Barclays 2012 Annual Report Download - page 2

The strategic report
The term ‘Barclays PLC Group’ or the ‘Group’ means Barclays PLC together with its subsidiaries
and the term ‘Barclays Bank PLC Group’ means Barclays Bank PLC together with its subsidiaries.
‘Barclays’ and ‘Group’ are terms which are used to refer to either of the preceding groups when
the subject matter is identical. The term ‘Company’, ‘Parent Company’ or ‘Parent’ refers to
Barclays PLC and the term ‘Bank’ refers to Barclays Bank PLC. In this report, the abbreviations
‘£m’ and ‘£bn’ represent millions and thousands of millions of pounds sterling respectively;
the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars
respectively; ‘€m’ and ‘€bn’ represent millions and thousands of millions of euros respectively and
‘C$m’ and ‘C$bn’ represent millions and thousands of millions of Canadian dollars respectively.
Unless otherwise stated, the income statement analyses compare the 12 months to 31 December
2012 to the corresponding 12 months of 2011 and balance sheet comparisons, relate to the
corresponding position at 31 December 2011. Unless otherwise stated, all disclosed figures relate
to continuing operations. Relevant terms that are used in this document but are not defined under
applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained
in the glossary online at www.barclays.com/annualreport. A hard copy can be provided on request
by contacting Barclays Investor Relations, Barclays PLC, 1 Churchill Place, London E14 5HP.
Adjusted profit before tax and adjusted performance measures have been presented to provide
a more consistent basis for comparing business performance between periods. Adjusted profit
before tax is explained further on page 24 and defined in the online glossary at www.barclays.
com/annualreport
Forward-looking statements
This document contains certain forward-looking statements within the meaning of Section 21E
of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities
Act of 1933, as amended, with respect to certain of the Group’s plans and its current goals
and expectations relating to its future financial condition and performance. Barclays cautions
readers that no forward-looking statement is a guarantee of future performance and that actual
results could differ materially from those contained in the forward-looking statements. These
forward-looking statements can be identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements sometimes use words such as “may”, “will”, “seek”,
“continue”, “aim”, “anticipate”, “target”, “projected”, “expect”, “estimate”, “intend”, “plan”,
“goal”, “believe”, “achieve” or other words of similar meaning. Examples of forward-looking
statements include, among others, statements regarding the Group’s future financial position,
income growth, assets, impairment charges, business strategy, capital ratios, leverage, payment
of dividends, projected levels of growth in the banking and financial markets, projected costs,
commitments in connection with the Transform Programme, estimates of capital expenditures
and plans and objectives for future operations and other statements that are not historical fact.
By their nature, forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances, including, but not limited to, UK domestic, Eurozone and global
macroeconomic and business conditions, the effects of continued volatility in credit markets,
market related risks such as changes in interest rates and foreign exchange rates, effects of
changes in valuation of credit market exposures, changes in valuation of issued notes, the policies
and actions of governmental and regulatory authorities (including requirements regarding capital
and Group structures and the potential for one or more countries exiting the Eurozone), changes
in legislation, the further development of standards and interpretations under IFRS and prudential
capital rules applicable to past, current and future periods, evolving practices with regard to the
interpretation and application of standards under IFRS, the outcome of current and future legal
proceedings, the success of future acquisitions and other strategic transactions and the impact of
competition, a number of such factors being beyond the Group’s control. As a result, the Group’s
actual future results may differ materially from the plans, goals, and expectations set forth in the
Group’s forward-looking statements.
Any forward-looking statements made herein speak only as of the date they are made. Except
as required by the UK Financial Services Authority, the London Stock Exchange plc (the “LSE”) or
applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to reflect any change in
Barclays expectations with regard thereto or any change in events, conditions or circumstances
on which any such statement is based. The reader should, however, consult any additional
disclosures that Barclays has made or may make in documents it has published or may publish
via the Regulatory News Service of the LSE and/or has filed or may file with the US Securities and
Exchange Commission.
The Annual Report includes certain information required to be included in the joint Barclays PLC
and Barclays Bank PLC Annual Report on Form 20-F for 2012. Form 20-F will contain as exhibits
certificates pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, signed by the
Group Chief Executive and the Group Finance Director.
Tough questions, honest answers
Barclays is changing. We are changing the way we do
business, changing the type of business we do and setting
a new course for the future. That means we are listening
more than ever before, to our customers and clients, our
employees and to all of the people our work impacts.
The portraits that appear in this Annual Report are of
real Barclays customers. The tough questions featured
throughout are the ones that we have been consistently
asked, throughout this year by our stakeholders.
More detail can be found online at
www.barclays.com/annualreport
An overview of our 2012 performance,
a focus on our new strategic direction,
and a review of the businesses
underpinning our strategy
Group overview 02
Our businesses 03
Chairman’s statement 04
Group Chief Executive’s review 08
What we want to be 10
How we will get there 12
How we create value 14
Business review
UK Retail and Business Banking (UKRBB) 16
Europe Retail and Business Banking (Europe RBB) 17
Africa 18
Barclaycard 19
Investment Bank 20
Corporate Banking 22
Wealth and Investment Management 23
Group Finance Director’s review 24
Risk 26
Corporate Governance 28
Citizenship 30
Summary remuneration report 32