2006 2005 % change
Financial Total income net of insurance claims £21,595m £17,333m 25%
Proﬁt before tax £7,136m £5,280m 35%
Tax £1,941m £1,439m 35%
Earnings per share 71.9p 54.4p 32%
Dividend per share 31p 26.6p 17%
Tier 1 capital ratio 7.7% 7.0% –
Total shareholder return 25% 21% –
Customers Total customers 27m 25m 8%
Number of branches outside the UK (including Absa) 1,613 1,516 6%
Total UK current accounts 11.5m 11.1m 4%
Barclaycard: International cards in issue 6.4m 4.3m 49%
Employees Full-time equivalent (FTE) 122,600 113,300 8%
Total employee remuneration £8,169m £6,318m 29%
Employee opinion survey: Response rate 87% 84% –
Employee opinion survey: Employee engagement 76% 72% –
Environment UK CO2 emissions 222,773 tn 210,178 tn 6%
UK carbon intensity (tonnes CO2/£m income) 16.2 16.8 (4%)
UK energy consumption (ofﬁces) 472 GWh 497 GWh (5%)
UK energy consumption (ofﬁces) per person 7,544 kWh/FTE 7,925 kWh/FTE (5%)
Water use per person 11.9m3/FTE 12.3m3/FTE (3%)
Environmental Management System coverage:
• UK 100% 95% –
• Africa, Americas and Asia Paciﬁc 94% 25%(a) –
Community Total investment £46.5m £39.1m 19%
Volunteers: time committed 75,586 hrs 77,413 hrs (2%)
Employee participation: community programmes 33,000 people 27,000 people 22%
(a) 2005 ﬁgures do not include Absa.
Member of the Member of the BITC Corporate PerCent Club Carbon Disclosure
2006 Dow Jones 2006 FTSE4Good Responsibility Project
Sustainability Index Index Index Ranked in the top
3rd position 50 of the global
FT 500 companies
Introduction Responsible banking Inside Barclays Measuring performance
1 Group Chief Executive’s 8 Our customers 37 Our people 57 Data tables
introduction 13 Responsible lending 42 Managing our IBC External assurance
2 Barclays around the world 16 Financial inclusion environmental impact statement
4 Corporate Responsibility 22 Financing commercial 46 Barclays in the community BC Contact details
Director’s statement customers 52 Our governance framework
6 Summary of our 26 Growing internationally 54 Creating value for
commitments 31 Facing climate change stakeholders
34 Working with our suppliers 55 Engaging our stakeholders
Group Chief Executive’s introduction
John Varley Group Chief Executive
In the year since we issued our last report, key stakeholders and have improved our
there has been a further marked increase in performance in a number of ethical indices.
the importance attached to Corporate In support of our commitment to raise the
Responsibility (CR). Over the course of the proﬁle of CR further, Gary Hoffman, the
last 12 months, CR has become more than
I want us to be leaders, Group Vice Chairman, now represents this
just good business sense – in 2007 no not followers, in corporate agenda at Board level. We made progress
organisation can afford to ignore its scope responsibility. with innovative ﬁnancial inclusion
and its implications for business. programmes in the UK and Africa, while
Absa became the ﬁrst major South African
There are two key developments driving
guidelines. But we need to plan for the years bank to achieve ISO14001 accreditation for
this change. The ﬁrst is the growing, and
ahead so we are undertaking a thorough its environmental management system.
increasingly widespread, understanding
review of our environmental and climate
of the consequences of climate change. Sustainability is an appropriate topic for an
The second development is the evolving organisation that can trace its roots back well
debate around sustainability, and the long- Preserving the environment for future over 300 years. But I am looking to the future
term impact business has on the societies generations reflects the evolution in when I say that we are fully committed to
and economies in which it operates. Neither thinking on sustainability, and the need to action – we must debate, we must learn and
of these issues is particularly new – what is assess the impact of business over decades, then we must act, to ensure the successful
unprecedented, however, is their adoption rather than years. It shifts the emphasis and responsible development of our
and embrace by so many different and from a relatively near-term focus on business in the years ahead.
interested parties. managing social, ethical and environmental
risk, towards a more active form of business
Banks play an important role in influencing
leadership, which identiﬁes and embraces
thinking and behaviour on both these
the commercial opportunities arising from
issues, through their relationships with
this change in thinking. Sustainability is also This is our eighth Corporate Responsibility
customers, clients, employees, suppliers,
very much about playing our part in building Report. It is intended for all those
a more inclusive and just society, by stakeholders who are interested in the
organisations and other stakeholders.
