3%) 9%

1.36 1.31 0.42 0.49 0.55 0.57 1.63 1.49

Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15

1

1 Totals in graph reflect rounding |

45 | Barclays Q1 2015 Fixed Income Investor Presentation

|

Barclays Q1 2015 Fixed Income Investor Presentation

LIQUIDITY &

FUNDING

CREDIT RATING

PERFORMANCE

OVERVIEW

HOLDING COMPANY

TRANSITION

CAPITAL &

LEVERAGE

ASSET QUALITY

APPENDIX

Investment Bank: Downward trend in compensation

charge (31 December 2014)

Role based pay

3,978

3,620

Down

c.£160m

Deferred bonuses

brought forward

Other

compensation

costs

6,598

CTA

1

Bank levy

Compensation

Non-compensation

2

1

Excludes

compensation

related

CTA

of

£37m

|

2

Excludes

CTA

and

bank

levy

|

3

The

actual

amount

charged

depends

upon

whether

conditions

have

been

met

and

will

vary

compared

with

the

above

expectation

|

46

Investment Bank operating expenses (£m)

Investment Bank –

Compensation actions

2,194

2,050

3,978

3,620

236

190

FY13

FY14

7%

Other

costs

3,045

2,566

c.200

933

854

c.700

FY13

FY14

FY15E

3

218

337

1

6,225

8%

ex-

CTA

c.700

3

•

Headcount down by 2,100 net

•

Incentive awards down 24%

•

Role based pay introduced and charged in 2014

•

Deferred bonus brought forward of £854m, but on downward trend

Down

9%

PERFORMANCE HOLDING COMPANY

CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX

Wholesale funding composition1

>1 month >3 months >6 months >9 months Total >1 year but >2 years

As at 31 March 2015 (bn) 1 month but 3 but 6 but 12 but 12 1 year 2 years but 5 years >5 years Total

months months months months

Barclays PLC

Senior unsecured MTNs - - - - - - - 2.0 2.1 4.1

(public benchmark)

Subordinated liabilities - - - - - - - - 0.8 0.8

Barclays Bank PLC

Deposits from banks 10.8 6.1 2.1 0.7 0.4 20.1 0.5 0.1 0.4 21.1

Certificates of deposit and 2.7 11.0 6.8 5.5 3.8 29.8 1.0 2.1 0.6 33.5

commercial paper

Asset backed commercial paper 4.5 1.5 0.6 - - 6.6 - - - 6.6

Senior unsecured MTNs 0.7 - 1.1 - 1.3 3.1 3.4 6.6 4.6 17.7

(public benchmark)

Senior unsecured MTNs 0.9 2.5 3.8 1.8 2.2 11.2 7.2 13.6 11.4 43.4

(private placement)2

Covered bonds / ABS 0.2 0.6 1.7 0.2 0.9 3.6 3.2 8.2 4.1 19.1

Subordinated liabilities - 0.1 - - - 0.1 - 4.2 15.7 20.0

Other3 2.1 1.4 1.7 1.0 0.8 7.0 1.0 1.5 2.2 11.7

Total 21.9 23.2 17.8 9.2 9.4 81.5 16.3 38.3 41.9 178.0

Total as at 31 December 2014 16.8 23.2 14.4 13.5 7.5 75.4 14.0 36.6 45.4 171.4

1 The composition of wholesale funds comprises the balance sheet reported deposits from banks, financial liabilities at fair value, debt securities in issue and subordinated liabilities, excluding cash collateral and settlement balances. It does not include collateral

swaps, including participation in the Bank of Englands Funding for Lending Scheme. Included within deposits from banks are 1bn of liabilities drawn in the European Central Banks 3 year LTRO. | 2 Includes structured notes of 35bn, 9bn of which matures

within one year | 3 Primarily comprised of fair value deposits 5bn and secured financing of physical gold 5bn |

47 | Barclays Q1 2015 Fixed Income Investor Presentation

PERFORMANCE HOLDING COMPANY

CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX

In line with the European Bank Recovery & Resolution Directive the UK Banking Act now includes a statutory bail-in power

Overview

Statutory bail-in of debt is a key part of the regulatory response to the financial crisis, aimed at avoiding the bail-out of failing financial institutions with tax-payer funds

