Barclays 2014 Annual Report Download - page 23

barclays.com/annualreport Barclays PLC Annual Report 2014 I 21
How we are doing
Becoming ‘Go-To’
Africa Banking is a diversified, full-service financial
services provider.
What we do
We offer an integrated set of products and services across retail and
business banking, corporate and investment banking, wealth
management and insurance to almost 12 million customers in Africa.
With our long-standing presence in 12 African markets and integration
with Barclays Group globally, we offer deep local knowledge and
presence, combined with the expertise and support of a global bank.
By helping our customers and clients achieve their ambitions we play
a key role in empowering and developing Africa.
Africa is the second fastest growing continent with clear potential for
strong long-term economic growth. Our competitive advantage lies in
our ability to combine global product knowledge with regional expertise
and an extensive, well-established local presence. We translate this
advantage into tangible benefits for customers and clients, and aim
to become their bank of choice in Africa. In implementing this strategy,
we are focused on turning around our retail and business banking
operations, growing our corporate franchise across the continent,
expanding our wealth, investment management and insurance offerings
across Africa, as well as investing in and developing our talent.
This will enable us to become ‘top 3’ by revenue in our five largest
African markets – South Africa, Kenya, Ghana, Botswana and Zambia.
Market environment and risks
South Africa’s economic growth contracted due to prolonged mining
strikes, the engineering sector strike and persistent electricity shortages.
African markets outside South Africa remained resilient but growth
slowed in some markets because of country-specific shocks, tighter
monetary policy and weaker commodity prices.
This changing environment presents us with both opportunities and
risks. Intensified regulatory and government intervention, while leading
to increased compliance costs and complexity of doing business,
supports a sound operating environment. Other risks stem from
macro-economic headwinds; in South Africa, high levels of consumer
indebtedness have resulted in banks’ tightened lending standards and
economic growth is expected to remain sluggish. We have taken steps to
manage our risk profile, monitoring execution risks carefully and closely
tracking progress against our strategic initiatives. While South Africa
remains the largest part of our business, operations in our other African
geographies add diversity and the opportunity of higher growth to our
portfolio. We are already seeing the benefits in our 2014 results.
Africa
Banking
‘Africa Banking is uniquely placed
to promote economic development
as we bring expertise and clients
to Africa, and provide African
customers with access to
global markets’
Maria Ramos
Chief Executive, Africa Banking
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How Africa Banking contributes to
our Balanced Scorecard
Customer and client
Q RBB & WIMI: Relationship NPS® 4th (Target 1st in 2018)
Q CIB: Compound annual growth rate in client franchise
contribution: 13% (Target 11% in 2018)
Colleague
Q Sustained engagement of colleagues’ score: 73%
(Target 84% in 2018)
Q Women in senior leadership: 29.6% (Target 35% in 2018)
Q Senior black management (EE) in S. Africa: 32.2%
(Target 60% in 2018)
Citizenship
Q 42,876 SMEs supported with seminars, tools and training
Q 824 apprenticeships/learnerships
Q £10m Community investment spend and over 14k
colleagues mobilised to volunteer their time and expertise
Conduct
Q Conduct reputation (YouGov survey): 7.4/10a
(Target 7.7/10 in 2018)
Company
Contribution to the Group 2014 2013 2012
Income (£m) 3,664 4,039 4,314
Profit before tax (£m) 984 1,049 1,019
Adjusted ROE (%) 9.3 8.1 7.2
Loan loss rate (bps) 93 128 158
Loans and advances to
customers (£bn) 35.2 34.9 41.2
Customer deposits (£bn) 35 34.6 39.7
Note
a Botswana, Ghana, Kenya, South Africa and Zambia.
Contribution to the Group’s total income
£m
£3,664m
Total income net of insurance claims
decreased 9% on prior year. On a constant
currency basis, it increased 7%.
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