addressing acute challenges such as
This role as influencer is a core tenet of Speeding up making towards our goal
progress we are the mortgage
ﬁnancial exclusion. This has always been an of sustainability.
responsible banking – which embodies
area of strength for Barclays and we remain process
the Barclays approach to CR. I repeat my We aim to set out why corporate
determined to build upon it, both in the UK In 2006 we asked a panel of 100
message from last year’s report: I want us responsibility is an integral part of our
and in our strongly growing business across customers about their experiences of our
to be leaders, not followers, in corporate business strategy and how we are
emerging markets – particularly in Africa. mortgage application process, and as a
responsibility. addressing and prioritising the social,
We make our greatest contribution to result we decided to bring the business
If we look at climate change, it is right environmental and ethical challenges
society by being good at what we do, and back in-house, including the servicing arm
that Barclays should assess – as others and opportunities we face in our business
so ensuring Barclays continued success. of it.
quite properly will – whether we are around the world.
This is at the heart of our ability to help our Even though the volume of business is
doing enough to tackle an issue with Barclays is committed to transparency in
customers and clients achieve their goals growing rapidly at the moment the
such signiﬁcant consequences. We have the reporting of these issues and, to this
through providing competitive products feedback about the new approach is
done much to address our direct end, our report has been produced taking
and services, as well as supporting positive so far, and the average time it
environmental footprint, and have fulﬁlled account of the international AA1000
economic growth and sustaining healthy takes to get from application to offer is
the commitment we set last year to make Standard and in accordance with the
ﬁnancial systems. We must demonstrate down to 10 days from 16, an
our UK operations carbon neutral. In our 2002 GRI sustainable reporting guidelines,
by our actions how it is possible to make improvement of 37%.
direct sphere of influence, we are well under including the Financial Sector Supplements.
a signiﬁcant and lasting difference.
way with environmental as well as social A full GRI analysis is available at
and ethical screening of our supply chain. Last year, we made encouraging progress in www.barclays.com/
In our lending activity, we have signiﬁcantly CR. Under Alastair Camp’s leadership, we corporateresponsibility.
updated our environmental as well as social are developing broader relationships with
Corporate Responsibility Report 2006 1
Barclays around the world
Operating in over 50 countries and
employing 123,000 people, we move,
lend, invest and protect money for
over 27 million customers and clients
the world over.
UK Banking Barclaycard International Retail and
Commercial Banking (IRCB)
Delivers banking solutions to Barclays UK A multi-brand consumer lending business Provides Barclays international personal
retail and business banking customers. which also processes card payments for and corporate customers with banking
It offers a range of integrated products and retailers and merchants and issues credit and services. The products and services offered
services and access to the expertise of other charge cards to corporate customers and to customers are tailored to meet the
Group businesses. Customers are served the UK Government. It is one of Europe’s regulatory and commercial environments
through a variety of channels comprising the leading credit card businesses and has an within each country.
branch network, automated teller machines, increasing presence in the United States.
telephone banking, online banking and
relationship managers. UK Banking is
managed through two business areas,
UK Retail Banking and UK Business Banking,
the latter providing relationship banking to
medium-sized and larger business customers.
www.barclays.co.uk/business www.barclaycard.com www.barclays.com
2 Barclays PLC
Corporate Responsibility Report 2006
UK Banking and
all other businesses
Isle of Man
UK Banking Barclays Capital
Jersey/Guernsey Germany Japan
Barclays Wealth Barclaycard Barclays Capital
France Switzerland Barclays Capital BGI
IRCB Barclays Capital BGI South Korea
Barclays Capital BGI
Luxembourg Barclays Capital
Spain Italy Taiwan
Barclaycard Monaco Barclaycard Barclays Capital
Barclays Capital Barclaycard Barclays Wealth Barclays Capital
Cyprus Hong Kong
Barclays Wealth IRCB Barclays Wealth
Barclays Capital Malta Barclays Barclays Capital
Gibraltar Barclays Wealth Barclays Wealth
Barclays Wealth Thailand
United Arab Emirates
Egypt Barclays Capital
Barclays Capital IRCB
Uganda Barclays Wealth Barclays Capital
Kenya Barclays Capital
Barclays Wealth Tanzania Seychelles
Barclays Wealth IRCB
IRCB Barclays Capital
Zambia BGI Indonesia
Barclaycard Barclays Wealth
Mauritius Barclays Capital
South Africa Zimbabwe Barclays Capital
Barclaycard IRCB BGI
Barclays Capital Barclays Global Investors (BGI) Barclays Wealth
A leading global investment bank which One of the world’s largest asset managers Serves affluent, high net worth and
provides large corporate, institutional and and a leading global provider of investment intermediary clients worldwide, providing
government clients with solutions to their management products and services. private banking, asset management,
ﬁnancing and risk management needs. BGI offers structured investment strategies stockbroking, offshore banking, wealth
Barclays Capital services a wide variety of such as indexing, global asset allocation structuring and ﬁnancial planning services.