European Bank Recovery and Resolution Directive (“BRRD”): a European-wide framework for the recovery and resolution of credit institutions and investment firms:

Statutory “bail-in” power in respect of eligible liabilities, to be implemented in home state legislation by no later than 1 January 2016 (Article 130) Requirement for eligible liabilities governed by non-EEA laws to include a contractual recognition by creditors that they are bound by any exercise of the statutory bail-in power (Article 55)

UK Banking Act: in line with the BRRD, the UK Banking Act was amended in January 2015 to include a “bail-in option” available to the

UK resolution authority, enabling it to recapitalise a failed institution by allocating losses to its shareholders and unsecured creditors by writing down and/or converting their claims to equity:

Certain liabilities excluded from scope, such as insured deposits, secured liabilities (Section 48B(8)) Powers to be exercised broadly in a manner that respects the hierarchy of claims in liquidation Principle that at least senior creditors should receive no less favourable treatment than they would have received in an insolvency

Considerations for Bondholders

Under Depositor Preference, the BRRD introduces seniority of deposits from natural persons and SMEs over wholesale liabilities The scope of the UK bail-in power extends to include all outstanding unsecured wholesale liabilities of original tenor greater than 7 days Liabilities issued prior to the introduction of the statutory bail-in power, including those issued under non-EEA governing laws, may be subject to bail-in upon its introduction irrespective of issuance date, unless they are „excluded liabilities (i.e. all outstanding unsecured liabilities with an original tenor greater than 7 days may be subject to bail-in). Guiding principle is that the ordinary creditor hierarchy should be respected and that creditors holding eligible liabilities of equal rank should be treated equally In accordance with rules made by the PRA (reflecting Article 55 of the BRRD), Barclays has begun including in the terms of its wholesale term debt securities, governed by non-EEA laws, a provision whereby investors acknowledge the scope of, and agree to be bound by, the UK bail-in power Note, the inclusion of such an acknowledgement is not intended to change the ranking or treatment of such non-EEA law governed instruments relative to EEA law governed instruments in respect of a UK bail-in, rather it clarifies that all such instruments should be treated equally in the event of a UK bail-in

48 | Barclays Q1 2015 Fixed Income Investor Presentation

|

Barclays Q1 2015 Fixed Income Investor Presentation

Lisa Bartrip

+44 (0)20 7773 0708

lisa.bartrip@barclays.com

Website:

barclays.com/barclays-investor-relations.html

Contact –

Debt Investor Relations Team

Sofia Lonnqvist

+44 (0)20 7116 5716

sofia.lonnqvist@barclays.com

49

Dan Colvin

+44 (0)20 7116 6533

daniel.colvin@barclays.com

|

Barclays Q1 2015 Fixed Income Investor Presentation

Legal Disclaimer

50

Important Notice

The information, statements and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or 

solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial

instruments.

Forward-looking Statements

This document contains certain 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 certain of the Group’s plans and its current goals and expectations relating 

to its future financial condition and performance. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and 

that actual results 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. Examples of forward-

looking statements include, among others, statements regarding the Group’s future financial position, income growth, assets, impairment charges and 

provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios), projected levels of 

growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the Transform 

Programme and Group Strategy Update, run-down of assets and businesses within Barclays Non-Core, estimates of capital expenditures and plans and 

objectives for future operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking statements 

involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of 

standards and interpretations under International Financial Reporting Standards (IFRS), evolving practices with regard to the interpretation and application 

of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct 

provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors 

including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of 

the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of 

continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of 

credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of the Group; the potential for one 

or more countries exiting the Eurozone; the impact of EU and US sanctions on Russia; the implementation of the Transform Programme; and the success 

of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group’s control. As a result, the 

Group’s actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, and expectations set forth in 

the Group’s forward-looking statements. Additional risks and factors are identified in our filings with the SEC, including our Annual Report on Form 20-F 

for the fiscal year ended 31 December 2014 (“2014 20-F”), which are available on the SEC’s website at http://www.sec.gov.

