Barclays says passes 2016 BoE stress test
Barclays notes the publication of stress test outcomes for UK banks by the Bank of England. Under the BoE's assessment of the effects of the modelled adverse stress scenario, Barclays' minimum stressed Common Equity Tier 1 ratio over the period 2016-20 was 8.3%. The minimum ratio occurred in 2017 of the test period and exceeded the systemic reference point for that year after the impact of strategic management actions and conversion of Additional Tier 1 securities. Barclays has not been asked to submit a revised capital plan. Barclays says, "The starting point for the 2016 stress test was an 11.4% CET1 ratio as at 31 December 2015, which compares to a CET1 ratio of 11.6% as at 30 September 2016. In addition, on 21 November 2016 Barclays' G-SIB buffer was reduced from 2.0% to 1.5%. Over the course of 2016 Barclays has made strong progress with the accelerated rundown of Non-Core and reduced its stake in Barclays Africa Group Limited as it moves towards regulatory deconsolidation, which together with organic capital ratio accretion has strengthened and de-risked the Group. These factors would have reduced the impact of the 2016 stress tests. The minimum stressed Tier 1 leverage ratio was calculated at 3.4% after CRD IV related restrictions and 3.0% before such restrictions, passing both the 3.4% systemic reference point, and the 3.0% minimum threshold. Barclays reported a 4.5% Tier 1 leverage ratio as at 31 December 2015, which was the starting point for the stress test modelling."