Barclays 2011 Annual Report Download - page 27

Divisional review
Corporate and Investment Banking
Against a backdrop of challenging economic and
market conditions, results for Barclays Capital
were resilient compared with the industry,
and the business held or gained market share.
The year also saw Barclays Corporate return
to profitability driven by a strong underlying
performance in the UK business.
Our Corporate and Investment Banking business provides clients with
loans, financing, risk management, strategic advice and transactional
payments support. It supports corporate clients to achieve growth and
job creation in the real economy, governments to deliver their stability
and growth plans, and institutions to meet the long-term investment
needs of their clients.
Against a backdrop of challenging economic and market conditions,
results for Barclays Capital were resilient compared with the industry.
Profit before tax fell 32%, driven by a 22% reduction in income. However
we held or gained market share, and continued to win recognition for our
client focus – including Euromoney’s Best Global Investment Bank and
IFR’s Bank of the Year.
The strength of our client-focused model means that we are bringing
clients integrated solutions that draw expertise from across the
organisation. We continued to see real client benefits in 2011 from
managing the business in a more integrated way, to bring clients the best
of Barclays.
Revenues generated from delivering Barclays Capital products to Barclays
Corporate clients increased 28% year on year, and 73% over the past
three years, while revenues from delivering Barclays Corporate products
to Barclays Capital clients are up 20%.
The substantial improvements we have seen in the results for Barclays
Corporate reflect the significant progress we’ve made across every aspect
of the business in 2011, delivering on a clear growth strategy and turning an
adjusted loss of £388m in 2010 into an adjusted profit of £126m in 2011.
We have continued to take a disciplined approach to investment across
Corporate and Investment Banking. Our focus remains on building our
platform in those areas where we see real opportunity to deliver an
advantage for our clients.
Barclays Capital continues to strengthen its Equities and Investment
Banking franchises in EMEA and Asia Pacific, and Barclays Corporate has
expanded its hubs in Frankfurt, Hong Kong, Singapore and New York.
Our success in securing 16 Corporate Broking mandates in the UK last
year is a good example of the strength and reputation we are building in
our newer businesses.
We remain committed to our targets for returns, income growth and
cost management. Through continued uncertainty in the markets, and
in the global economy, we will continue to focus relentlessly on the
needs of our clients.
Through continued uncertainty in the
markets, and in the global economy, we will
continue to focus relentlessly on the need of
our clients.
Jerry del Missier and Rich Ricci
Co-Chief Executives, Corporate and Investment Banking
For more detailed information, please see Analysis of results
by business page173
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 25
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