Barclays 2012 Annual Report Download - page 23

Our 2012 performance
2012 2011 2010
Income (£m) 11,722 10,335 13,209
Adjusted profit before tax (£m) 4,063 2,965 4,389
Adjusted ROE (%) 13.7 10.4 13.5
Cost: net income ratio (%) 64 71 65
Compensation: income ratio (%) 39 47 43
In spite of a backdrop of challenging economic and market conditions,
we have continued to maintain or gain share across all of our core
businesses. Profit before tax increased 37% to £4bn driven by strong
income growth and reduced operating expenses, resulting in an
adjusted ROE of 14%.
Total income increased 13% with strong performance within FICC and
Equities and Prime Services. This increase, combined with a reduction
in operating costs, while at the same time absorbing the £193m
settlement in relation to LIBOR and EURIBOR, reduced the cost to
net income ratio to 64%; within the targeted range of 60% to 65%.
We remain committed to evolving our business in line with changing
regulation and the developing needs of all our stakeholders.
For more detailed financial information
please see pages 197-225
Our priorities for 2013
 Continuing to provide leading execution and advisory services.
 Creating innovative products and technologies to meet the evolving
needs of our clients.
 Adapting our business to meet new regulatory requirements.
 Gaining or maintaining share in all core businesses.
 Delivering sustainable reductions to our cost and capital base
through efficiency improvements and RWA management.
 Developing a best in class control environment.
 Providing a meritocratic environment in which our best employees
are able to thrive.
 Making a positive difference to the communities with which
we interact, through supporting business growth and providing
assistance through volunteering and fundraising initiatives.
Our strategy in action: Case Study
When GDF SUEZ, one of the world’s largest listed utility
companies, proposed in March 2012 to make an offer for the
remaining 30% stake in International Power, the UK listed
international electricity generating company in which GDF SUEZ
already owned a 70% shareholding, Barclays was corporate broker
to International Power and acted as joint financial adviser to
International Power on the transaction.
The transaction followed on from a combination of International
Power and certain of GDF SUEZ’s assets which closed in February
2011 and resulted in GDF SUEZ owning 70% of the issued share
capital of International Power. The 2012 transaction valued the
entire share capital of International Power at c£23bn, delivered
a c20% premium to International Power shareholders, in addition
to the premium reflected in the 2011 transaction.
The transaction represented a major strategic step in GDF SUEZ’s
development enabling it to take full control of a unique platform
for development in fast growing countries. The transaction will
also enable GDF SUEZ to receive the full benefit of the synergies
generated from the initial combination.
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