Our goal
Is to become the bank of choice for our clients, customers, colleagues and our stakeholders
Achieving this will enable us to build a lower-risk, better performing bank
Achieving this will enable us to build a lower-risk, better performing bank
Individuals, corporations, countries and society need access to essential banking services
Review of the year: Significant progress in 2014
I am encouraged by the significant progress we have made in 2014. We've improved financial performance, we've strengthened our capital ratios and we've continued to drive down costs.
Barclays Group Finance Director
Our outcome statements help us focus on what becoming a bank of choice means for all of our stakeholders
We are the bank of choice for our customers and clients.
Our colleagues are fully engaged. We create a diverse and inclusive environment where they can fulfil their potential.
We have a positive impact on the communities in which we operate.
Our products and services are designed and distributed to meet our clients' needs. We act with integrity in everything we do.
We create sustainable returns above the cost of equity. We understand and effectively manage risk, and continuously improve control.
More information on this can be found on home.barclays
We continue to be proactive in adapting to the external environment
We continually take action to achieve our goal and deliver value to shareholders. Proactive management of our Principal Risks ensures we are addressing the external factors that impact our operating environment.
Credit Risk: Financial loss should customers not fulfil contractual obligations to the Group.
Market Risk: Earnings or capital impact due to volatility of trading book positions or inability to hedge the banking book balance sheet.
Funding Risk: Failure to maintain capital ratios and liquidity obligations leading to inability to support normal business activity and meet liquidity regulatory requirements.
Operational Risk: Losses or costs resulting from human factors, inadequate internal processes and systems or external events.
Conduct Risk: Detriment caused to our customers, clients, counterparties, or the Bank and its employees through inappropriate judgement in execution of business activities.
Reputation Risk: Damage to Barclays brand arising from any association, action or inaction perceived by stakeholders as inappropriate or unethical. From 1st January 2015, Reputation Risk will be combined with Conduct Risk.
Delivering our obligations to shareholders while meeting society’s needs in a responsible manner
Our approach delivers broader economic benefits and a more valuable service to our stakeholders in the unique way we do business
Strategy
Our Transform programme was launched in 2013 to deliver our strategy of reshaping Barclays to generate sustainable returns and to meet the needs of all our stakeholders.
The combined effect of external factors impacting our operating environment led to decisive action in three areas announced on 8th May 2014
Building further on our strengths by concentrating resources on our Core activities. Transform how we interact with customers and the experience we can deliver to them in our retail and corporate businesses, and shift our Investment Bank to be more driven by clients’ origination needs, bringing greater balance to Barclays.
A focus on Core parts of the Group where we see major opportunities – Barclaycard and Africa. We are commited to leading innovation in consumer payments; technology should enable us to achieve growth by reaching more customers. With 8.6m new customers in the last 3 years at Barclaycard, we’ll generate efficiencies and economies of scale through selective acquisition.
Assets and activities no longer of strategic value, given structural shifts in the operating environment or their sub-scale nature, have been brought together within Barclays Non-Core, to be managed separately for capital efficient, yet rapid exit.
With a focus on running down Non-Core operations to provide investment for the Core growth businesses
2013 Total Risk weighted assets (RWAs):
£440bn
2016 Total Target RWAs:
c.£400bn
We have set 2016 Transform targets to demonstrate our commitment towards our ultimate goal
Capital
CRD IV Fully loaded CET1 ratio >11%
Leverage
Leverage ratio >4.0%
Dividend
Payout ratio 40-50%
Returns
Adjusted Return on Equity >12%
Cost
Adjusted operating expenses <£14.5bn
Returns
Drag on adjusted RoE <(3%)
Our businesses
Reorganised to a simpler, more focused, more balanced and much stronger business structure
£25,728m
£5,502m
6.5p
Personal and Corporate Banking
We are succeeding by putting our customers and clients at the centre of everything we do and by continuing to do this we will become the partner of choice for the UK ecosystem.
Chief Executive, Personal and Corporate Banking
Personal and Corporate Banking (PCB) is a powerhouse with the potential to challenge the traditional UK banking landscape.
Barclaycard is a top 10 consumer payments provider globally. In a business where winning is dependent on scale, innovation, analytics and risk management, we have strength across the board.
Chief Executive, Barclaycard
Africa Banking is uniquely placed to promote economic development as we bring expertise and clients to Africa, and provide African customers with access to global markets.
Chief Executive, Africa Banking
From our unique position with dual home markets and truly global reach, we are transforming the Investment Bank so that we can continue to help our target clients achieve their ambitions.