client needs, from capital raising and and risk controlled active products Barclays Wealth works closely with all other
managing foreign exchange, interest rate, including hedge funds and provides related parts of the Group to leverage synergies
equity and commodity risks, through to investment services such as securities from client relationships and product
providing technical advice and expertise. lending, cash management and portfolio capabilities.
www.barclayscapital.com www.barclaysglobal.com www.barclayswealth.com
Corporate Responsibility Report 2006 3
Corporate Responsibility Director’s statement
Setting the right priorities
Alastair Camp Corporate Responsibility Director
During the year we engaged actively Operating a responsible business
with our many stakeholders. In this report,
we discuss the subjects they consider most
important, and how we use our dialogue Why we are in business:
to inform our responsible banking agenda • Helping customers
Our achieve their
and to set the right priorities. We talk about Business financial goals.
how we are responding to feedback, and Purpose • Total Shareholder Return.
speciﬁcally to the annual consultation on
our last Corporate Responsibility Report Our strategy
and the opinions provided by our
external assurer. Stakeholder Risk mitigation
Economic and commercial
We took the deliberate decision to opportunity
raise our proﬁle in this area over the
past year, undertaking a much broader
programme of consultation with
stakeholders, particularly investors and
NGOs. We have spoken more often, and Our Foundation Stones Our values
more publicly, on corporate responsibility
Code of Statement
questions, because these events give us Guiding
the opportunity to exchange views openly, Rights
and we have found that this has created
a virtuous circle of further dialogue and
action. Climate change, ﬁnancial inclusion
in the UK and Africa, and the incorporation
of social and environmental concerns into
lending guidelines, are all good examples The judgements we make in our The issues reflect both ‘direct impacts’
of areas where we have beneﬁted from prioritisation take into account: (which derive from our own business
external input. activity) and ‘indirect impacts’ (which are
• Our overall business goals.
the result of actions taken by our customers
• An assessment of the strength and
How we prioritise our issues or suppliers).
breadth of stakeholder views.
The idea of sustainability is an integral part
• How we can build employee and Looking ahead, our main challenges for
of our commercial strategy, as well as the
customer trust, and the reputation and 2007 are to:
way we do business. As a global business,
value of our brand.
we are concerned with a wide number of • Ensure that our strategy remains
• How social and environmental insights
social, ethical and environmental issues. responsive to the fast-developing issue
can assist the development of our
We have well-established procedures to of climate change.
business around the world, and open
ensure that we assign the right priority to • Develop our ﬁnancial inclusion and
up new commercial opportunities
each of them, which take account of our Microbanking programmes further,
(for example, through the opportunity to
own business strategy alongside a careful especially in the developing world.
develop innovative customer products
assessment of their importance to our
and services). These priorities are reflected in our progress
• How we can best mitigate our report and new commitments for the
operational and reputational risks. forthcoming year.
The structure of this report highlights the
main topics on our corporate responsibility
agenda, and shows how these relate to our
business strategy, and to our business units.
4 Barclays PLC
Corporate Responsibility Report 2006
Linking CR issues to our business strategy
We think it is important to link the CR issues covered in this report with our business
Acting on feedback
strategy and show the main business units to which the issues relate. After the publication of our last Corporate
Barclays business strategy has four core priorities: Responsibility Report we undertook
extensive consultation with investors,
A Building the best bank in the UK. consumer groups, global and national
B Accelerating the growth in our global businesses (investment banking, institutional NGOs, governments, media and corporate
asset management, wealth management and international cards). responsibility specialists. Their views were
C Developing retail and commercial banking in selected countries outside the UK. many and varied, but there were some
D Enhancing our operational excellence.
