Barclays 2013 Annual Report Download - page 246

Financial review
Key performance indicators continued
Performance metric Definition Why it is important to the business and management
Citizenship Plan – number of initiatives on
track or ahead
The KPI tracks overall performance against
11 metrics based on the 2015 Citizenship Plan
commitments.
1. Attestation to ‘Barclays Way’ Code of
Conduct;
2. Reduction in Global Carbon Emissions;
3. Percentage of suppliers paid on time;
4. New and renewed lending to households;
5. New and renewed lending to SMEs;
6. Assist in raising financing for businesses
and governments;
7. Number of SMEs supported with seminars,
tools and training;
8. Number of apprenticeships at Barclays;
9. Monetary investment in the community;
10. 10-35 year olds supported in building
skills; and
11. Citizenship Reputation (YouGov Survey).
The 2015 Citizenship Plan provides the
framework and targets for Barclays’ approach
to positively impact the communities in which
we operate. The KPI demonstrates how
Barclays is making progress against 11 metrics
based on the 2015 Citizenship Plan
commitments across three areas: the way
we do business, contributing to growth and
supporting our communities.
2013 – 10/11
2018 Target – Meet all Plan Targets (11/11)
Conduct KPIs
Performance metric Definition Why it is important to the business and management
Conduct Reputation (YouGov survey) This measure is developed through a Conduct
Reputation survey, conducted by YouGov,
across opinion formers including MPs,
business and political stakeholders, media,
non-governmental organisations, charities,
think tanks and other general opinion formers
(drawn from academia, public sector, arts/
leisure, professionals and religion).
Demonstrates progress in improving Barclays’
Conduct Reputation through improvements in
reputation across areas of trust, openness and
transparency, delivering value for money for
customers and clients, having high quality
products and services and how Barclays treats
staff at all levels of the business.
2013 – 5.2/10
2018 Target – 6.5/10
Company KPIs
Performance metric Definition Why it is important to the business and management
Return on Equity (Adjusted) RoE is calculated as profit for the year
attributable to ordinary equity holders of the
parent divided by average shareholders’ equity
for the year excluding non-controlling and
other equity interests. Shareholders’ equity is
made up of share capital, retained earnings
and other reserves.
Adjusted RoE excludes post tax adjusting
items for movements in own credit, gains on
debt buy-backs, provisions for PPI and interest
rate hedging products redress, and goodwill
impairment. Average shareholders’ equity for
adjusted RoE excludes the impact of own
credit on retained earnings.
This measure demonstrates progress in
achieving a return on equity in excess of cost
of equity. Achieving a return on equity in
excess of cost of equity in a sustainable way
demonstrates the organisation’s ability to
generate long-term returns for our
shareholders.
Adjusted
2013 – 4.5%
2018 Target – > Cost of Equity
CRD IV fully loaded CET1 ratio Capital requirements are part of the regulatory
framework governing how banks and
depository institutions are managed. Capital
ratios express a bank’s capital as a percentage
of its risk weighted assets as defined by the
UK PRA.
In the context of CRD IV, the CRD IV fully
loaded CET1 ratio uses a measure of capital
that is predominantly common equity as
defined by the Capital Requirements
Regulation.
The CRD IV fully loaded CET1 ratio is a key
measure of Barclays’ capital strength in the
new regulatory framework. This measure will
demonstrate Barclays’ progress in achieving a
CRD IV fully loaded CET1 ratio exceeding
10.5%.
2013 – 9.3%
2018 Target – > 10.5%
Citizenship KPIs
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244 Barclays PLC Annual Report 2013