Barclays 2013 Annual Report Download - page 34

Company
Contribution to total income
£4,786m Adjusted
total income
£4,786m
2013 2012 2011
Income (£m) 4,786 4,344 4,305
Adjusted profit before tax (£m) 1,507 1,482 1,212
Adjusted ROE (%) 18.4 19.8 16.1
Loan loss rate (bps) 337 294 394
Loans and advances to customers (£bn) 35.6 33.8 31.0
Customer deposits (£bn) 38.9 38.2 34.8
Barclaycard continued to grow in all markets, with a net increase of
nearly three million new customers in 2013. Income improved 10% to
£4,786m reflecting continued net lending growth and contributions
from 2012 portfolio acquisitions.
The business incurred £49m of costs to achieve Transform, as it
continued to seek to become the ‘Go-To’ bank for consumer payments.
Adjusted operating expenses increased 11% to £2,048m reflecting
increased costs from 2012 portfolio acquisitions, net lending growth,
higher operating losses and costs to achieve Transform.
Barclaycard continued to deliver adjusted profit growth, improving 2%
to £1,507m driven by the US and UK card portfolios.
Total assets increased 2% to £38.9bn primarily driven by the increase
in loans and advances to customers across the UK and international
businesses.
For more information on performance, please see
pages 237 to 268
Future priorities
Barclaycard will become the ‘Go-To’ bank for consumer payments
through:
 Delivering simple, leading and innovative products to our retail
consumers and business clients that help them achieve their
ambitions – in the right way.
 Maintaining our track record of delivering strong financial
performance, and delivering against the Transform targets
through continued efficiencies, realising economies of scale,
diversifying our business model and using world class analytics.
 Attracting, developing and retaining colleagues of the highest
calibre and integrity.
 Continuing to have a positive impact in local communities by
creating sustainable relationships and using the skills of the
business and our colleagues to support these communities.
 Focusing on ‘the way we do business’ to ensure that our products
and services are industry-leading in transparency.
Barclaycard
continued
Through our customer focus, we have seen a 39% reduction in
complaints to a level of 3.12 per 1,000 accounts in 2013 and zero
high-rated Regulatory Compliance monitoring reviews.
Our leading products have received numerous industry awards,
including the Moneyfacts award for ‘Best Card Provider’ for both our
Balance Transfer rate (3rd year in a row) and Standard rate products in
the UK, being ranked 2nd among Visa/MasterCard issuers in the 2013
JD Power industry customer service rankings in the US and winning the
‘Best Corporate Card Provider’ at the Business Travel Awards.
Colleague
We are committed to attracting, developing and retaining colleagues of
the highest calibre and integrity. We continue to bring in the best talent
from diverse backgrounds, while developing our existing talent. We
ensure progression and rotation at all levels of the organisation and
follow a structured learning and leadership development programme
to develop our colleagues.
In 2013, we continued to make progress with our diversity agenda, with
34% women in senior leadership. We have also sustained high levels of
colleague engagement to ensure talent retention, with 95% of high
performers retained.
We have moved our Absa Card office to a new, world-class site in
Pretoria and won the Customer Service Training Network ‘Training
Programme of the Year’ award for our UK contact centres.
Citizenship
Barclaycard has continued to embed and contribute to the Barclays’
2015 Citizenship Plan.
We have continued to focus on ‘the way we do business’ to ensure we
are fair and transparent. We have simplified the Terms & Conditions of
many of our products.
We have ensured we are supporting the economy and contributing to
growth, including offering £15.8bn in new lending to businesses and
households in 2013, and adding a charity redemption category for
Freedom Rewards customers in the UK who want to donate their
collected points.
We are supporting our community through activities such as Royal
British Legion London Poppy Day, supporting poppy sales with our
colleagues and contactless terminals.
Conduct
We continue to rollout the Barclays Values and Behaviours,
empowering our Values Leaders to embed them with their colleagues.
Barclaycard continues to review policies and practices to identify and
proactively ensure that they continue to be simple, leading, innovative
and transparent, including those associated with handling PPI
complaints. We are committed to ensuring that we adhere to the
highest standards of conduct, proactively driving cultural change
through developing best-in-class conduct risk awareness training.
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32 Barclays PLC Annual Report 2013