Barclays PLC

The positive outlook reflects our view that Barclays is delivering a stronger, more consistent business profile and financial performance. In particular, we think its management team continues executing the strategy aiming the group to benefit from its diversified business model. We expect it to navigate resiliently the increasingly difficult and highly uncertain environment with rising energy prices and cost of living and growing geopolitical risks. We think Barclays' provision coverage is prudent and appropriately anticipates potentially deteriorating asset quality due to a worsening economy. We project impairment charges will continue increasing in 2022 from very low levels in 2021, assuming that resumed economic growth will support new business and asset quality in line with our base-case forecasts. We also expect

...A diversified business model supports the group's earnings resilience. Barclays PLC's business portfolio combines retail and commercial banking, cards and payments, and corporate and investment banking. This diversification helped the group's resilience through the COVID-19 pandemic and is supportive to overall performance. Barclays' consistent management and strategy are helping realize the potential of its business model. The positive outlook reflects S&P Global Ratings' expectation that Barclays' franchise and creditworthiness will likely strengthen because of its stable management and consistent strategy execution. Its performance has been resilient through the pandemic, and we expect stronger earnings in 2022-2023, provided the global economy recovers. An upward revision of our '###+' group stand-alone credit profile (SACP) on Barclays would lift its position in the '###' to 'a' range for its peer group. Rising interest rates will boost earnings. Similar to U.K. peers, rising interest...

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