Chief Executive, Investment Bank
Barclays Non-Core is responsible for the divestment of Barclays non-strategic assets and businesses.
Performance
Measures progress and performance against our goal
Stakeholders and metrics
We have agreed eight key measures categorised into the 5Cs against which our stakeholders can hold us to account. We are committed to monitoring and reporting on our progress annually.
Metric |
Actual 2013 |
Actual 2014 |
Target 2018 |
|
---|---|---|---|---|
Customer & Client |
PCB, Barclaycard and Africa Banking weighted average ranking of Relationship Net Promoter Score© (NPS) vs. peer sets |
3rda |
4th |
1st |
Customer & Client |
Client Franchise Rank: Weighted average ranking of wallet share or customer satisfaction with priority clients in the Investment Bank |
N/A |
5th |
Top 3 |
Colleagues |
Sustained engagement of colleagues score |
74% |
72% |
87-91% |
Colleagues |
% women in senior leadership |
21% |
22% |
26% |
Citizenship |
Citizenship Plan - initiatives on track or ahead |
10/11 |
11/11 |
Plan targets |
Conduct |
Conduct Reputation (YouGov survey) |
5.2/10 |
5.3/10 |
6.5/10 |
Company |
Adjusted Return on Equity |
4.1%b |
5.1% |
>Cost of equity |
Company |
Fully loaded CRD IV CET1 ratio |
9.3%c |
10.3% |
>11%d |
Notes
a Revised due to creation of PCB as part of the May 2014 Strategy Update. Corporate clients now contribute to the NPS metric, and no longer contribute to the Client Franchise
Rank.
b Revised from 4.5%, post the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition being treated as an adjusting item.
c Revised from 9.3%, post full implementation for CRD IV reporting in 2014.
d Revised from >10.5% following the Strategy Update.
Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld. Under the Companies Act 2006, we are also required to report on the gender breakdown of our employees and ‘senior managers’. Of our global workforce of 132,300 (65,200 male, 67,100 female), 732 were senior managers (596 male, 136 female), which include Oficers of the Group, certain direct reports of the Chief Executive, heads of major business units, certain senior managing directors and directors on the boards of undertakings of the Group, but exclude individuals who sit as directors on the board of the Company.
We aim to be the bank of choice.
Metric |
Actual 2013 |
Actual 2014 |
Target 2018 |
---|---|---|---|
PCB, Barclaycard and Africa Banking weighted average ranking of Relationship Net Promoter Score© (NPS) vs. peer sets |
3rda |
4th |
1st |
Client Franchise Rank: Weighted average ranking of wallet share or customer satisfaction with priority clients in the Investment Bank |
N/A |
5th |
Top 3 |
Notes
a Revised due to the creation of PCB as part of the May 2014 Strategy Update. Corporate clients now contribute to the NPS metric, and no longer contribute to the Client Franchise Rank
Within three days of a fire destroying the Barclays branch at Jomo Kenyatta International Airport in Nairobi, the local team had set up a temporary branch - in a tent. A shining example of putting customers first.
We create an environment where they can fulfil their potential.
Metric |
Actual 2013 |
Actual 2014 |
Target 2018 |
---|---|---|---|
Sustained engagement of colleagues score |
74% |
72% |
87-91% |
% women in senior leadership |
21% |
22% |
26% |
The 'This is me' campaign, launched in May 2014, has given colleagues the freedom to talk about mental health and their personal story, and created access to resources, support, advice and information.
We have a positive impact on the communities in which we operate.
Metric |
Actual 2013 |
Actual 2014 |
Target 2018 |
---|---|---|---|
Citizenship Plan - initiatives on track or ahead |
10/11 |
11/11 |
Plan targets |
Over 1000 investors, with over $34 trillion in assets, have signed up to the UN Principles of Responsible Investment. These principles aim to encourage investors to invest in a socially-responsible manner.
We aim to act with integrity in everything we do.
Metric |
Actual 2013 |
Actual 2014 |
Target 2018 |
---|---|---|---|
Conduct Reputation (YouGov survey) |
5.2/10 |
5.3/10 |
6.5/10 |
Protecting our clients' money and financial information, we can't be 'too careful'. We have even introduced an automated email checker to identify the potential risk of even a single misplaced click.
We seek to effectively manage risk and create sustainable returns.
