Barclays 2009 Annual Report Download - page 21

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 19
Goals
As I stated at the time of our Interim Results last August, our key output
goal is to produce top quartile total shareholder returns (TSR) over time.
We achieved that goal for 2009, generating a TSR of 80% for 2009, at the
upper end of our peer groupc. But I recognise that for many shareholders the
starting point from which this return was generated was unacceptably low.
We will continue to measure our performance against this output goal.
We will carefully manage multiple input goals. These include economic
profit; overall balance sheet size and leverage; risk weighted assets (RWAs)
and the returns they generate; the level of our Core Tier 1 capital; our return
on equity; our overall funding and liquidity positions, and our loan to deposit
ratio as part of this; our comparative income and cost performance (the
‘jaws’); and dividend payments.
Our medium-term goal is to generate an average return on equity that
exceeds our cost of equity over the cycle. In 2009 and again in 2010, the
combination of very high levels of capital and the relatively high cost of
capital make this a very stretching target. But we are well aware of the
direction in which our shareholders expect us to be moving in this context,
and we have constructed our medium-term plans accordingly.
Conclusion
We have over 144,000 employees worldwide who have helped us weather
the economic storm of the last two and a half years. They have not allowed
the events in the market place to distract them from attending to the needs
of those they serve; on behalf of the Board, I thank them warmly. They are as
determined as I am that we shall meet the expectations of our owners in the
year ahead, by putting the resources of the Group to work on behalf of our
customers and clients.
John Varley
Group Chief Executive
Notes
aOn consistent year end loans and advances balances and impairment at average 2008
foreign exchange rates.
bThe following have been promoted to the Group Executive Committee: Antony Jenkins,
Chief Executive of Global Retail Banking; Tom Kalaris, Chief Executive of Barclays Wealth;
Rich Ricci, Co-Chief Executive of Corporate and Investment Banking; Jerry del Missier,
Co-Chief Executive of Corporate and Investment Banking; Maria Ramos, Chief Executive
of Absa; Mark Harding, Group General Counsel; Robert Le Blanc, Chief Risk Officer;
Cathy Turner, Group Head of Human Resources and Corporate Affairs.
cTSR (Total Shareholder Return) is defined as the value created for shareholders through
share price appreciation, plus reinvested dividend payments and is compared against a peer
group containing Banco Santander, BBVA, BNP Paribas, Citigroup, Deutsche Bank, HSBC,
JP Morgan Chase, Lloyds Banking Group, Royal Bank of Scotland, Unicredit and UBS.
Maintaining strategic momentum
Premier, full-service, global
investment bank delivering
through the cycle
Providing holistic solutions for customers
Strong client franchise reflected by
top-line income of £17.9bn; up 81%
The past year has seen us deliver on our vision to be a premier,
full-service, global investment bank. This means we have the
scope and the scale to compete against the very best firms in
all the different businesses in all of the different regions. Our
Fixed Income, Currency and Commodities businesses (FICC)
are top three globally, and our new Equities and M&A advisory franchises
are building real momentum and delivering excellent results. Our vision
means achieving leading positions for our clients in every region and in
every business in which we compete.
Our clients continue to come to us with their business challenges,
and we are using the breadth and depth of our expertise to help address
their needs comprehensively. We are expertly placed to service the needs
of our clients, whether it’s a government looking to raise syndicated debt,
an institutional investor wanting to increase its equities exposure or a
large corporate undertaking a rights issue. We provide holistic solutions
for our clients.
This is what we mean when we say that our client focus is driving
our business. We are helping our clients to meet their challenges, and the
scope of how we can help them is wider than ever. And this is what makes
Barclays Capital such an exciting place to be right now. We are now one of
a handful of leading global, full-service investment banks. Our businesses
are growing with speed, discipline and focus, resulting in a full-service
offering much greater than the sum of those businesses.
We’re having new conversations with existing clients. We’re
delivering for clients we’ve never worked with before. And we’re using
the strength of our full-service franchise to make a real difference to
their success.
Further information on Barclays Capital is available at
www.barclays.com/annualreport09