Barclays 2013 Annual Report Download - page 46

Company
Contribution to total income
£1,839m Adjusted
total income
£1,839m
2013 2012 2011
Income (£m) 1,839 1,820 1,770
Adjusted (loss)/profit before tax (£m) (19) 274 188
Adjusted ROE (%) (1.0) 11.2 9.5
Loan loss rate (bps) 51 17 21
Loans and advances to customers (£bn) 23.1 21.3 18.8
Customer deposits (£bn) 63.4 53.8 46.5
Total income of £1,839m remained broadly in line with the prior year,
as growth in deposit and lending balances, primarily in the High Net
Worth business, offset a lower net interest margin reflecting a change
in product mix and reduced contributions from structural hedges.
Credit impairment charges increased £83m to £121m, largely reflecting
the impact of deterioration in recovery values from property held as
security, primarily in Europe.
The business continued to implement its strategic programme to build
on its strengths, focus on target markets and simplify how it operates.
Adjusted operating expenses increased £241m to £1,750m largely
reflecting costs to achieve Transform of £158m.
Business growth remained robust with strong growth in client assets,
customer deposits and loans and advances to customers, which
increased 8% to £23.1bn primarily driven by growth in the High Net
Worth business.
For more information on performance, please see
pages 237 to 268
Future priorities
Wealth and Investment Management continues to be a key area
of growth within Barclays. Examples of how we will achieve
our strategy:
 Building on our strengths : a new direct to consumer offering for
‘DIY’ Buy and Hold investors – a growing and significant part of
the investor market. We are on track to develop this direct to
consumer offering, to be rolled out initially in the UK in 2015.
 Focus on competing where we can win: the strategic focus areas
for our business continue to be the UK, US and global high-net
worth hubs. In order to ensure that we are building a sustainable
business and managing risks effectively, we are reducing the
number of countries which we serve, taking into account the
impact on clients, colleagues and local markets.
 Simplifying how we operate: we are making changes to the way
we service our affluent clients in the UK with existing clients with
assets of less than £500,000 managed by a new team called
Private Clients.
Wealth and Investment Management
continued
Colleague
We are committed to engaging our colleagues and creating a diverse
and inclusive environment where they can fulfil their potential.
Following the launch of the Barclays Values and Behaviours, 96%
of Wealth and Investment Management employees had attended a
Values Workshop by June 2013, and we are making great progress in
embedding the Values and Behaviours into our business and decision
making. In September 2013, colleagues had the opportunity to reflect
on and absorb the strategy for Wealth and Investment Management:
2,200 colleagues in 26 locations around the world attended town halls
and strategy conversations. The Wealth and Investment Management
Global Diversity & Inclusion Council was established in 2013 with the
purpose of attracting and developing the most talented people from all
backgrounds.
Citizenship
Wealth and Investment Management contributes to the Barclays 2015
Citizenship Plan by embedding a citizenship ethos into the way we do
business, through our strategy, decision-making and investment
management approach. We will also contribute to growth by
supporting the development of social impact investing and managing
charity investments and support our communities through community
investment and client philanthropy.
Our colleagues contributed over 9,000 hours to support our
communities around the world in 2013.
Conduct
Effectively managing Conduct Risk is essential in building a sustainable
wealth management business. We are introducing a rigorous and
transparent Conduct Risk reporting and management framework
which ensures that the interests of clients and other stakeholders are
appropriately considered in all business decisions. In 2013 we
developed specific internal communications programmes to drive
awareness of this important risk and help employees understand how
their behaviours and decision making can specifically contribute to or
mitigate client harm. We are also embedding conduct risk discipline
into our business through a series of Material Risk Assessments
intended to prevent potential client issues before they occur.
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44 Barclays PLC Annual Report 2013