Barclays 2012 Annual Report Download - page 24

Corporate Banking is an integral part of Barclays universal banking
offering. We help over 40,000 corporations achieve their ambitions.
This includes multinational corporates and financial institutions
globally, and domestic corporations in the UK and South Africa.
Corporate Banking has stable revenues and is self-funded.
Our clients
We work closely with clients to fully understand their business and
build long term, broad-based relationships. As a result, in the UK
no other bank achieved a higher rating for overall client satisfactiona.
We continue to strive for ever better client servicing, and in 2012 a
Global Corporates team was established jointly between Corporate
Banking and the Investment Bank. The objective is to strengthen
existing client relationships and provide more corporate banking
solutions to the treasuries of our largest multinational clients.
In 2012 we launched the new Cash Management offering, Pingit for
Corporates, providing clients with more efficient and convenient ways
to manage payments. We also continued to invest in our client
servicing model.
We continue to focus on products that are important to our clients,
and therefore invest in our Cash Management and Trade Finance
capabilities. Key initiatives are underway, and in 2012, we launched our
cash management platform Barclays.net, and invested in Trade Finance
hubs in key locations. We are also in the process of enhancing an
integrated Corporate Banking offering with Absa across Africa.
Our citizenship initiatives
We are actively engaged with government initiatives to support the UK
economy – Corporate Banking clients benefited from Barclays being the
first among UK banks to fully utilise our NLGS allocation, lending a total
of £1.5bn through our innovative Cashback Finance Scheme offering.
This continues with Cashback for Business loans through the Funding
for Lending Scheme. We are also an important partner for local
governments and other government institutions for loans and other
financial services.
Note
a Source: Charterhouse Research based on 2,076 interviews with companies
turning over between £5m and £1bn carried out in Q4 2012.
Our 2012 performance
2012 2011 2010
Income (£m) 2,918 3,108 3,162
Adjusted profit/(loss)
before tax 551 204 (314)
Adjusted ROE (%) 5.5 1.7 (3.7)
Loan loss rate (bps) 128 156 219
Loans and advances
to customers (£bn) 80.5 84.1 82.5
Customer deposits (£bn) 97.1 85.2 79.0
Performance is continuing in its positive trend, with a reduction
in both costs and impairments, and substantial improvement to
return on equity. A £850m charge was incurred for interest rate
hedging product redress. We are self-funded, and customer
deposits are up 14%.
Underlying income is resilient despite increased funding charges
and the challenging economic environment. Non-core activities
are being actively restructured and non-core assets reduced as
we refocus our business.
For more detailed financial information
please see pages 197-225
Our priorities for 2013
 Become the ‘Go-To’ bank for multinational corporations and
financial institutions globally, and domestic corporations in
the UK and South Africa, by supporting their financing and
servicing needs.
 Maintain market-leading rating of client satisfaction in the UK.
 Continue to enhance our product capabilities in Cash
Management and Trade Finance.
 Continue to improve profitability, supported by increased
cross-selling with the Investment Bank, Barclaycard and Wealth
and Investment Management.
 Reinforce client confidence and focus on good conduct across
the business by improving controls and standards.
We work closely with clients to
achieve their potential through cash
management, loans, trade finance
and risk management services.
Contribution to total income
£2,918m
barclays.com/annualreport22 I Barclays PLC Annual Report 2012
Business review
Corporate Banking