Barclays 2015 Annual Report Download - page 8

06 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Achieving our goals must be realised at the same time as we complete
the critically important cultural transformation of the Group.
More than 300 years ago, Barclays was founded by a group of Quakers.
Those first Barclays bankers earned the trust of English merchants, and
those bankers felt responsible as stewards of that trust. The Bank, early
on, built an exceptional reputation for integrity. Barclays became
renowned for the principled way it did business.
I joined banking back in 1979, because I was excited to be a part of a
respected profession. Being a banker back then was like being a lawyer
or a doctor. The practitioners of the profession of banking were skilled at
understanding the complex topics of capital, credit, savings and investor
returns; and they were highly regarded as they used that knowledge to
help consumers, corporations, investors and governments, to navigate,
with transparency and clarity, the world of finance. It was a profession
because it was moored to a commitment for integrity.
A company that retains the loyalty of its employees solely based on
compensation is a company that gambles with its institutional culture. I
want Barclays to be a bank where our employees choose to work here
because they believe in the institution, and its intrinsically valuable role
in society.
This is a mind-set I want to reinvigorate in everyone at Barclays, from
branch colleagues working on the high street in Manchester, to the M&A
banker in New York.
Banking, at Barclays, will again be a ‘profession’ and it will be up to all of
our employees to promote that goal internally, and to find the people
We are confident that Barclays Corporate & International will continue to
be well capitalised with a balanced funding profile, supporting solid
investment grade credit ratings.
In summary then, the future is bright. Both Barclays UK and Barclays
Corporate & International already generate double digit Returns on
Tangible Equity (RoTE). They are strong financially, and will be as sibling
businesses, and shareholders and debt investors in Barclays will benefit
from the diversified revenue streams they produce.
We are also simplifying our financial targets for the Group going forward
to focus on three key metrics, and will be aiming to achieve these targets
in a reasonable timeframe, in order to deliver shareholder value:
 RoTE: As we reduce the Non-Core drag on Group returns, the Group’s
RoTE will converge towards the Core RoTE, and achieve attractive
returns for shareholders
 CET 1 ratio: We wil run the Group’s CET 1 ratio at 100-150 basis points
above our regulatory minimum level
 Cost:Income ratio: We will reduce the Group’s Cost:Income Ratio to
below 60%
Going forward, we will also return to normalised financial metrics. Barclays
is in the process of emerging from restructuring and our future disclosures
will be based on our business divisions – Barclays UK and Barclays
Corporate & International. They will no longer include things like ‘cost to
achieve’ or ‘Structural Reform Programme charges’. Instead, you will get a
simple and clear statutory presentation of our Group’s performance.
Our approach
…delivered through a simpler
and better structured business…
Our new structure will focus on delivering
what we do best; and where the opportunities
for returns are greatest
Barclays
UK
■ Personal
Banking
■ Barclaycard
UK
■ Business
Banking and
Wealth
Barclays
Corporate &
International
■ Corporate and
Investment Bank
■ Barclaycard
International
■ Payments
and Merchant
Acquiring
Barclays
Africa
■ Barclays
Africa Group
Limited
Non-Core
■ Divestment
of non-strategic
assets and
businesses
Our simplified
business structure
will enable us to deliver
our strategy faster
Barclays PLC