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Chairman's letter

A solid foundation for the future

I am pleased to report that Barclays is in a very different place than it has been since the global financial crisis, and with the significant restructuring done, we can now for the first time in the recent past look forward to enhancing shareholder returns and distributions.

Full Chairman's statement (PDF 135KB)

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John McFarlane, Group Chairman

Dividend per share:
6.5p
(2017: 3.0p)

Earnings per share*:
21.9p
(2017: 16.2p**)

CET1:
13.2%
(2017: 13.3%)

*Excluding litigation and conduct of £2.2bn (2017: £1.2bn) principally related to a £1.4bn settlement with the US Department of Justice (DoJ) with regard to Residential Mortgage Backed Securities (RMBS) and charges of £0.4bn (2017: £0.7bn) due to Payment Protection Insurance (PPI) in Q118.
**Excluding litigation and conduct, DTA re-measurement and the loss on the sale of 33.7% of BAGL’s issued share capital and the impairment of Barclays’ holding in BAGL

  • CEO

    We are delivering on our strategy

    The fundamental strength of our Group rests on a diversified, though connected, portfolio of businesses – and Barclays is well diversified by geography, by product, and by currency between our consumer and wholesale businesses. 

    Full Group CEO review (PDF 202KB)

    Jes Staley

    Jes Staley, Group CEO

    Income:
    £21.1bn
    (2017: £21.1bn)

    PBT*:
    £5.7bn
    (2017: £4.7bn)

    RoTE*:
    8.5%
    (2017: 5.6%**)

    *Excluding litigation and conduct of £2.2bn (2017: £1.2bn) principally related to a £1.4bn settlement with the US Department of Justice (DoJ) with regard to Residential Mortgage Backed Securities (RMBS) and charges of £0.4bn (2017: £0.7bn) due to Payment Protection Insurance (PPI) in Q118.
    **Excluding litigation and conduct, DTA re-measurement and the loss on the sale of 33.7% of BAGL’s issued share capital and the impairment of Barclays’ holding in BAGL

  • Barclays UK

    Leaders in innovation

    With 24 million customers and clients and 25,000 colleagues, Barclays UK’s strategy is about building long-term, meaningful relationships with our customers. This is achieved through colleagues, empowered by technology, passionate about the customer, delivering perfect and personalised experiences to help customers move forward with confidence every day.

    Full Barclays UK CEO review (PDF 241KB)

    Ashok Vashwani

    Ashok Vaswani, CEO, Barclays UK

    Income:
    £7.4bn
    (2017: £7.4bn)

    PBT*:
    £2.4bn
    (2017: £2.5bn)

    RoTE*:
    16.7%
    (2017: 17.8%)

    *Excluding litigation and conduct of £2.2bn (2017: £1.2bn) principally related to a £1.4bn settlement with the US Department of Justice (DoJ) with regard to Residential Mortgage Backed Securities (RMBS) and charges of £0.4bn (2017: £0.7bn) due to Payment Protection Insurance (PPI) in Q118.

  • Barclays International

    Strengthening our diversified portfolio

    In 2018, Barclays International made good progress on executing our strategy and improving returns. Our progress gives us confidence that by continuing to build our businesses through targeted deployment of financial resources and investments in talent and technology, we can accelerate our growth and achieve increased returns.

    Full Barclays International CEO review (PDF 195KB)

    Tim Throsby

    Tim Throsby, CEO, Barclays International and CEO, Barclays Bank PLC

    Income:
    £14.0bn
    (2017: £14.4bn)

    PBT*:
    £3.9bn
    (2017: £3.5bn)

    RoTE*:
    8.7%
    (2017: 4.4%)

    *Excluding litigation and conduct of £2.2bn (2017: £1.2bn) principally related to a £1.4bn settlement with the US Department of Justice (DoJ) with regard to Residential Mortgage Backed Securities (RMBS) and charges of £0.4bn (2017: £0.7bn) due to Payment Protection Insurance (PPI) in Q118.

