Barclays 2004 Annual Report Download - page 8

Barclays had a record year in 2004, demonstrating the strength and
flexibility of its strategy. A combination of good returns from prior
investment and the continued strong pace of investment during 2004
means that we are in good shape to deliver profitable growth in the
future.
Profit before tax increased by 20%. Our return on equity was 19%.
Asset quality remained strong. We maintained our strong capital
position, with a tier 1 capital ratio of 7.6%. We increased the
dividend 17%.
The task of every generation of leadership is to take performance to
the next level and that is what we are determined to do. I want the
new era of leadership, building on the profound transformation of the
last years, to be characterised by growth. Looking back at it, growth
was what 2004 was all about.
Our financial performance is built on a clear and simple understanding
of what Barclays exists to do: we move, lend, invest and protect money,
for customers and clients of all kinds. By doing this we achieve our
overall business purpose: this is to help our customers and clients
achieve their goals. We hope thereby to create value for them and earn
their loyalty. If we do this well we will deliver consistently good returns
to shareholders.
Our business model is that of a universal bank comprising businesses
that create additional value for shareholders beyond the sum of the
parts by virtue of the synergies inherent in the business mix.
We have a global perspective in developing our business. We are
seeking to produce a blend of earnings drawn from our businesses in
the UK and from high growth global product businesses and selected
retail and commercial banking businesses outside the UK.
You can see our approach at work in how we performed during 2004.
We saw earnings surge in businesses with strong overseas exposure
such as Barclays Capital and Barclays Global Investors, and in the
Private Clients and International businesses.
You can also see it in our strategic decisions during the year.
We acquired Juniper Financial Corporation to create a US arm for
our international credit card strategy; and we are in negotiations to
acquire a controlling stake in Absa, one of the leading banks in the
Republic of South Africa.
6
Customers doing more business with us
Group Chief
Executive’s statement
“Barclays had a record year
in 2004, with profit before
tax up 20% and dividends
increased by 17%. The task of
every generation of leadership
is to take performance to the
next level and that is what we
are determined to do. I want
the new era of leadership,
building on the profound
transformation of the last years,
to be characterised by growth.”
John Varley, Group Chief Executive