Metric |
Actual 2013 |
Actual 2014 |
Target 2018 |
---|---|---|---|
Adjusted Return on Equity |
4.1%b |
5.1% |
>Cost of equity |
Fully Loaded CRD IV CET1 ratio |
9.1%c |
10.3% |
>11%d |
Notes
b Revised from 4.5%, post the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition being treated as an adjusting item.
c Revised from 9.3%, post full implementation for CRD IV reporting in 2014.
d Revised from >10.5% following the Strategy Update.
We developed an automated system to test new apps across hundreds of handsets that ensures our mobile innovations are in our customers’ hands quickly and reliably.
The Board sets direction and provides oversight and control, acting as an independent check and balance to the Executive team, whose responsibility it is to run the business. Our role is to:
Remuneration
Remuneration for executive Directors continues to be tied closely to our strategy and performance
The table shows a single total figure for 2014 remuneration in respect of qualifying service for each executive Director.
Read the full remuneration report in the Annual Report (PDF 4.9MB)
2015 (£000) |
Salary |
Role Based Pay |
Taxable benefits |
Annual bonus |
LTIP |
Pension |
Total |
---|---|---|---|---|---|---|---|
Antony Jenkins |
1,100 |
950 |
100 |
1,100 |
1,854 |
363 |
5,467 |
Tushar Morzaria |
800 |
750 |
95 |
900 |
- |
200 |
2,745 |
Remuneration for non-executive Directors reflects their responsibility and time commitment and the level of fees paid to non-executive Directors of comparable major UK companies.
Chairman
2014 (£000) |
Fees |
Benefits |
Total |
Notes |
---|---|---|---|---|
Sir David Walker |
750 |
598 |
598 |
John McFarlane joined the Board as a non-executive Director with effect from 1 January 2015 and as Chairman from 24 April 2015. The total includes non-executive Director fees of £78,000 for the period from 1 January 2015 to 24 April 2015 |
Non-executive Directors
2014 (£000) |
Fees |
Benefits |
Notes |
---|---|---|---|
Mike Ashleya |
213 |
- |
213 |
Tim Breedon |
240 |
- |
240 |
Fulvio Contib |
37 |
- |
37 |
Simon Fraserc |
47 |
- |
47 |
Crawford Gilliesd |
91 |
- |
91 |
Reuben Jeffery III |
160 |
- |
160 |
Wendy Lucas-Bulle |
105 |
- |
105 |
Dambisa Moyo |
151 |
- |
151 |
Frits van Paasschenf |
80 |
- |
80 |
Sir Michael Rake |
250 |
- |
250 |
Diane de Saint Victorg |
135 |
- |
135 |
Sir John Sunderland |
190 |
- |
190 |
Steve Thiekeh |
131 |
- |
131 |
David Boothi |
- |
- |
- |
Sir Andrew Likiermanj |
- |
- |
- |
Non-executive directors are reimbursed expenses that are incurred for business reasons. Any tax that arises on these reimbursed expenses is paid by Barclays.nThe Chairman is provided with private medical cover and the use of a company vehicle and driver when required for business purposes.
Notes
a Mike Ashley joined the Board as a non-executive Director with effect from 18 September 2013.
b Fulvio Conti retired from the Board as a non-executive Director with effect from 24 April 2014.
c Simon Fraser retired from the Board as a non-executive Director with effect from 24 April 2014.
d Crawford Gillies joined the Board as a non-executive Director with effect from 1 May 2014.
e Wendy Lucas-Bull joined the Board as a non-executive Director with effect from 19 September 2013.
f Frits van Paasschen joined the Board as a non-executive Director with effect from 1 August 2013.
g Diane de Saint Victor joined the Board as a non-executive Director with effect from 1 March 2013.
h Steve Thieke joined the Board as a non-executive Director with effect from 7 January 2014.
i David Booth retired from the Board as a non-executive Director with effect from 31 December 2013.
j Sir Andrew Likierman retired from the Board as a non-executive Director with effect from 25 April 2013
Downloads
Barclays PLC Annual Report 2014 (PDF 4.9MB)
Barclays Bank PLC Annual Report 2014 (PDF 4.5MB)
Barclays PLC Strategic Report 2014 (PDF 2.2MB)
Barclays PLC Pillar 3 Disclosures 2014 (PDF 1.3MB)
Barclays PLC Pillar 3 Disclosures – T&Cs of Capital Resources 2014 (PDF 413KB)
Barclays PLC Form 20-F 2014 (PDF 7.2MB)
The AGM 2015
Where: Royal Festival Hall in London.
When: The 2015 AGM was held at 11:00 (UK time) on Thursday, 23 April 2015.