Barclays 2013 Annual Report Download - page 242

Financial review
Key performance indicators continued
Performance metric Definition
Why it is important to the business and
performance update
Estimated PRA leverage ratio In June 2013 the PRA announced the results of
its review of the capital adequacy of major UK
banks and building societies. As part of its
review, the PRA introduced a 3% leverage
ratio target – a non risk-based ratio calculated
as fully loaded CET1 capital after PRA
adjustments together with CRD IV qualifying
Tier 1 and divided by a PRA adjusted CRD IV
leverage exposure.
In order to achieve the PRA 3% leverage ratio
target by June 2014, Barclays announced a
series of actions, including an underwritten
Rights Issue, measures to reduce Barclays’
CRD IV leverage exposure, and the continued
execution of Barclays’ capital plan with the
issuance of CRD IV qualifying AT1 securities.
The estimated PRA leverage ratio increased to
just under 3.0% (30 June 2013: 2.2%),
reflecting a reduction in the PRA leverage
exposure of £196bn and an increase in eligible
PRA adjusted Tier 1 Capital to £40.5bn (30
June 2013: £34.2bn). The increase included
£2.1bn of AT1 securities and a £1.9bn
reduction in PRA adjustments to CET1 to
£2.2bn largely driven by an elimination of the
additional PRA add-on for PVA. The estimated
CRD IV fully loaded leverage ratio increased to
3.1% (30 June 2013: 2.5%).
Leverage plan target: PRA leverage ratio of at
least 3.5% by the end of 2015 and a range of
3.5% to 4% beyond 2015.
2013 – 3.0%
2015 Target – 3.5%
Target beyond 2015 – 3.5-4%
Leverage Plan
barclays.com/annualreport
240 Barclays PLC Annual Report 2013