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    Jonathan Pierce • Jefferies

    Jonathan Pierce's questions to Barclays PLC (BCS) leadership

    Jonathan Pierce's questions to Barclays PLC (BCS) leadership • Q2 2025

    Question

    Jonathan Pierce sought clarity on the structural hedge, asking where the tailwind post-2026 comes from. He also questioned the capital plan, asking if Barclays could operate at the lower end of its 13-14% CET1 target range in the medium term, which could free up significant capital versus consensus expectations.

    Answer

    Group Finance Director Anna Cross clarified the structural hedge comment, stating simply that the average yield on the hedge in 2027 will still be below the 3.5% reinvestment rate, providing a continued tailwind. On capital, she affirmed that 13-14% remains the right target range given regulatory uncertainties, and emphasized that the plan is designed to create a bank with both higher returns and higher capital, ensuring consistency for distributions and investment.

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    Jonathan Pierce's questions to Barclays PLC (BCS) leadership • Q1 2025

    Question

    Jonathan Pierce from Jefferies asked if Barclays now intends to operate closer to a 14% CET1 ratio, possibly for an acquisition. He also questioned the robustness of IFRS 9 models, given their low sensitivity to severe downside scenarios.

    Answer

    Executive Angela Cross reiterated guidance to operate in the top half of the 13-14% range, stating high capital generation is an intentional result of the plan, with a focus on organic deployment. Executive Coimbatore Venkatakrishnan added that prudence is warranted. On IFRS 9, Angela Cross clarified the disclosures are sensitivities, not predictive scenarios, and don't capture all dynamic effects like stage migration.

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