The table below shows these links in more detail.
Report section – Key CR issues covered Link to Barclays Principal business units to
business strategy which issue relates • Our ‘responsible banking’ theme was
well received as a good way to integrate
Responsible banking corporate responsibility with business
Our customers strategy.
Treating customers fairly, customer A, B, C, D All businesses • People liked the issues-based approach
satisfaction, secure delivery channels, and context: 88% of respondents
anti-money laundering agreed that the issues we chose should
indeed be our major concerns.
Responsible lending • 75% of previous respondents felt
Levels of consumer indebtedness A, D UK Retail Banking, Barclaycard that we had acted on the feedback
Financial inclusion they had given.
Improving access, affordable credit A, C UK Retail Banking, Barclaycard, • The sections on ﬁnancial inclusion,
and savings for excluded groups; International Retail and Africa, community investment and
environmental management were seen
developing ﬁnancial capability Commercial Banking (IRCB)
as particularly strong.
Financing commercial customers
Sustainable lending: environmental A, B, C Barclays Capital, Negative comments – and how we
and social impacts UK Business Banking, IRCB have responded
• People felt that there was a need for
more detail in the consumer lending
Supporting development C IRCB
section. We have included more
and inclusion; HIV/AIDS
background on this issue this time.
Facing climate change • We were asked for more detail on how
Managing our carbon emissions; A, B, C, D All businesses we prioritise our corporate responsibility
developing climate related products issues. We cover that in this report,
together with a statement of how we
Working with our suppliers create value for all our stakeholders.
Supplier management D All businesses • People wanted us to ensure that wider
issues that are important to other
stakeholders are also included. We have
Inside Barclays aimed to give a broader context in this
Our people report, as well as including candid
Our values, talent and A, B, C, D All businesses views from other organisations
development, diversity involved in these ﬁelds – even if we do
not always agree with them – and say
Managing our environmental impact where we disagree.
Managing our physical resources, D All businesses • More detail was requested on how
reducing our footprint corporate responsibility is integrated
Barclays in the community into the business. A more detailed
Global community A, B, C All businesses section on governance is included
investment strategy this time.
The Barclays Annual Report 2006 provides more detail on strategic and ﬁnancial
progress and can be found at www.investorrelations.barclays.com.
Corporate Responsibility Report 2006 5
Summary of our commitments
Goals in 2006 Progress Commitments for 2007
Our customers • Develop new electronic payments • New faster payments service is on • Maintain momentum on customer
27 million customers service, ready for launch by end 2007. track for November 2007 launch. service and satisfaction.
and clients worldwide • Continue to improve customer • Progress sustained – customer • Complete the Barclays/Woolwich
satisfaction in UK Retail Banking. advocacy up 10% since end 2004. branch and infrastructure
• Continue development of online • Strong focus of attention – • Continue to improve disability
banking security features. continual improvements made. access to products and delivery
Responsible lending • Encourage an increase in the • Most major credit card issuers have • Drive progress on data sharing
Taking a lead role on number of organisations sharing signed-up to ‘Behavioural data initiatives.
data sharing credit information. sharing’ and good progress achieved • Continue data review to ensure we
on current account data sharing. make the best credit decisions for
• Pilot programme to identify and help • Pilot scheme implemented ﬁrst • Develop electronic information
customers who may be approaching half 2006. to help customers make informed
ﬁnancial difﬁculty. decisions.
Financial inclusion • Embed the Ghanaian Microbanking • Programme has reached 80,000 • Reach 500,000 people through
Barclays and Absa have programme; use learning to develop market traders; extended to credit Microbanking in Ghana.
opened almost one million new microﬁnance initiatives. union sector.
basic bank accounts • Review our UK basic banking • Consultation with three consumer • Target Cash Card customer
proposition to ensure it meets the groups has led to product satisfaction score of 89%.
needs of a diverse customer base. enhancements.
• Encourage a strong UK community • We remain the leading private • Play a leading role in driving
ﬁnance sector. sector supporter of credit unions sustainability in the credit union
in the UK. sector to reduce ﬁnancial exclusion.
Financing commercial • Improve understanding of social • Lending sector guidance reviewed • Continue environmental and
customers issues relating to Equator Principles and extended to cover our whole social risk training programme.
