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2016 EU-wide stress test results

1 Aug 2016 07:00

RNS Number : 7580F
Barclays PLC
30 July 2016
 

 

29 July 2016

 

Barclays PLC

 

2016 EU-wide stress test results

 

Barclays was subject to the 2016 EUwide stress test conducted by the European Banking Authority (EBA), in cooperation with the Bank of England (BoE), the European Central Bank (ECB), the European Commission (EC) and the European Systemic Risk Board (ESRB).

 

Barclays notes the announcements made on 29 July 2016 by the EBA on the EUwide stress test. The stress test results in a reduction of Barclays CRD IV Fully Loaded Common Equity Tier 1 ("CET1") ratio to 7.3% from the 2015 year-end position of 11.4%. The 2016 EUwide stress test does not contain a pass fail threshold.

 

The adverse stress test scenario was set by the ECB/ESRB and covers a threeyear time horizon (20162018). The stress test has been carried out applying a static balance sheet assumption as at December 2015, and therefore does not take into account subsequent or future business strategies and management actions. It is not a forecast of Barclays' profits.

 

While the results of the exercise will constitute an input to the 2016 supervisory review process, Barclays' capital requirements to cover against stress risks will primarily be informed by the BoE stress test, which is due to be published later this year.

 

Barclays' 30 June 2016 CET1 ratio was 11.6%, and Barclays remains comfortable with its target of building the ratio further to maintain a 100-150bps CET1 buffer above future regulatory CET1 levels. Barclays' 30 June 2016 CET1 ratio of 11.6% would provide a stress buffer of c.4% above the 2016 BoE stress test systemic reference point. Barclays intends to maintain a buffer around these levels in end-state.

 

Barclays' Euro-denominated results in the EBA template can be found at www.barclays.com/barclays-investor-relations/investor-news.html. The standardised disclosure templates have been developed by the EBA to help improve comparability and consistency between the stress test results of participating banks. The templates include detailed information on composition of capital, profit and loss, credit risk, sovereign exposures, securitisations, risk weighted assets and non-performing/forborne exposures.

 

 

- Ends -

 

For further information, please contact:

 

Investor Relations Media Relations

Kathryn McLeland Tom Hoskin

+44 (0) 20 7116 4943 + 44 (0) 20 7116 6927

 

 

 

 

 

Notes to editors:

 

The 2016 EU-wide stress test is a constrained bottom-up exercise that provides banks with a common methodology and templates to project in a consistent way the impact of common scenarios. The adverse scenario stresses banks' consolidated balance sheet and income statement over 36 months from 31 December 2015, based on assumptions determined by the EBA. Among other things, these assumptions are calculated based on 2011-15 balance sheets and income statements, apply caps and floors, do not allow for management actions, and in certain respects do not take account of impacts resulting from banks undertaking meaningful restructuring and exits of business activities.

 

About Barclays

 

Barclays is a transatlantic consumer, corporate and investment bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US.

 

With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 130,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.

 

For further information about Barclays, please visit our website home.barclays

 

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

 

 

This announcement contains forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Barclays group. These statements are based on the current beliefs and expectations of Barclays' management and are subject to significant risks and uncertainties. Actual outcomes may differ materially from those expressed in the forward-looking statements. Factors that could impact Barclays' future financial condition and performance are identified in our filings with the Securities and Exchange Commission ("SEC") (including, without limitation, our Annual Report on Form 20-F for the fiscal year ended 31 December 2015) which are available on the SEC's website (www.sec.gov). Subject to Barclays' obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, Barclays does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

 

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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