Barclays will continue to cut back on its debt to cover its costs, including interest payments on $5.7 trillion in unsecured loans, it said Wednesday.
The bank said it would reduce its debt-to-GDP ratio by 2.5 percentage points in 2020 and 5.5 points in 2021, according to its latest earnings report.
It said it was still evaluating its capital structure, and that it would be adding “more robust” riskier assets, such as a $1.3 trillion sovereign bond, as well as additional leverage, as part of its strategy to return to profitability.
Barclays said the debt ratio would fall by 1 percentage point from 2021 to 2024, to 1.5 from 2021 through 2023 and from 1.7 from 2021 and 2022 to 2024.
The bank said its total debt-servicing costs were expected to drop by $835 million, or 10.4 percent, in 2020, by reducing interest payments and deferring certain transactions.
The company said its capital adequacy ratio would increase by 1.4 percentage points to 6.6 percent in 2020 from 6.2 percent in 2021 and 2019.
Barcas has seen its share price drop nearly 70 percent since the start of the year.
Barclays shares fell more than 11 percent to $13.93 in early trade.
Barcelona, which is also in the process of completing a $500 million buyout of rival Barclays, said its balance sheet had been restructured to better fit its future growth strategy.
It said it planned to cut $1 billion in its debt by 2020 and 2021.
Its debt-service cost ratio will drop by 1,000 basis points to 1 percent in 2019 and 2020 from 2 percent in 2018 and 2019, it added.
The financial-services giant has said it needs to increase its share prices to reach its target of $20 billion by 2021.
It also said it plans to increase the number of senior executives and hire more than 4,000 people over the next two years.