  • Barclays Execution Services

    World-class service provider

    2018 is the second year of operations for BX and we have gone from strength to strength. Through our centres of excellence we are delivering capacity to support investment in our businesses and drive exceptional customer service.

    Full Barclays Execution Services CEO review (PDF 169KB)

    Paul Compton

    Paul Compton, Barclays Execution Services CEO

    To our customers and clients - delivering high quality services and an outstanding experience

    To society - safety and continuity of services to the financial system

    To shareholders - generating efficiencies by transforming the way we do business

Our purpose, values and strategy

We are a company of opportunity makers

Our common Purpose is ‘Creating opportunities to rise’. Because when our customers, clients, colleagues and society rise, Barclays rises too. We measure and reward our people, not just on commercial results, but on how they live our Values and bring them to life every day.

Barclays Purpose, Values and Group Strategy
  • Our Purpose Our Purpose

    Creating opportunities to rise. We are a company of opportunity makers, working together to help people rise – customers, clients, colleagues and society.

  • Our Values Our Values

    Our values underpin our business and govern everything we do:

    • Respect. We respect and value those we work with and the contribution they make.
    • Integrity. We act fairly, ethically and openly in all we do.
    • Service. We put our customers and clients at the centre of what we do.
    • Excellence. We use our energy, skills and resources to deliver the best sustainable results.
    • Stewardship. We’re passionate about leaving things better than we found them.
  • Our Group strategy Our Group strategy

    To build on our strength as a transatlantic consumer and wholesale bank, anchored in our two home markets of the UK and US, with global reach.

  • Measuring success Measuring success

    Our performance measurement 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

Our business model and stakeholders engagement

Working together to help people rise

Our business model enables us to leverage resource and relationships to produce long-term sustainable outputs for our stakeholders. These outputs provide combined value for our stakeholders, helping people to rise.

Business model
  • Resources and relationships Resources and relationships

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

    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 multinational 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
    • Funding for purchases and growth
    • Management of business and financial risks
    • Financial and business support
    • Innovative digital and technology capabilities.
  • Outputs Outputs

    Financial

    • Group Return on Tangible Equity (RoTE) of greater than 9% in 2019 and greater than 10% in 2020, excluding litigation and conduct, and based on a CET1 ratio of c.13%.
    • CET1 ratio of c.13%.
    • Group costs, excluding litigation and conduct, of £13.6–13.9bn in 2019, and a target cost: income ratio below 60% over time.

    Non-financial

    • Building trust with our customers and clients.
    • Successfully innovating and developing products.
    • Providing accessible products and services.
    • Fostering a diverse and inclusive workforce.
    • Motivating engaged and enabled colleagues.
    • Enabling a positive conduct and a values-based environment.
    • Making decisions and doing business that provides our stakeholders with access to a prosperous future.
    • Proactively manage the environmental and societal impacts of our business.
  • Value created Value created

    Company

    • We support our stakeholders via a commercially successful business that generates long-term sustainable returns.
    • We work together with regulators to help reduce risk in the industry and provide a more sustainable banking landscape over the long term.

    Customers and clients

    • We offer superior service through a broad range of products to enable customers and clients to achieve their goals, and engaging with customers and clients in the way the want to engage with us.
    • We develop strong relationships with customers and clients built on trust.

    Colleagues

    • We help our people have challenging and fulfilling careers in a values-driven organisation.
    • We help our colleagues develop themselves and empower them to work in a way that suits their lives and supports our business.

    Citizenship

    • We deliver financing solutions in social and environmental sectors, and enable access to financial and digital empowerment for individuals and companies.
    • We help provide employment and growth in the economies in which we operate.
    • We engage with governments and society to address societal issues and needs.

Key performance indicators

Measuring performance

Our performance measurement framework undertakes a holistic assessment and sets out our progress towards the strategic goals of the organisation. Our framework is focused on achieving positive and sustainable outcomes for our diverse group of stakeholders.

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 and sustainable future
  • Proactively managing the environmental and societal impacts of our business

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