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    Paul Fenner-Leitao • Societe Generale Corporate and Investment Banking - SG CIB

    Paul Fenner-Leitao's questions to Barclays PLC (BCS) leadership

    Paul Fenner-Leitao's questions to Barclays PLC (BCS) leadership • Q2 2025

    Question

    Paul Fenner-Leitao from Societe Generale asked for clarification on a 2034 call date, future AT1 issuance plans, the mechanics behind the U.S. consumer bank's high cost of risk versus its NPLs, and what early warning signs of negative consumer behavior Barclays is monitoring.

    Answer

    Daniel Fairclough, Treasurer, clarified the 2034 call date relates to a legacy preference share, not new supply, and stated that AT1 issuance would be broadly balanced with calls for the year. Anna Cross, Group Finance Director, explained the U.S. cost of risk is elevated due to IFRS 9's forward-looking provisions, which assume a higher unemployment rate than currently observed. She added that Barclays monitors spending patterns and payment rates for consumer stress, both of which remain stable and reassuring.

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    Paul Fenner-Leitao's questions to Barclays PLC (BCS) leadership • Q2 2025

    Question

    Paul Fenner-Leitao from Societe Generale asked for clarification on a 2034 call date, future AT1 issuance plans, the mechanics behind the U.S. consumer bank's high cost of risk versus its NPLs, and what early warning signs of negative consumer behavior Barclays is monitoring.

    Answer

    Daniel Fairclough, Group Treasurer, clarified the 2034 call date relates to a legacy preference share, not new supply, and confirmed Barclays expects to be a broadly balanced AT1 issuer. Anna Cross, Group Finance Director, explained the U.S. cost of risk is elevated due to the procyclical nature of IFRS 9 and forward-looking economic models, not just current delinquencies. She added that they monitor spending patterns and payment rates for consumer stress, neither of which are currently showing negative trends.

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