Barclays 2012 Annual Report Download - page 14

How we will get there
Our journey to ‘Go-To’ has begun,
but transformational change takes time.
We will monitor and measure our progress
in a balanced and relevant way.
Achieving our goal
Our Transform Programme is
the road map to achieving our
goal and purpose
Transforming Barclays and the way we do business –
becoming the ‘Go-To’ bank – will be a long, challenging, but
also exciting journey. The outcome will be worth the effort.
The quality and commitment of the people at Barclays,
combined with our underlying financial strength, means
we start our transformation from a good position.
Barclays Strategic Review, commenced in Q4 2012, is part
of a long term programme to transform the culture and
performance of Barclays over the next three to five years.
In a realistic timeline
Stabilise the
organisation,
provide context
for the change to
come, maintain
short term
momentum
Improve business
returns, define
and execute plan
to deliver RoE
above CoE
Become the
‘Go-To’ bank,
for our stakeholders
– customers and
clients, colleagues,
investors and
wider society
0-9 months
Turnaround
0-3 years
Return Acceptable Numbers
0-5 years
Sustain FORward Momentum
By focusing on what matters
Barclays Strategic Review concluded that we will:
 Focus solely on activities that support customers and clients
in geographic markets and businesses where Barclays has scale
and competitive advantage
 Focus investment in the UK, US and Africa, while maintaining
an appropriate presence across Europe and Asia to support
our global investment banking franchise
 Restructure Barclays European retail operations to focus on
the mass-affluent customer segment
 Reposition Barclays European and Asian Equities and the
Investment Banking Division businesses to reflect the market
opportunities and maintain a relevant proposition for our
clients
 Close the Structured Capital Markets business unit
 Manage Risk Weighted Assets (RWAs) more efficiently through
a run-off of legacy assets in Europe and the Investment Bank
and invest in high-return businesses such as UK mortgages,
Barclaycard and Wealth and Investment Management
 Reduce total costs significantly across the Group by operating
more efficiently
And delivering on our commitments
We are making a series of commitments against which progress
can be tracked. We will update against these commitments every
six months:
Non-financial commitments
 Provide greater disclosure and transparency around our financial
performance
 Embed our Purpose and Values across Barclays and publish an
annual scorecard assessing our performance
Financial commitments
 Target return on equity for the Group in excess of the Group
cost of equity in 2015, which we have assumed will remain at the
current 11.5% level
 In 2013, reduce headcount by at least 3,700 across the Group,
including 1,800 in the Corporate and Investment Bank and 1,900
in Europe Retail and Business Banking
 Aim to reduce the Group’s total cost base by £1.7bn to £16.8bn
in 2015, including interim cost estimates of £18.5bn and £17.5bn
in 2013 and 2014 respectively
 Target RWAs of £440bn by the end of 2015
 Report a transitional Common Equity Tier 1 ratio in 2015 above its
target of 10.5%
 From 2014, accelerate our progressive dividend policy, targeting
a payout ratio of 30% over time
barclays.com/annualreport12 I Barclays PLC Annual Report 2012