Our issuance needs in 2017 are evolving to reflect our strategic progress
Issuance focussed on MREL build:
- Target £3-5bn equivalent Senior HoldCo, £1.2 equivalent issued to date
- No active need for AT1
- No active need for Tier 2
Returning to modest funding activity:
- Reintroduce regular secured funding
- Participant in the Term Funding Scheme
- Tactical unsecured funding
Manage stack for value, balancing factors including: current & future regulatory value; relative funding cost; and Rating Agency considerations
Illustrative future MREL requirements versus estimated existing position
Based on illustrative £200bn RWA and static regulatory requirements(1)
(1) Illustrative only, both RWA and future capital requirements subject to change.
(2) Based on TLAC 1 Jan 2019 = 16% RWA; MREL 1 Jan 2020 = 2x Pillar 1 and 1x Pillar 2A, MREL 1 Jan 2022 = 2x Pillar 1 and 2x Pillar 2A. Pillar 2A requirement held constant over the period for illustration purposes. Requirement is expected to vary over time and is subject to at least annual review. Note, End state requirements to be met by 1 January 2022 are subject to review by the end of 2020. For further information on TLAC and MREL, including associated leverage requirements, please refer to ‘Capital sufficiency’ disclosure in the 2016 Annual Report & Accounts.
(3) 2020 MREL requirement not required to be met by CRDIV compliant regulatory capital.
(4) For further information please see ‘Loss Absorbing Capital’ disclosure in 2016 Annual Report & Accounts.