Barclays 2010 Annual Report Download - page 25

Business review
Absa
As expected, 2010 was another challenging year given
a slow, uneven economic recovery both globally and in
South Africa. In particular, retail and corporate credit
demand and transaction volumes remained muted.
Nonetheless, Absa managed to report 17% higher profit
before tax, while continuing to invest significantly in our
strategic growth initiatives. Lower interest rates and our
enhanced collections capability improved our retail
impairments materially. Moreover, our margin hedging
strategy protected net interest income as rates fell to
36-year lows.
Our One Absa strategy is on track. It is enhancing business
as usual, improving sustainable growth in target areas and
strengthening the core fundamentals underlying our
operations. While we believe that our operating environment
will remain challenging, we also believe that we have the
right strategy to grow the business and generate the
returns that will keep us competitive.
As you know, Africa presents a significant opportunity
for Barclays and the decision to align Absa more closely
with Barclays Africa by executing One Bank in Africa
strategy gives us better opportunities to serve clients
across the continent, thereby enhancing our joint
competitive advantage.
Maria Ramos
Group Chief Executive, Absa Group Limited
Citizenship – Financial Inclusion
A key component of our strategy is to find innovative and cost effective
ways to serve Absa’s existing mass segment customers. As such in 2010
we launched a number of innovative offerings:
– a refocused branch approach called Absa 1234 offering transactional,
loan, savings and insurance products;
– a branchless banking approach which includes in-store banking
(deposits, withdrawals, balance inquiry, air time purchases) with the
merchant providing these services using a point of sale terminal with
our In-Store Banking application;
– a remote account opening service for savings and transmission
accounts using mobile phone technology; and
– a tap-and-go card product for low value payments.
Aligning Absa more closely
with Barclays Africa gives us better
opportunities to serve clients across
the continent
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 23
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