Barclays 2015 Annual Report Download - page 9

home.barclays/annualreport Barclays PLC Annual Report 2015 I 07
Regulation continues to direct attention towards capital, liquidity and
funding, in order to create a safer banking environment. In 2015, the
Financial Policy Committee of the Bank of England clarified the overall
capital framework for banks. This has provided greater certainty and
allowed us to progress our strategy. Reforms requiring banks to separate
certain activities, such as structural reform in the UK and US, continue to
be a big focus and have been accounted for in the structure of our
revised strategy, as described on page 4.
Conduct issues have hurt Barclays, causing loss of trust among
stakeholders. We continue to embed cultural change and improve
governance to work to rebuild customer and client trust and market
confidence.
Digitalisation trends continue to grow and the power of technology has
raised customer and client expectations, resulted in new competitors in
the digital space, and increased the challenge of defeating cybercriminals.
It has also reduced the cost-to-serve through automation, process
improvement and innovation, while making customer experiences faster,
more personalised and lower risk.
Without active risk management to address these external factors, our
long-term goals could be adversely impacted. Our approach to risk
management is outlined on page 127, and material existing and emerging
risks to the Group’s future performance are outlined on page 119.
Our strategy continues to evolve to respond effectively to the external
environment. Please refer to page 4 for an update on our strategy.
that want to join Barclays because they want to be part of a great
profession. The profession of banking.
I look forward to meeting investors at our AGM, and in the course of the
next year, and thank you for your support as we continue the work of
restoring Barclays to where it should be.
James E. Staley
Group Chief Executive
Barclays is a transatlantic Consumer,
Corporate and Investment bank, governed
by global and local regulatory standards.
Global economic growth has been modest in recent years, and
unprecedented monetary policies, such as Quantitative Easing and near
zero and negative interest rates, have been implemented by many
Central Banks to stimulate growth. During the second half of 2015 and
into 2016, the macroeconomic environment has deteriorated, driven by
commodities weakness, particularly oil prices, along with economic
uncertainty in China. In the UK, the referendum on EU membership gives
rise to political uncertainty. We remain alert to these changes and more,
and monitor and manage our risks accordingly.
Economic
environment
Global economic growth
is expected to be modest
for a prolonged period,
making income growth
more challenging.
Regulatory change
The impact of regulatory
change has been a permanent
shift, affecting the sustainability
and profitability of products,
businesses and the structural
formation of banks.
Trust and conduct
We continue to work to put
our legacy issues behind us.
The cost of legacy conduct issues
has negative repercussions but the
changes we are making in response
to them will have a positive
effect in the long term.
Technology and
rising expectations
Technological improvements
enhance the experience of
customers and clients and can
reduce costs. The investment
required can be expensive in the
short term but will generate
long-term rewards.
We continue to be
proactive in adapting
to the external
environment
Our environmental drivers have
become clearer, helping mitigate
risk and focus our strategy
Our approach
…that is best suited to our
business environment…
Risk review Financial review Financial statements Shareholder information