Barclays 2011 Annual Report Download - page 22

Key performance indicators
Key Performance Indicators (KPIs) are used to
measure our success against each of the four
execution priorities.
We have made solid progress in 2011 through
improving the competitive position across all
of our businesses but we recognise there is still
work to do to achieve our medium term targets.
Capital
We have further improved our Core Tier 1 ratio to 11.0% through
generating capital organically and reducing risk weighted assets. We
therefore do not expect to seek additional capital from our shareholders
to meet future regulatory requirements. Our diverse funding sources and
strong liquidity pool of £152bn has minimised the cost of funding and
provided protection against unexpected market fluctuations, despite the
Eurozone crisis and subsequent market stress.
Returns
The Group continues to evolve and the strength of our universal banking
model helped to achieve balanced profits across our retail and business
banking and corporate and investment banking businesses but we
recognise that our Return on Equity was below our stated goal of 13%
for 2013. Although the worse than predicted macroeconomic conditions
as well as new regulatory constraints mean that we may not be able to
deliver 13% returns by 2013, we will continue to focus on delivering a
steady improvement in returns and achieve 13% over time.
Income growth
Total income has increased 3% and benefited from gains on own credit
and debt buy-backs. Excluding these items, total income declined 8%
impacted by the macro environment. However, we have improved the
competitive positions of all our major businesses and all businesses have
grown adjusted net operating income, with the exception of Barclays
Capital, which was most affected by difficult trading conditions. As we
deliver income growth, we remain focused on improving the quality of
assets to ensure that we do not grow at the expense of future impairment.
Citizenship
We have a clear sense of our business purpose – to help individuals,
businesses and economies progress and grow. We clearly demonstrated
this by delivering £45.0bn gross new lending to UK households and
businesses. We exceeded Project Merlin targets in providing £43.6bn
to UK businesses, including £14.7bn to SMEs. We also supported 10,000
first time buyers in the UK.
10.0% 10.8% 11.0%
2009 2010 2011
Core Tier 1 ratio
6.7% 7.2%
5.8%
2009 2010 2011
Return on equity
£29,123m
£31,440m £32,292m
2009 2010 2011
Total income
£35.0bn
£43.5bn £45.0bn
2009 2010 2011
Gross new lending to UK
households and businesses
For more detailed information, please see Financial Review page 159
20 Barclays PLC Annual Report 2011 www.barclays.com/annualreport