Barclays 2012 Annual Report Download - page 20

One Africa strategy
Barclays in Africa comprises a local Retail and Business Bank, along
with a local presence for Barclays global businesses – Barclaycard,
Corporate Banking, Investment Bank and Wealth and Investment
Management. Africa provides the Group with emerging market
exposure and a promise of growth. Together, we serve over 14.3 million
customers and clients across 12 countries.
In 2012, we consolidated our Barclays Africa and Absa banking
operations into a single management structure. In 2013, subject to
the receipt of regulatory approvals, the majority of Barclays Africa
businesses and Absa will be brought under one legal entity to create
a leading pan-African financial services business.
Our One Africa strategy focuses on broadening services in leading
markets and investing in new geographies.
Our customers and clients
As part of our goal to make customers and clients lives much easier,
we continued to drive innovation, for example, by rolling out several
new online banking services to customers across Africa.
We deployed our global, regional and local capabilities to the benefit
of our corporate clients in landmark deals, such as the partnership of
Kenya Airways and Barclays Bank of Kenya with Visa to relaunch an
airline co-branded credit card. Other major deals included the inaugural
$0.5bn Zambia Sovereign benchmark issuance, that was 20 times
oversubscribed; and project financing of $1.5bn for ExxonMobil/NNPC
to develop 27 oil wells in Nigeria.
Life insurance products have been launched in Botswana, Mozambique,
Zambia and Ghana via our bancassurance model, through the Barclays
branch network. Two new Islamic banking products have been
launched in Kenya by leveraging Group capabilities and synergies.
Our colleague, conduct and citizenship initiatives
As part of our citizenship strategy, we adhere to laws, regulations and
codes, ensuring that we make responsible decisions in how we manage
the business and sustain ourselves into the future.
We continued to participate in a range of community initiatives such
as the Nelson Mandela Day in South Africa and Make a Difference Day
campaign across Africa, where 7,211 volunteers were involved. In 2012,
11,705 colleagues volunteered to the benefit of communities across the
continent.
Africa Retail and Business Banking (Africa RBB)
Barclays Group reports Africa RBB separately and the following
information relates specifically to the Retail and Business Bank.
Our global businesses participating in Africa are integrated within
each business report.
Our 2012 performance
2012 2011 2010
Income (£m) 3,157 3,571 3,512
Adjusted profit before tax 468 830 649
Adjusted ROE (%) 3.8 9.7 8.7
Loan loss rate (bps) 194 129 125
Loans and advances
to customers (£bn) 31.7 34.4 43.1
Distribution points 1,451 1,493 1,543
Africa RBB generated income of £3.2bn in 2012, however, profit
and returns both decreased. This was primarily due to currency
fluctuations and increased impairment charges relating to the South
African home loans recovery book and the impact of one large
name in the commercial property portfolio. In local currency, loans
and advances to customers remained broadly stable, while
customer deposits increased by 7%.
For more detailed financial information
please see pages 197-225
Our priorities for 2013
 Drive sustainable growth by completing the Retail and Business
Banking transformation; whilst restoring income growth; grow
corporate and investment banking in Africa; deepen and expand
in core markets in line with One Africa strategy.
 Build out the platform by embedding the integrated target
operating model to support scale, growth and efficiency, drive
innovation and digital capabilities.
 Have the customer and client at the core, by optimising core
customer processes and customer and client segmentation;
realign businesses to a customer/client centric approach.
 Drive people centricity, by aiming to attract, retain, stretch, and
develop top talent and reward competitively; promote a conductive
environment for engaged, motivated and empowered colleagues.
 Focus on control and compliance by continuing to embed a risk
awareness culture that balances commerciality and control.
We combine global product knowledge
with regional expertise and our extensive
and well-established local presence
in Africa.
Contribution to total income
£3,157m
barclays.com/annualreport18 I Barclays PLC Annual Report 2012
Business review
Africa