Barclays 2012 Annual Report Download - page 18

UKRBB is our UK-based high street retail bank network and brand
presence for the Group. UKRBB provides customer referrals for
Barclaycard, Wealth and Investment Management and Corporate
Banking; and retail banking platforms and infrastructure.
UKRBB has over 15 million personal customers, one million of whom
are classified as mass-affluent and serves over 750,000 businesses.
Our strategy is to develop and deliver simple and transparent products,
run on scalable infrastructure and we invest heavily to try to enhance
our customers’ experiences.
In October, Barclays agreed to acquire the deposits, mortgages and
business assets of ING Direct UK. It is a good fit with our existing
business and will be integrated into UKRBB. Completion is expected
in March 2013, subject to approval.
Our customers
We have put the customer in control by developing services and
propositions that they can personalise to suit their needs. Our new
current account proposition, Features Store, allows customers to tailor
their banking relationship across a range of free and paid for features,
whilst over 400,000 customers have taken advantage of the ability to
personalise their debit card.
Barclays Mobile Banking app, Pingit and Text Alerts were launched
with the aim of making customers’ lives much easier. These services
help people to do their everyday banking, track payments and to send
and receive money at any time, wherever they are. We also changed
to a customer service based incentive scheme for our frontline staff,
to ensure that our customers remain at the heart of our business.
Our colleague, conduct and citizenship initiatives
The large majority of our UKRBB colleagues remain involved and
positive about their work, with 94% saying they are very committed.
We have continued to enhance our colleague offering as we strive
to be their employer of choice.
In 2012 we continued to find ways to positively impact the
communities in which we operate. Barclays Money Skills helped one
million people to manage their money more effectively and Barclays
Apprentice Programme was launched to help tackle the problem of
youth unemployment in the UK.
For small businesses, we provided support and advice through
seminars and workshops across the UK; and we are fully supportive of
Government schemes designed to boost lending to UK SMEs. We are
proud to have been number one in the market place for both Funding
for Lending Scheme (FLS) and National Loan Guarantee Scheme (NLGS)a.
Business review
UK Retail and Business Banking (UKRBB)
We aim to become the ‘Go-To’ bank
in the UK by making our customers’
lives much easier.
Our 2012 performance
2012 2011 2010
Income (£m) 4,421 4,656 4,518
Adjusted profit before tax 1,472 1,420 889
Adjusted ROE (%) 16.0 14.9 9.9
Loan loss rate (bps) 21 44 70
Loans and advances
to customers (£bn) 128.2 121.2 115.6
Distribution points 1,593 1,625 1,658
In 2012 UKRBB generated £4.4bn of income and an adjusted
return on equity of 16%, whilst prudently controlling credit
and operational risk.
Income reductions principally due to non-recurrence of gains from
the disposal of hedging instruments in 2011 were more than offset
by significant reductions in credit impairment charges. Loans and
advances to UK customers and clients grew by £7bn, including an
estimated £4.4bn under the FLS where we have committed to pass
all associated funding cost benefits to customers. A £1.2bn charge
for the cost of PPI redress was incurred.
For more detailed financial information
please see pages 197-225
Our priorities for 2013
 Provide a differentiated experience to customers by launching
new digital assets to make their lives much easier. Continue to
drive the adoption of initiatives launched in 2012.
 Focus on cost management, building on the work carried out
in 2012 to achieve a cost to income ratio in the mid-50’s by 2015.
 Complete the acquisition and integration of ING Direct UK.
 Continue investing in our colleagues and focussing on embedding
Group values to do business – in the right way.
Note
a Cumulative net stock lending for Q3 2012 as per Bank of England publication
in December 2012: http//www.bankofengland.co.uk/markets/Pages/FLS/
data.aspx
Contribution to total income
£4,421m
barclays.com/annualreport16 I Barclays PLC Annual Report 2012