Strong earnings growth and returns Good market positions Increased diversification by business line and geography Solid funding base Highly developed risk-management framework Relatively weak, although improved, capitalization compared with peers' Potentially increased earnings volatility through enlarged investment bank and international presence Large exposure to U.K. unsecured debt Balance sheet volatility arising from substantial defined-benefit pension fund 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 weak, although improving, capitalization, the potential increase in earnings volatility created by its expanded investment bank, its significant exposure to U.K. unsecured personal debt, and its large defined-benefit pension scheme and