Our revised environmental and include in updated sector commercial lending book
and social sector guidance guidance. (over 50 sectors).
has been shared with • Provide training on environmental • Training conducted for over 120 • Collaborate with United Nations
170 institutions risk and the Equator Principles to employees in project ﬁnance, Environment Programme to
colleagues in Absa. investment banking and credit develop our approach to human
teams. rights in risk management.
Growing internationally • Expand branch and cash machine • Customers have access to some • Signiﬁcant growth in branch and
Ten million customers network in South Africa. 6,700 cash machines (up 16%) cash machine network across our
in Africa and 749 branches. African businesses.
• Increase take-up of Mzansi basic • We now have 518,000 Mzansi basic • Grow basic banking services
bank account in South Africa. bank accounts in South Africa. targeting disadvantaged people.
• Further develop HIV/AIDS • Leading HIV education, counselling • Continue progress towards the
awareness and participation in and testing programmes in place achievement of Black Economic
employee welfare programmes. across African businesses. Empowerment targets in
6 Barclays PLC
Corporate Responsibility Report 2006
Goals in 2006 Progress Commitments for 2007
Facing climate change • Make UK operations carbon • UK carbon neutrality achieved. • Work towards becoming globally
Our UK operations neutral. carbon neutral.
are now carbon neutral • Renewable energy purchased for • Source renewable energy for
50% of UK operations. international operations.
100 % • Investigate carbon management
services for SMEs, personal
customers and employees.
• UK carbon neutral debit card
• Develop further environmental
products for personal customers
and launch employee guide on
climate change actions.
Working with our • Review our suppliers using • New corporate responsibility • Continue application of
suppliers enhanced screening tool and build supplier questionnaire launched. questionnaire to medium and
57 medium and high-risk into new supplier contracts. • 57 medium and high-risk suppliers high-risk new and existing
suppliers and reviewed to date (see page 35). suppliers.
of supplier spend reviewed
Our people • Further improvement in key • Good progress: employee • Improve employee opinion scores
123,000 employees in employee opinion survey scores. engagement up from 72% to 76%. to high-performing norm.
over 50 countries • Acquire and develop talent with • Focus on talent sustained – 21% of • Improve satisfaction scores
increased momentum. senior managers are now female. for disabled, gay and lesbian
• Ensure line managers have the • In place. Strong focus on talent • Increase the proportion of women
tools they need to meet the ‘Best recruitment and development. in senior grades.
People’ guiding principle.
Managing • Meet 2006 environmental • Good progress on energy use in • Continue progress towards 2010
environmental impact improvement targets. ofﬁces, water and waste targets – CO2, energy, water and
First position amongst management. waste (see page 58).
banks in the Dow Jones • Implement our Environmental • Absa in South Africa and Barclays • Continue to extend the EMS
Sustainability Index for Management System (EMS) in France achieved ISO14001 internationally.
environmental reporting Italy and South Africa. certiﬁcation. • Establish new programmes to
eliminate sources of waste.
Barclays in the • Launch programmes with Help • Partnerships successfully launched • Increase participation in employee
community the Aged and NCH, the children’s in June 2006. community programmes by 5%.
£46.5 million global charity.
investment • Develop a co-ordinated global • New programme developed and • Drive globalisation of community
in our communities community investment rolling out through 2007. programme, increasing non-UK
programme. funding to 25% of total.
• Increase participation in employee • 33,250 employees participated in • 30% of community investment to
community programmes 2006, an increase of 22%. be focused on ‘Banking on brighter
(volunteering, fundraising futures’ theme (see page 48).
Corporate Responsibility Report 2006 7
Signiﬁcant investments are being made to
ensure that our customer service standards
are consistently achieved.
8 Barclays PLC
Corporate Responsibility Report 2006
Work in progress
Everything we do starts with our customers. That may sound like a truism but
we are in business to help them. Our customers are at the heart of what we do,
although the banking industry as a whole has not always had a strong reputation
for customer service. From a Barclays perspective, we have set ourselves high
standards for customer service right across the Bank. That clear intent is being
backed up by signiﬁcant investments to ensure that our standards are
Fair play Consumer Code. The main areas which
There are certain basic principles that have been updated are access to basic
underpin everything we do in relation to bank accounts, how changes to the interest
our customers: we should be open and rates applicable to savings accounts are
At a time of falling customer managed, and the way credit assessments
transparent, we should ensure that our
products always meet genuine needs, and trends [across the ﬁnance are conducted before loans are made.
