Barclays 2014 Annual Report Download - page 2

Barclays PLC Annual Report 2014 barclays.com/annualreport
What is this report?
The 2014 Annual Report includes a Strategic Report that
summarises the key elements of the full report. The Strategic
Report is in line with the regulations and best practice as
advised by the Financial Reporting Council, and the Department
of Business, Innovation & Skills. The design changes this year
with increased infographics are intended to facilitate more
effective communication with all our stakeholders, and to
provide more concise and relevant narrative reports. These
objectives are entirely in line with our aim to become more
clear and transparent on our journey to be the ‘Go-To’ bank.
We will continue to engage with stakeholders to identify ways
in which we can further advance this agenda.
Notes
The term Barclays or Group refers to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement analysis
compares the year ended 31 December 2014 to the corresponding twelve
months of 2013 and balance sheet analysis as at 31 December 2014 with
comparatives relating to 31 December 2013. The abbreviations ‘£m’ and
‘£bn’ represent millions and thousands of millions of Pounds Sterling
respectively; and the abbreviations ‘$m’ and ‘$bn’ represent millions and
thousands of millions of US Dollars respectively.
The comparatives have been restated to reflect the implementation of the
Group structure changes and the reallocation of elements of the Head
Office results under the revised business structure. These restatements were
detailed in our announcement on 10 July 2014, accessible at barclays.com/
barclays-investor-relations/results-and-reports. Balance sheet comparative
figures have also been restated to adopt the offsetting amendments to IAS
32, Financial Instruments: Presentation.
References throughout this report to ‘provision for ongoing investigations
and litigation relating to Foreign Exchange’ means a provision of £1,250m
held as at 31 December 2014 for certain aspects of ongoing investigations
involving certain authorities and litigation relating to Foreign Exchange.
Adjusted profit before tax, adjusted attributable profit and adjusted
performance metrics have been presented to provide a more consistent
basis for comparing business performance between periods. Adjusting
items are considered to be significant but not representative of the
underlying business performance. Items excluded from the adjusted
measures are: the impact of own credit; goodwill impairment; provisions for
Payment Protection Insurance and claims management costs (PPI) and
interest rate hedging redress; gain on US Lehman acquisition assets;
provision for ongoing investigations and litigation relating to Foreign
Exchange; loss on announced sale of the Spanish business; and Education,
Social Housing, and Local Authority (ESHLA) loan valuation revision. As
management reviews adjusting items at a Group level, results by business
are presented excluding these items. The reconciliation of adjusted to
statutory performance is done at a Group level only.
Relevant terms that are used in this document but are not defined under
applicable regulatory guidance or International Financial Reporting
Standards (IFRS) are explained in the Results glossary that can be accessed
at barclays.com/results.
Forward-looking statements
This document contains certain forward-looking statements within the
meaning of Section 21E of the US Securities Exchange Act of 1934, as
amended, and Section 27A of the US Securities Act of 1933, as amended, with
respect to certain of the Group’s plans and its current goals and expectations
relating to its future financial condition and performance. Barclays cautions
readers that no forward-looking statement is a guarantee of future
performance and that actual results could differ materially from those
contained in the forward-looking statements. These forward-looking
statements can be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes use words
such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’,
‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of
similar meaning. Examples of forward-looking statements include, among
others, statements regarding the Group’s future financial position, income
growth, assets, impairment charges and provisions, business strategy, capital,
leverage and other regulatory ratios, payment of dividends (including dividend
pay-out ratios), projected levels of growth in the banking and financial
markets, projected costs or savings, original and revised commitments and
targets in connection with the Transform Programme and Group Strategy
Update, run-down of assets and businesses within Barclays Non-Core,
estimates of capital expenditures and plans and objectives for future
operations, projected employee numbers and other statements that are not
historical fact. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances. These
may be affected by changes in legislation, the development of standards and
interpretations under International Financial Reporting Standards (IFRS),
evolving practices with regard to the interpretation and application of
accounting and regulatory standards, the outcome of current and future legal
proceedings and regulatory investigations, future levels of conduct provisions,
the policies and actions of governmental and regulatory authorities,
geopolitical risks and the impact of competition. In addition, factors including
(but not limited to) the following may have an effect: capital, leverage and
other regulatory rules (including with regard to the future structure of the
Group) applicable to past, current and future periods; UK, US, Africa, Eurozone
and global macroeconomic and business conditions; the effects of continued
volatility in credit markets; market related risks such as changes in interest
rates and foreign exchange rates; effects of changes in valuation of credit
market exposures; changes in valuation of issued securities; volatility in capital
markets; changes in credit ratings of the Group; the potential for one or more
countries exiting the Eurozone; the impact of EU and US sanctions on Russia;
the implementation of the Transform Programme; and the success of future
acquisitions, disposals and other strategic transactions. A number of these
influences and factors are beyond the Group’s control. As a result, the Group’s
actual future results, dividend payments, and capital and leverage ratios may
differ materially from the plans, goals, and expectations set forth in the
Group’s forward-looking statements. Additional risks and factors are
identified in our filings with the SEC including our Annual Report on Form
20-F for the fiscal year ended 31 December 2013, which are available on the
SEC’s website at sec.gov and in our Annual Report for the fiscal year ended
31 December 2014, which is available on the Barclays Investor Relations
website at barclays.com/investorrelations.
Any forward-looking statements made herein speak only as of the date they
are made and it should not be assumed that they have been revised or
updated in the light of new information or future events. Except as required by
the Prudential Regulation Authority, the Financial Conduct Authority, the
London Stock Exchange plc (the LSE) or applicable law, Barclays expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect any
change in Barclays’ expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based. The
reader should, however, consult any additional disclosures that Barclays has
made or may make in documents it has published or may publish via the
Regulatory News Service of the LSE and/or has filed or may file with the SEC,
including the 2014 20-F.
The strategic report
An overview of our 2014 performance, a focus on our strategic direction,
and a review of the businesses underpinning our strategy.
We fulfil our purpose
and achieve our goal
By upholding clear
values and leading
by example
In this operating
environment
With a focus on
our stakeholders
Our approach
to value creation is
consistent
Through our broad
service offer
Purpose, goal
and values Pages 02-03
Pages 06-07
Page 05Market and risk
Business model
Building the
‘Go-To’ bank Page 04
Shareholder information and contact details
Useful references to manage your Barclays shareholding
Pages 343-346