Barclays 2013 Annual Report Download - page 26

Company
Contribution to total income
£666m Adjusted
total income
£666m
2013 2012 2011
Income (£m) 666 708 1,004
Loss before tax (£m) (996) (343) (767)
Adjusted ROE (%) (45.2) (12.9) (9.7)
Loan loss rate (bps) 75 64 43
Loans and advances to customers (£bn) 37.0 39.2 42.7
Customer deposits (£bn) 45.0 46.1 50.2
Distribution points 633 1,142 1,228
Europe RBB continued to focus on restructuring the cost base of its
business in 2013, as part of the Transform strategy. Income declined
6% to £666m, reflecting actions taken to reduce assets, particularly
in Spain and Italy, to address the continuing economic challenges
across Europe.
During the year the business reduced full time equivalent employees by
1,600 and closed over 500 distribution points. Operating expenses
increased by £435m to £1,242m, almost entirely reflecting costs to
achieve Transform of £403m.
Loss before tax increased £653m to £996m, including costs to achieve
Transform of £403m and an increase in other net expenses.
Europe RBB also rolled out a new Premier customer proposition,
targeting profitable growth from the mass affluent segment, in a drive
to increase margins.
Loans and advances to customers fell by 6% to £37.0bn, driven by
asset reduction activity as part of the Transform strategy.
For more information on performance, please see
pages 237 to 268
Future priorities
In 2014 we will:
 Grow Premier customers
Acquire new mass affluent customers
Deepen relationships with existing customers
 Continue to control costs by transitioning mass market customers
to lower cost channels over time
 Optimise the performance and accelerate the run-off of our less
attractive Exit Quadrant assets
Europe Retail and Business Banking (Europe RBB)
continued
These contributed to strong customer satisfaction and high customer
advocacy scores – in Portugal we ranked #1 for service quality in a
recent mystery shopping survey and in Spain we ranked the #2 ‘most
loved’ bank in a recent survey, well ahead of our mass affluent segment
competitors.
Colleague
We are committed to investing in our colleagues and encouraging the
right values and behaviours from them.
In 2013 we launched the ‘Premier Way’, a training program that enables
relationship managers to have confident, professional discussions with
clients about their holistic financial needs.
In 2014 this programme will expand to include financial planning as
well as giving colleagues access to externally recognised professional
qualifications.
Citizenship
We are implementing mechanisms to make citizenship part of what we
do every day, as well as inspiring our colleagues, clients and other
stakeholders to do the same.
In 2013 we implemented the Citizenship Lens into our processes for
approving new products.
We continued our commitment to local communities by investing in
employability programs for young people – Europe RBB colleagues have
contributed over 11,000 hours to help their local communities.
Conduct
We are dedicated to delivering the right outcomes for our customers.
In 2013 we raised awareness of conduct as a principal risk across the
business and launched a Code of Conduct to guide how we all should
work each day. We also commenced a programme to review critical
end-to-end processes and identify possible conduct issues – in doing
so identify potential mitigants to eliminate the gap between what our
customers expect from us and what we deliver to them.
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24 Barclays PLC Annual Report 2013