Barclays Q1 2021 Fixed Income Investor Presentation slide image

Barclays Q1 2021 Fixed Income Investor Presentation

STRATEGY, TARGETS & GUIDANCE CAPITAL PERFORMANCE ASSET QUALITY & LEVERAGE MREL, FUNDING & LIQUIDITY CREDIT RATINGS ESG Constructive regulatory actions in 2020 Many regulatory actions in place for the medium term and beyond CET1 requirement Modification of Pillar 2A requirement¹ CET1 capital IFRS 9 transitional relief on new COVID-19 related expected credit loss provisions² CRR software intangibles change³ ° PVA4 RWAS Market risk changes, including VaR back-testing2,5,6 DIVISIONS & LEGAL ENTITIES Expected timeline APPENDIX FY20 FY21 FY22 FY23 FY24 Q1 Q2 Q3 Applies under CRR 'Quick Fix' 1 1 The Pillar 2A requirement will continue to move, given the changes outlined in the new methodology outlined in the 7 May 2020 statement by the PRA 12 Measures outlined in Regulation (EU) 2020/873, effective on 27 June 2020, as part of the CRR II 'Quick Fix' package, and adopted in H1 2020 reporting | 3 On 23 December 2020, a new regulatory technical standard on the prudential treatment of qualifying software assets was adopted into EU law replacing the CET1 capital deduction with prudential amortisation up to a 3-year period. Intangible assets that are no longer deducted are subject to 100% risk weight instead. Following its stated intention to consult, on 12 February 2021 the PRA launched a consultation on certain items within the Basel standards that remain to be implemented in the UK as well as setting out proposed new PRA CRR rules. The proposals include reverting to the previous treatment of 100% CET1 capital deduction for qualifying software assets by the end of 2021, meaning the benefit in the CET1 ratio is likely to be reversed in future periods | Measures adopted as part of amendments to Regulatory Technical Standard on Prudential Valuation | 5 As guided by the PRA on 30 March 2020, which allows the offset of market risk increases due to COVID-19 related back testing exceptions against risks-not-in-VaR (RNIV); post Q3-20, as per CRR II "Quick Fix", discounting of COVID-19 exceptions is subject to PRA approval which has been granted for those exceptions observed to date 16 Timeline refers to VaR back-testing | 39 Barclays Q1 2021 Fixed Income Investor Presentation
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