Barclays





In Section 1:


Introduction Chairman's Statement Group Chief Executive's Statement Financial Performance Group Finance Director The Leadership Team
	Central to our performance during 2002 was a balance between maximising short term results and maintaining momentum in the execution of our strategic agenda. We introduced our five medium term strategic priorities last year: the protection and enhancement of our core UK franchise; the development of businesses that serve global customers and can harvest global or regional economies of scale – the best examples of which are our investment banking and credit card businesses; the deepening of our retail and corporate banking activities in Western Europe; the extension in the UK and Europe of our wealth management business; and enhancing our organisational fitness in the capabilities we will need to be one of the world's leading financial institutions. 2002 has been a year of sound progress towards meeting our ambitions. I will start my review with our core UK businesses, which contributed a 13% increase in profit before tax relative to 2001 and achieved a 4% margin between income growth and cost growth. I will review three areas specifically: Personal Financial Services; Business Banking; and Barclaycard. First, Personal Financial Services. The transformation here continues at pace. It is two years since we completed the acquisition of Woolwich and it was fully integrated into Personal Financial Services during 2002, ahead of schedule. Woolwich continued to make an important contribution to the performance of Personal Financial Services, particularly in helping to broaden and deepen our product range. Our market share of net mortgage flow improved from a combined base of some 6.3% in October 2000 (when the transaction completed) to 8.7% in 2002. We launched the Openplan proposition (which was successfully developed by Woolwich) through Barclays channels in April 2002. Openplan brings convenience and cost savings to our customers – and therefore the potential for both higher product penetration and contribution per customer. Early performance is encouraging: in Openplan from Barclays we generated new savings and mortgage balances of Ł13.2 billion; and products per customer are running at 4.3 relative to 2.5 outside Openplan. Openplan has also been a material contributor to our improved performance in the savings market where, for the first time, Barclays branded savings were one of the top performers in terms of share of new savings flow during 2002. In the increasingly competitive current account market we have increased the number of current account holders we serve from 10.1 million in 2001 to 10.5 million in 2002. So as I look at our performance in Personal Financial Services we have made strong headway across mortgages, Openplan, savings, and current accounts. 1Operating profit excludes the impact of the restructuring charge relating to staff displacement and related costs, costs directly associated with the integration of Woolwich plc, Woolwich fair value adjustments and goodwill amortisation.	Click to go to each page