Barclays 2013 Annual Report Download - page 41

 Corporates increasingly use debt markets and other alternative
sources of finance and non-UK banks have increased competition.
To strengthen our market position we continue to expand our
financing product capabilities, as well as to deepen existing, and
acquiring new, client relationships.
Balanced Scorecard
Helping people
achieve their
ambitions in the
right way
Customer and client
Corporate Banking is focused on becoming the ‘Go-To’ bank for
business, corporate and institutional clients.
We work closely with clients to fully understand their business and
continuously strive for better client service. As a result, no other bank
achieved a higher rating from their Corporate Banking clients in the UK
for overall satisfaction in 2013.a
Note
a Source: Charterhouse Research based on 2,200 interviews with companies turning
over between £5m and £1bn carried out in YE Q4 2013. Survey data is weighted by
turnover and region to be representative of the total market in Great Britain. Sum of
top two box responses – Excellent and Very Good.
Corporate Banking remains an attractive business, with
companies searching for strong banking partners.
However, the economic and regulatory environment
continues to be challenging.
The global corporate banking market is still growing and profitable
although with significant differences across geographies, customer
segments and sectors.
 UK economic recovery is gathering pace
 Signs of improvement in the European economy
 The multinational corporates segment will grow faster than large/
mid-Corporates segment. However, top clients in this segment are
targeted by both global and specialised local competitors
Risks to our business model
The corporate banking industry is facing a number of risks that we
have anticipated and are planning to mitigate:
 Some sectors and geographies will likely remain challenging
particularly if interest rates rise. This could trigger increases in loan
loss rates particularly in the UK where loan loss rates are at a
Corporate Banking historical low. We proactively review and manage
our exposure to all clients. We have a proven record of supporting
businesses through their difficulties and minimising credit losses.
 In contrast, low interest rates may cause margins to compress. We
continue to strengthen our market position by expanding our cash
management product offering.
 Cybercrime and technology disruptions remain a risk. Barclays actively
works to increase the resilience and enhance the security of its
banking systems by fully supporting UK government and other banks’
initiatives to increase system availability and reduce industry risks.
Contributing to income by
 Self-funding client lending with deposits
 Earning stable interest income from
lending
 Generating fees for providing
transactional services
 Earning share of the income from
referrals to Barclaycard, Wealth and
Investment Bank
 Minimising impairment through
responsible lending and supporting
clients back to financial health
Contributing to strategy
Our journey to ‘Go-To’ Corporate Banking is focused on:
 Strengthening our core UK, European and African franchise
 Developing innovative products and services
 Driving cost efficiencies and running down Exit Quadrant assets in Europe
 Reinforcing our strong culture and improving our controls
 Enhancing synergies across the Barclays Group to further improve our innovative and comprehensive client offering
 Putting things right where we get it wrong
Bring diverse benefits…
 A stable banking partner for the long-term
 Secure place for deposits
 Competitive financing
 Enhanced client experience
 Tailored financial solutions
 Access to innovative banking products
and services
 Reliable payments and transactions across
multiple currencies
Sustaining business by
Helping businesses achieve their
commercial ambitions…
 Developing long-term relationships that
benefit the clients and provide on-going
income for Barclays
 Providing clients with day-to-day
products and services to help them
successfully operate their businesses
…in the right way
 Applying responsible lending practices
 Providing fit-for purpose risk
management
 Assisting clients to come back to
financial strength
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