Barclays 2013 Annual Report Download - page 42

Corporate Banking
continued
We are committed to helping businesses succeed and achieve their
ambitions, no matter how complex or challenging. Our clients benefit
from in-depth sector expertise – over 45 sector teams, and tailored
industry research.
Our products and services are regularly recognised through industry
awards, e.g. in 2013:
 Best Trade Bank in the UK – Global Trade Review
 Best Domestic Cash Manager in the UK – Euromoney
 Best Trade Bank in Africa – Treasury Management International
 UK Education Lender of The Year – for the fourth year running
We are constantly looking for ways to make our client interactions as
simple and instant as possible – whether that is reducing time to set-up
new client accounts or providing our front-line teams with iPads to
deliver more insight directly to clients.
We see technology as a key means of responding proactively to clients’
changing needs. We continue to roll-out Barclays.net (our internet-
based cash management service) and Pingit for Corporates, which now
allows clients to complete a full spectrum of payment options via their
smartphone.
Colleague
Corporate Banking continues to invest in our colleagues to ensure they
are fully engaged, motivated and supported to provide excellent client
service.
We continue to promote a globally diverse and inclusive environment
where all colleagues can fulfil their potential.
Priorities include driving sustainable engagement, gender diversity and
developing the potential of our workforce.
Citizenship
Every day Corporate Banking employees make a real difference; helping
individuals, communities and businesses grow.
Primarily, we support businesses by lending money prudently. In 2013, we
provided loans and advances of £61.1bn. Over 1,600 SME clients benefitted
from the Cashback for Business scheme.a We paid £24m in cashback and
have committed a further £6m. We have also continued to support the
Business Growth Fundb – with a commitment of £500m in equity.
In addition, our colleagues contributed almost 30,000 hours
volunteering in their local communities.
Conduct
We are focused on delivering the right outcomes for our clients.
Managing the conduct risks that arise in our business is fundamental to
our success in becoming the ‘Go-To’ bank. This means proactively looking
out for our client’s best interests and acting with integrity at all times.
In advancing our Interest Rate Hedging Products redress, 32% of the
in-scope population now have review outcomes. We are progressing well
and are on track to meet our commitments to the FCA. We expect to have a
substantial majority of all customers at the redress offer stage by mid-year.
In line with other Barclays divisions, we are in the process of
formalising our Conduct Risk reporting and management framework.
This framework will ensure that client interests are being taken into
account appropriately in all our business decisions. It includes
everything from our business model and strategy through to ensuring
our products are designed and sold in the right way.
Company
Contribution to total income
£ 3,115 m Adjusted
total income
£3,115m
2013 2012 2011
Income (£m) 3,115 3,046 3,315
Profit/(loss) before tax (£m) 151 (390) (5)
Adjusted ROE (%) 3.1 2.9 0.4
Loan loss rate (bps) 77 127 153
Loans and advances to customers (£bn) 61.1 64.3 68.3
Customer deposits (£bn) 108.7 99.6 87.5
Corporate Banking continued to make good progress in pursuing its
turnaround strategy, which increased momentum in 2013. Total income
increased 2% to £3,115m reflecting an increase in UK income, partially
offset by non-recurring income from a reduction from Exit Quadrant
assets in Europe and previously exited businesses.
Credit impairment charges declined 42% to £510m largely driven by
Europe, which saw charges reduce by £224m to £318m following
ongoing action to reduce exposure to the property and construction
sector in Spain. Charges were also lower against large corporate clients
in the UK.
Costs to achieve Transform were incurred to further invest in the
ongoing client business, as well as rationalise the offering within
Europe and Rest of World. Adjusted operating expenses increased 6%
to £1,806m including costs to achieve Transform of £114m.
Performance improved across all regions in 2013, with the UK franchise
continuing to deliver strong results. Adjusted profit before tax improved
74% to £801m. UK adjusted profit before tax improved 14% to £948m.
Loans and advances to customers decreased 5% to £61.1bn driven by
the rundown of Exit Quadrant portfolios in Europe and a reduction in
client demand as working capital deposits increased in the UK.
For more information on performance, please see
pages 237 to 268
Future priorities
Become the ‘Go-To’ bank for domestic corporations in the UK and
South Africa and multinational corporations and financial
institutions globally by satisfying their financing and servicing
needs.
 Maintain market-leading rating for client satisfaction in the UK
 Continue to provide responsible lending to support growth for
viable businesses
 Continue to strengthen our cross-border product offerings in
Cash Management and Trade Finance
 Continue to improve profitability, supported by helping clients to
access banking solutions from the Investment Bank, Barclaycard
and Wealth
 Drive cost efficiencies and actively managing our balance sheet
 Further strengthen our strong culture standards and controls to
help clients achieve their commercial ambitions in the right way
Notes
a Cashback for Business offers 2% cashback to SMEs who take out a loan under the scheme.
b Business Growth Fund provides equity to businesses with a turnover of £5-100m
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40 Barclays PLC Annual Report 2013