Barclays 2015 Annual Report Download - page 24

22 I Barclays PLC Annual Report 2015 home.barclays/annualreport
The activity in our business units reflects our progress
in becoming the partner of choice… continued
exceeded sub-inflationary cost growth. Africa Banking RoE of 8.7% and
RoTE of 11.7% was lower than 2014, although underlying returns in
BAGL increased further. Contribution from the markets outside of South
Africa increased, and is now above 20% as these markets grew faster
than South Africa. We are currently top 3 by income in four of our largest
five markets.
On a reported basis, profit before tax decreased 1% to £979m and total
income net of insurance claims decreased 2% to £3,574m. The ZAR
depreciated against GBP by 10% based on average rates and by 28%
based on the closing exchange rate in 2015 and was again a significant
contributor to the movement in the reported results of Africa Banking.
The discussion of business performance that follows is based on results
on a constant currency basis unless otherwise stated.
Profit before tax increased 11% reflecting growth in rest of Africa
operations of 18% and growth in South Africa of 9%. Good growth was
achieved in the identified strategic areas of RBB and Corporate Bank in
South Africa, and WIMI, while the corporate business outside South
Africa was negatively impacted by higher impairments. Investment Bank
trading performance in South Africa was lower as Fixed Income,
Currencies and Commodities (FICC) income was impacted by a volatile
environment.
Total operating expenses for Africa Banking increased 5% with
inflationary pressure, partially offset by savings from strategic cost
programmes including restructure of the branch network, increased
automation, and property rationalisation.
Loans and advances to customers increased 8% to £29.9bn (reported)
driven by strong Corporate and Investment Bank growth, resulting in
increased net interest income for African Banking. Customer deposits
increased 11% to £30.6bn (reported) reflecting RBB growth.
Investment Bank
“From our unique position with dual home
markets and global reach, we continue to
transform the Investment Bank so that we
can help our target clients achieve their
ambitions.”
Tom King
Chief Executive,
Investment Bank
Long-standing relationships with our clients
Barclays has had a long-standing relationship with Dell, having
advised the Company on a number of capital markets transactions as
well as its acquisition of Wyse Technology in 2012. When Dell,
together with its owners, Michael Dell, MSD Partners and Silver Lake
Partners agreed to acquire EMC Corporation in 2015 for $67 billion,
Barclays acted as a financial adviser to Dell and provided financing for
the transaction.
This landmark transaction, which represents the largest technology
M&A transaction to date, will create the world’s largest privately-
controlled technology company with an integrated portfolio
positioned to address customers’ rapidly changing critical IT needs.
Barclays is committed to delivering innovative financial solutions to
empower our clients to seize opportunities for growth and tackle the
big challenges of the future.
Investment Bank
Contribution to the Group 2015 2014
Income (£m) 7,572 7,588
Profit before tax (£m) 1,611 1,377
Adjusted RoE (%) 5.6% 2.7%
Risk Weighted Assets (£bn) 108.3 122.4
BUSINESS SEGMENT PERFORMANCE