Any forward-looking statements made herein speak only as of the date they are made and it should not be assumed that they have been revised or 

updated in the light of new information or future events. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the 

London Stock Exchange plc (the LSE) or applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly any updates or 

revisions to any forward-looking statements contained herein to reflect any change in Barclays’ expectations with regard thereto or any change in events, 

conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has 

made or may make in documents it has published or may publish via the Regulatory News Service of the LSE and/or has filed or may file with the SEC, 

including the 2014 20-F 

|

Disclaimer (continued)

Barclays Full Year 2014 Fixed Income Investor Presentation

51

Barclays

has

filed

a

registration

statement

(including

a

prospectus)

and

has

filed,

or

will

file,

a

prospectus

supplement

with

the

U.S.

Securities

and

Exchange

Commission

(“SEC”)

for

the

offering

of

securities

to

which

this

document

relates.

Before

you

invest,

you

should

read

the

prospectus

in

that

registration

statement,

the

prospectus

supplement

relating

to

the

offering

of

the

Securities

(when

filed)

and

other

documents

that

Barclays

will

file

with

the

SEC.

You

may

get

these

documents

for

free

by

searching

the

SEC

online

database

(EDGAR®)

at

www.sec.gov.

Alternatively,

you

may

obtain

a

copy

of

the

prospectus

from

Barclays

Capital

Inc.

by

calling

1-888-603-5847.

Certain non-IFRS Measures

Barclays

management

believes

that

the

non-International

Financial

Reporting

Standards

(non-IFRS)

measures

included

in

this

document

provide

valuable

information

to

readers

of

its

financial

statements

because

they

enable

the

reader

to

identify

a

more

consistent

basis

for

comparing

the

business’

performance

between

financial

periods,

and

provide

more

detail

concerning

the

elements

of

performance

which

the

managers

of

these

businesses

are

most

directly

able

to

influence

or

are

relevant

for

an

assessment

of

the

Group.

They

also

reflect

an

important

aspect

of

the

way

in

which

operating

targets

are

defined

and

performance

is

monitored

by

Barclays

management.

However,

any

non-IFRS

measures

in

this

document

are

not

a

substitute

for

IFRS

measures

and

readers

should

consider

the

IFRS

measures

as

well.

As

management

reviews

the

adjusting

items

described

below

at

a

Group

level,

segmental

results

are

presented

excluding

these

items

in

accordance

with

IFRS

8;

"Operating

Segments".

Statutory

and

adjusted

performance

is

reconciled

at

a

Group

level

only.

Key

non-IFRS

measures

included

in

this

document

and

the

most

directly

comparable

IFRS

measures

are

described

below.

Quantitative

reconciliations

of

these

measures

to

the

relevant

IFRS

measures

are

included

in

Exhibit

99.1

of

the

Barclays’

Form

6-K

filed

with

the

SEC

on

April

29,

2015

(Film

No.

15811411) 

(the

“April

29

Form

6-K”)

(available

at

http://www.sec.gov/Archives/edgar/data/312069/000119312514388991/d810869dex991.htm )

and

such

quantitative

reconciliations

are

incorporated

by

reference

into

this

document.

•

Adjusted

profit

before

tax

is

the

non-IFRS

equivalent

of

profit

before

tax

as

it

excludes

the

impact

of

own

credit;

provisions

for

Payment

Protection

Insurance

(PPI)

and

claims

management

costs

and

interest

rate

hedging

redress;

gain

on

US

Lehman

acquisition

assets;

provision

for

investigations

and

litigation

primarily

relating

to

Foreign

Exchange;

loss

on

sale

of

the

Spanish

business;

Education,

Social

Housing,

and

Local

Authority

(ESHLA)

valuation

revision,

gain

on

valuation

of

a

component

of

the

defined

retirement

benefit

liability,

and

goodwill

impairment.

A

reconciliation

to

IFRS

is

presented

on

page

9

of

the

April

29

Form

6-K;

•

Adjusted

profit

after

tax

represents

profit

after

tax

excluding

the

post-tax

impact

of

own

credit;

provisions

for

PPI

redress;

provision

for

investigations

and

litigation

primarily

relating

to

Foreign

Exchange;

loss

on

sale

of

the

Spanish

business;

and

gain

on

valuation

of

a

component

of

the

defined

retirement

benefit

liability.

A

reconciliation

to

IFRS

is

presented

on

page

5

of

the

April

29

Form

6-K;

•

Adjusted

attributable

profit

represents

adjusted

profit

after

tax

less

profit

attributable

to

non-controlling

interests.

