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Chairman's Statement

While a number of challenges remain, the launch of the ringfenced bank expected at the beginning of April this year largely draws a line on large-scale restructuring, and we look forward to a more traditional business pattern, including the return to a more normal dividend pattern.

Full Chairman's statement (PDF 107KB)

John McFarlane

John McFarlane, Group Chairman

Total Assets £1,133bn
2016: £1,213BN

CET1 13.3%
2016: 12.4%

Dividend 3.0p
2016: 3.0p

Business structure

In 2017, Barclays made significant progress reorganising the business to enable a sharper focus on our strengths as a transatlantic consumer and wholesale bank with global reach.

Business structure
Select
  • CEO

    Two years ago, we laid out our plan to build a Barclays that is fit for the future. To recast our business as a transatlantic consumer and wholesale bank, with global reach.

    I am pleased to report that the significant task of restructuring this great institution was completed in 2017.

    Full CEO review (PDF 188KB)

    Jes Staley

    Jes Staley, Group CEO

    Group Profit before tax £3.5bn

    2016: £3.2bn

    Group Operating Expenses* £14.2bn

    2016: £15.0bn

    *excluding litigation and conduct

    Cost:Income Ratio 73%

    2016: 76%

  • Barclays UK

    With 30,000 colleagues and 24 million customers and clients, Barclays UK strives to help people move forward by providing personalised and perfect experiences, delivered by passionate colleagues. In 2017, we have made significant progress in establishing the ring-fenced bank, protecting our customers and clients and transforming our business through digitisation and automation.

    Barclays UK performance (PDF 991KB)

    Ashok Vaswani

    Ashok Vaswani, CEO, Barclays UK

    Income
    £7.4bn

    Profit before tax
    £1.7bn

    Return on Tangible Equity
    9.8%

    Cost:Income ratio
    66%

    Risk Weighted Assets
    £70.9bn

  • Barclays International

    Barclays International is the diversified transatlantic, wholesale and consumer bank within Barclays Bank PLC. Encompassing the Corporate and Investment Bank, Barclaycard International and Private Bank & Overseas Services businesses, our dual home markets in the UK and US anchor our business in the two most important global financial centres.

    Barclays International performance (PDF 1.3MB)

    Tim Throsby

    Tim Throsby, President, Barclays International and Chief Executive Officer, Corporate and Investment Bank

    Income £14.4bn

    Profit before tax £3.3bn

    Return on Tangible Equity 3.4%
    (6.6% excluding the impact of the US deferred tax assets re-measurement)

    Cost:Income ratio 69%

    Risk Weighted Assets £210.3bn

  • Head Office & Group Service Company

    The Head Office function contains the central operations of the Group. The reintegration of remaining legacy assets and businesses in the second half of 2017, the function became a more material contributor to the Group results. Going forward, many of the Head Office functions will be within the Group Service Company.

Our business model

Barclays PLC Group operates via two clearly defined divisions – Barclays UK and Barclays International – with a diversified business model that we believe helps enhance our resilience to changes in the external environment.

Our business model is aligned with our strategy of being a leading, diversified transatlantic bank with global reach.

Barclays business model
  • Our resources

    We draw on the following to support our activities and deliver value to our stakeholders:

    • The strength and reputation of our brand – serving customers and clients for over 325 years
    • A strong, well-funded and diversified balance sheet
    • Customer and client relationships built on trust
    • A solid track record of successfully innovating for customers and clients
    • Our geographic focus: firmly anchored in the two financial centres of London and New York, with global reach
    • The skills and expertise of our people and our shared values which inform the way we work and how we act

    The skills and trust in our staff helps us, through a range of initiatives, increase financial literacy. 

  • Our services

    We aim to provide superior services to help customers and clients create, grow and protect wealth in a sustainable way.

    Barclays’ customers and clients include: individuals, small and medium-sized businesses, large corporates and multi-national companies, financial institutions and banks, institutional investors, funds, sovereign institutions and governments.

    We offer:

    • A safe place to save, invest and manage cash and payments
    • Innovative digital and technological capabilities
    • Funding for purchases and growth
    • Management of business and financial risks
    • Financial and business support

    Our business services are tailored to help support SMEs and entrepreneurs, creating wealth.

  • Sustainable returns

    We support our stakeholders via a commercially successful business that generates long-term sustainable returns

    • Our services generate revenue via net interest income and non-interest income, including fees and commissions as well as trading and investment income through our wholesale activities
    • We are a large financial institution and provide diversification by business line, geography and customer
    • We aim to capture the benefits of diversification through efficient delivery of cross-group synergies

    Meeting the demands of our customers around sustainable investment drives sustainable value.

  • Delivering value

    We aim to deliver a broad spectrum of value through the way we do business, including

    • Superior service to enable customers and clients to achieve their ambitions
    • Challenging and fulfilling careers for our people in a values-driven organisation
    • Long-term sustainable returns for our investors
    • We work together with regulators to help reduce risk in the industry and provide a more sustainable banking landscape over the long term
    • Employment and growth in the economies in which we operate
    • Engagement with governments and society in general to address societal issues and needs

    Innovation through our products and services is helping increase access to finance and generating dividends and returns.

Our strategy

As a leading, diversified, transatlantic bank with global reach, our goal is to support our stakeholders via a commercially successful business that generates long-term sustainable returns. We reflect our strategy in a number of financial and non-financial measures.

Performance indicators

Our approach reflects the way in which management monitors the performance of the Group, allows for a holistic assessment and sets out our progress towards the strategic goals of the organisation.

By incorporating a broad range of financial and non-financial measures, our framework is focused on achieving positive and sustainable outcomes for our diverse group of stakeholders, and influences incentive outcomes for Barclays’ employees.

 

Financial performance metrics

Group RoTE* >9% in 2019 >10% in 2020

*excluding litigation and conduct, and based on a CET1 ratio of c.13%

CET1 ratio 150-200 bps above the end point regulatory minimum level

Group costs £13.6-13.9bn in 2019**: Targeting cost: income ratio below 60%

**excluding litigation and conduct



Strategic non-financial performance measures – delivering positive outcomes for our stakeholders

Customer and Client

  • Building trust with our customers and clients, such that they are happy to recommend us to others
  • Successfully innovating and developing products and services that meet their needs
  • Offering suitable products and services in an accessible way, ensuring excellent customer and client experience

Colleague

Promoting and maintaining

  • A diverse and inclusive workforce in which colleagues of all backgrounds are treated equally and have the opportunity to be successful and achieve their potential
  • Engaged and enabled colleagues
  • A positive conduct and values-based environment

Citizenship

  • Making decisions and doing business that provides our clients, customers, shareholders, colleagues and the communities which we serve with access to a prosperous future, through our Shared Growth Ambition
  • Proactively managing the environmental and societal impacts of our business

Underpinned by how we behave towards all our stakeholders through our conduct and culture