Barclays Q1 2021 Fixed Income Investor Presentation
STRATEGY, TARGETS
& GUIDANCE
CAPITAL
PERFORMANCE
ASSET QUALITY
& LEVERAGE
MREL, FUNDING
& LIQUIDITY
DIVISIONS
CREDIT RATINGS
ESG
APPENDIX
& LEGAL ENTITIES
Pension deficit reduction contributions
CET1 ratio headwinds from pension reduction contributions fully incorporated into prudent capital plan and CET1 target
As at 31 December 2020, the Group's IAS 19 pension surplus across all schemes was £1.5bn (December 2019: £1.8bn). The UK
Retirement Fund (UKRF), which is the Group's main scheme, had an IAS 19 pension surplus of £1.8bn (December 2019: £2.1bn). The YoY
movement for the UKRF was driven by a net decrease in the discount rate and changes to pension increase assumptions, partly offset by
higher than assumed asset returns
The latest annual update to the actuarial funding valuation as at 30 September 2020 showed the funding deficit had improved to £0.9bn
from the £2.3bn shown at the 30 September 2019 triennial valuation. The improvement was mainly due to £1.0bn of deficit contributions
paid over the year
Capital impact of deficit reduction contributions
(£bn)
2020
2021
2022
2023
2024
2025
2026
Sum
2020-26
(0.5)
Based on 2019 Triennial valuation
(0.5)
(0.7)
(0.3)
(0.3)
(paid in
(2.3)
Q419)1
Jun-2020 Investment in Senior Notes²
0.75
(0.25)
(0.25)
(0.25)
Capital impact (pre-tax)
0.25
(0.7)
(0.3)
(0.55)
(0.75)
(0.25)
(2.3)
Capital impact (bps) - based on Mar-21 RWAS
8bps
(22)bps
(9)bps
(17)bps
(24)bps
(8)bps
1 £500m paid in Q419 relates to the unwind of Senior notes | 2 Barclays Bank PLC asked the UKRF Trustee to consider an investment in a Senior note (similar to the issued note in December 2019) in order to manage the capital impact of 2020 contributions to the
UKRF |
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