Strong earnings growth and returns Good market positions Increased diversification by business line and geography Solid funding base Highly developed risk-management framework Relatively tight capitalization compared with peers' Potentially increased earnings volatility through enlarged investment bank and international presence Large exposure to U.K. unsecured debt Substantial defined-benefit pension fund and IAS 19 deficit The ratings on U.K.-based Barclays Bank PLC (Barclays) reflect its strong earnings and returns, good market positions, increased diversification, solid funding base, and highly developed risk-management framework. The ratings also reflect its relatively tight capital management, the potential increase in earnings volatility created by its expanded investment bank, its significant exposure to U.K. unsecured credit quality, and its large defined-benefit pension scheme and associated IAS 19 deficit.
