Barclays 2015 Annual Report Download - page 23

home.barclays/annualreport Barclays PLC Annual Report 2015 I 21
Our purpose
We are focused on our goal to be the bank of
choice in Africa. Our growth strategy is based on
a unique competitive advantage – we are an
African bank that is fully local, fully regional and
fully international.
How the business is structured and what we provide to the Group
Africa Banking is a diversified financial services provider offering an
integrated range of products and services across retail and business
banking (RBB), credit cards, corporate and investment banking, wealth
and investment management and insurance (WIMI). We serve nearly
12 million customers across Africa and have a long-standing presence
in 12 countries, including in our largest market South Africa.
Africa Banking is a combination of the results of Barclays Africa Group
Limited (BAGL), and Barclays Egypt and Barclays Zimbabwe.
BAGL strategy
BAGL’s strategy is underpinned by four clear themes. First, as an African
bank, we invest in growth opportunities on the continent and provide
access to the African and global capital markets. Second, as a customer-
focused organisation, we aim to ensure customer experience remains
our primary focus to make customers’ lives easier and help them
prosper. Third, we are simplifying our business to reduce costs and
improve efficiency. Finally, we continue to make significant investments
in technology and automation.
Our Retail and Business Bank strategy is to transform our leading retail
franchise in South Africa, and in our other African markets. We made
strong progress on new customer acquisition, improved customer
experience, and are investing heavily in mobile and other technologies.
In our Business bank, we are improving channel efficiency to serve small
businesses and medium corporates. In our Corporate and Investment
bank, we completed the roll out of a best-in-class integrated product
platform for corporates in all our markets, and are repositioning our
Markets business. In our Wealth, Investment Management and
Insurance business, we expanded into East Africa, improved
performance in our short-term insurance business, and transformed our
Wealth and Investment Management business to an advisory-led model.
Environment in which the business operates
Against the backdrop of a slowing global economy, Africa economies
are experiencing lower growth rates in part driven by lower commodity
prices. In South Africa, our largest market, persistent power shortages
and drought have had a significant economic impact. In many African
countries, the challenges of job creation and access to quality affordable
education, and the need for a more equitable society free of race and
gender discrimination, have become more critical. As a major financial
services group in Africa, we aim to have positive economic impact and
invest in our communities, while delivering sustainable shareholder
returns.
The industry in which we operate is highly competitive and dynamic.
Mobile and other technologies enable new market entrants and disrupt
traditional models, while at the same time the complexity in the
operations and technology environments has increased. BAGL continues
to make sizeable investments in innovation, data and automation to
improve customer experience and increase efficiency. Mobile technology
in particular is transforming our distribution channels in line with
industry and competitor trends.
Review of the year
Africa Banking 2015 performance was solid and we made further
progress on the financial commitments that we set out to the market.
Our Cost-to-Income ratio was lower than 2014 as income growth
Africa Banking
“In the third year since the formation of
Barclays Africa Group Limited, our strategy
execution is on track. We are well positioned to
address the Africa growth opportunity, make a
positive economic contribution
to our communities, and
deliver sustainable returns
for our shareholders.”
Maria Ramos
Chief Executive,
Africa Banking
Africa Banking
Contribution to the Group 2015 2014
Income (£m) 3,574 3,664
Profit before tax (£m) 979 984
Adjusted RoE (%) 11.7% 12.9%
Risk Weighted Assets (£bn) 33.9 38.5
BUSINESS SEGMENT PERFORMANCE
Delivering Shared Growth:
ReadytoWork Initiative
In October 2015, we launched ReadytoWork, a pan-Africa
employability initiative aimed at empowering young people with the
skills they need to successfully transition from basic education into
the world of work. ReadytoWork aims at addressing youth
unemployment by providing work readiness skills through a free
interactive e-learning platform. We rolled out ReadytoWork in
Zambia, Seychelles, Botswana, Kenya, Mauritius, Zimbabwe and
South Africa, in partnership with several institutions of higher
learning.
Over 4,500 users have independently registered on the portal, with
an additional 64,000 learners across 325 secondary schools in South
Africa accessing the curriculum through our partnership with the
Gauteng Department of Basic Education.
Risk review Financial review Financial statements Shareholder information