The

comparable

IFRS

measure

is

attributable

profit;

•

Adjusted

income

and

adjusted

total

income

net

of

insurance

claims

represents

total

income

net

of

insurance

claims

excluding

the

impact

of

own

credit.

A

reconciliation

to

IFRS

is

presented

on

page

9

of

the

April

29

Form

6-K;

|

Disclaimer (continued)

Barclays Full Year 2014 Fixed Income Investor Presentation

52

•

Adjusted

total

operating

expenses

represents

operating

expenses

excluding

the

provisions

for

PPI

redress;

provision

for

investigations

and

litigation

primarily

relating

to

Foreign

Exchange;

and

gain

on

valuation

of

a

component

of

the

defined

retirement

benefit

liability.

A

reconciliation

to

IFRS

is

presented

on

page

9

of

the

April

29

Form

6-K;

•

Adjusted

litigation

and

conduct

represents

litigation

and

conduct

excluding

the

provisions

for

PPI

redress;

and

the

provision

for

investigations

and

litigation

primarily

relating

to

Foreign

Exchange.

A

reconciliation

to

IFRS

is

presented

on

page

9

of

the

April

29

Form

6-K;

•

Adjusted

cost:

income

ratio

represents

cost:

income

ratio

excluding

the

impact

of

own

credit;

the

provisions

for

PPI

redress;

gain

on

US

Lehman

acquisition

assets;

provision

for

investigations

and

litigation

primarily

relating

to

Foreign

Exchange

and

gain

on

valuation

of

a

component

of

the

defined

retirement

benefit

liability.

The

comparable

IFRS

measure

is

cost:

income

ratio,

which

represents

operating

expenses

to

income

net

of

insurance

claims.

A

reconciliation

to

IFRS

is

presented

on

page

9

of

the

April

29

Form

6-K;

•

Adjusted

basic

earnings

per

share

represents

adjusted

attributable

profit

divided

by

the

basic

weighted

average

number

of

shares

in

issue.

The

comparable

IFRS

measure

is

basic

earnings

per

share,

which

represents

profit

after

tax

and

non-controlling

interests,

divided

by

the

basic

weighted

average

number

of

shares

in

issue;

•

Adjusted

return

on

average

shareholders’

equity

represents

annualised

adjusted

profit

after

tax

for

the

period

attributable

to

ordinary

shareholders,

including

an

adjustment

for

the

tax

credit

in

reserves

in

respect

of

other

equity

instruments,

as

a

proportion

of

average

shareholders’

equity,

excluding

non-controlling

interests

and

other

equity

instruments.

The

comparable

IFRS

measure

is

return

on

average

shareholders’

equity

which

represents

annualised

profit

after

tax

for

the

period

attributable

to

ordinary

shareholders,

including

an

adjustment

for

the

tax

credit

in

reserves

in

respect

of

other

equity

instruments,

as

a

proportion

of

average

shareholders’

equity,

excluding

non-controlling

interests

and

other

equity

instruments;

•

Adjusted

return

on

average

tangible

shareholders’

equity

represents

annualised

adjusted

profit

after

tax

for

the

period

attributable

to

ordinary

shareholders,

including

an

adjustment

for

the

tax

credit

in

reserves

in

respect

of

other

equity

instruments,

as

a

proportion

of

average

shareholders’

equity

excluding

non-controlling

interests

and

other

equity

instruments

adjusted

for

the

deduction

of

intangible

assets

and

goodwill.

The

comparable

IFRS

measure

is

return

on

average

tangible

shareholders’

equity

which

represents

annualised

profit

after

tax

for

the

period

attributable

to

ordinary

shareholders,

including

an

adjustment

for

the

tax

credit

in

reserves

in

respect

of

other

equity

instruments,

as

a

proportion

of

average

shareholders’

equity

excluding

non-controlling

interests

and

other

equity

instruments

adjusted

for

the

deduction

of

intangible

assets

and

goodwill;

•

Barclays

Core

results

are

non-IFRS

measures

because

they

represent

the

sum

of

five

Operating

Segments,

each

of

which

is

prepared

in

accordance

with

IFRS

8;

“Operating

Segments”:

Personal

and

Corporate

Banking,

Barclaycard,

Africa

Banking,

Investment

Bank

and

Head

Office.

A

reconciliation

to

the

corresponding

statutory

Group

measures

are

provided

on

page

10

of

the

April

29

Form

6-K;

•

Constant

currency

results

in

Africa

Banking

are

calculated

by

converting

ZAR

results

into

GBP

using

the

average

exchange

rate

for

the

three

months

ended

31

March

2015

for

the

income

statement

and

the

31

March

2015

closing

exchange

rate

for

the

balance

sheet

and

applying

those

rates

to

the

results

as

of

and

for

the

three

months

ended

31

March

2014,

in

order

to

eliminate

the

impact

of

movement

in

exchange

rates

between

the

two

periods;

|

Disclaimer (continued)

Barclays Full Year 2014 Fixed Income Investor Presentation

53

•

Liquidity

Coverage

Ratio

(LCR)

is

calculated

according

to

the

Commission

Delegated

Regulation

of

October

2014

that

supplements

Regulation

(EU)

575/2013

(CRDIV)

published

by

the

European

Commission

in

June

2013.

The

metric

is

a

ratio

that

is

not

yet

fully

implemented

in

local

regulations

and,

as

such,

represents

a

non-IFRS

measure

•

Net

Stable

Funding

Ratio

(NSFR)

is

calculated

according

to

the

definition

and

methodology

detailed

in

the

standard

provided

by

the

Basel

Committee

on

Banking

Supervision.

The

original

guidelines

released

in

December

2010

(‘Basel

III:

International

Framework

for

Liquidity

Risk

Measurement,

Standards

and

Monitoring’,

December

2010)

were

revised

for

in

January

2014

(‘Basel

III:

The

Net

Stable

Funding

Ratio’,

January

2014).

The

metric

is

a

regulatory

ratio

that

is

not

yet

finalised

in

local

regulations

and,

as

such,

represent

a non-

IFRS

measure.

This

definition

and

the

methodology

used

to

calculate

this

metric

is

subject

to

further

revisions

ahead

of

the

implementation

date

and

Barclays’

interpretation

of

this

calculation

may

not

be

consistent

with

that

of

other

financial

institutions;

•

Transitional

CET1

ratio

according

to

FSA

October

2012.

This

measure

is

calculated

by

taking

into

account

the

statement

of

the

Financial

Services

Authority,

the

predecessor

of

the

Prudential

Regulation

Authority,

on

CRD

IV

transitional

provisions

in

October

2012,

assuming

such

provisions

were

applied

as

at

1

January

2014.

This

ratio

is

used

as

the

relevant

measure

starting

1

January

2014

for

purposes

of

determining

whether

the

automatic

write-down

trigger

(specified

as

a

Transitional

CET1

ratio

according

to

FSA

October

2012

of

less

than

7.00%)

has

occurred

under

the

terms

of

the

Contingent

Capital

Notes

issued

by

Barclays

Bank

PLC

on

November

21,

2012

(CUSIP:

06740L8C2)

and

April

10,

2013

(CUSIP:

06739FHK0).

Please

refer

to

page

20

of

the

April

29

Form

6-K

for

a

reconciliation

of

this

measure

to

CRD

IV

CET1

ratio;

and

•

The

estimate

of

“Proxy

Total

Loss

Absorbing

Capacity

(TLAC)

ratio”

reflects

Barclays’

current

understanding

of

how

the

Financial

Stability

Board’s

Consultative

Document

on

“Adequacy

of

loss-absorbing

capacity

of

global

systemically

important

banks

in

resolution”

may

be

implemented

in

the

United

Kingdom.

The

estimate

reflects

certain

assumptions

on

the

inclusion

or

exclusion

of

certain

liabilities

where

further

regulatory

guidance

is

necessary.

Evolving

regulation,

including

the

implementation

of

MREL

beginning

1

Jan

2016

and

any

subsequent

regulatory

policy

interpretations,

may

require

a

change

to

the

current

approach.

As

such

metric

is

subject

to

further

regulatory

guidance

and

it

is

not

yet

implemented

in

local

regulations,

the

estimate

of

this

metric

represents

a

non-IFRS

measure

and

is

presented

in

this

document

for

illustrative

purposes

only.