we should give people all the information industry], Barclays improved its
they need to make an informed choice. position and is now ﬁrst among Products
Treating customers fairly is not just about
We are embedding these principles into the UK banks in terms of good customer service, it is also about
the way we do business by aligning many customers believing it takes developing the right products, and
of our employees’ pay and performance
targets with the quality of service which
its CR seriously. providing clear and straightforward
information about them. We are working
customers receive. In the past we had a hard to make all of our products simpler
Source: MORI survey, 2006
more traditional approach to sales and and more transparent. An example is the
targets, but now customer satisfaction ‘lifetime tracker’ mortgage, which was
plays a key role. For example, in Barclays
Treating customers fairly Wealth, rather than have a sales incentive Investing in training
Our own principles on fairness reflect the structure, our focus is on providing the right In the UK all our cashiers now go through
Financial Services Authority’s agenda on product for each customer, adapted to their a 16-week induction programme, which
treating customers fairly. This covers own circumstances and attitude to risk. covers detailed training on our systems
subjects such as: Across our retail business we have made as well as modules on customer service.
complaint-handling a particular priority. This is followed up with ongoing
• Product design
We have overhauled many of our assessments back at their branch, which
• Marketing and promotion
procedures, and improved the way we lead eventually to full accreditation.
• Sales and advice processes
investigate the root causes of the most Last year, 1,400 employees successfully
common problems. A ‘Red Flag’ scheme completed the scheme.
• After-sales information
• Complaint handling has also been introduced which means In South Africa, Absa runs a full set of
that customer feedback can be acted upon training programmes, and in 2006 a total
within 24 hours. of ZAR 118 million was invested in the
Barclays continues to support the Banking training of 21,000 employees.
Codes in the UK which provide – via self-
regulation – additional protections to
consumers and to businesses, charities,
clubs and associations. In 2006 we worked
with the British Bankers’ Association to
make further improvements to the
Corporate Responsibility Report 2006 9
developed in response to customer We launched a revised and more
feedback, and has no application fee and Assets under management comprehensive website, covering
no tie-ins. Barclays Global Investors (BGI) is one of disability access to all our branches,
the world's largest managers of exchange products and services. We also made
We are responding to the growing requests
traded funds under the iShares brand, changes to our online banking service
to clear payments more quickly. We have
which are index funds that trade like for visually impaired customers,
been giving immediate value on personal
shares. Each share represents a portfolio including improvements on-screen
cheques up to £1,000 paid into Barclays
of stocks designed to track closely one and new speech reader software (visit
accounts for over eight years, but this is
speciﬁc index. These investment products www.barclays.co.uk/accessibleservices/
an issue that affects the whole banking
trade on a stock exchange and can be branch_banking.html for more
sector, and it will only be fully resolved by
bought through most stockbrokers, information, or call Barclays Information
taking an industry-wide approach. We are
allowing the flexibility to invest in indices Line 0800 400 100).
working with other banks and APACS, the
UK trade association for payments, to focusing on environmental, social and In preparation for the Mental Capacity
develop an electronic payments service governance criteria, such as iShares KLD Act, Barclays is implementing processes
that can transfer cleared funds within two Select Social Index Fund and iShares KLD and training to equip our frontline
hours. This is scheduled for launch in 400 Social Index Fund. employees with the necessary knowledge
November 2007. BGI is also one of the largest asset and skills they need to deliver the right
management companies in the world with services. We applaud the goals of the Act,
We have responded to the very different
over US$1.8 trillion under management; it but believe that it represents a challenge,
circumstances of the African market by
has over 2,800 clients in 52 countries. By particularly with regard to employees being
introducing a different way of assessing
serving institutional asset management required to make judgements on the mental
applications for loans from small- and
clients with actively managed and indexed capacity of customers.
medium-sized businesses. Many of these
customers simply do not have traditional strategies, our investment returns are Our new ofﬁces in Zaragoza, Spain, are
ﬁnancial statements that they can show us, beneﬁting tens of millions of individual being designed with accessibility in mind.
and we now make our decisions based on pension participants worldwide, providing So far 29 of our ofﬁces across Spain have
their bank account and how they have consistent and reliable returns to finance been through the programme which will
managed it. their retirements. be completed in 2007.
In June last year we announced that we
Branches and ATMs
planned to integrate the branch networks
For many customers, our branches are the UK, where some of our branches have
and supporting infrastructure for Barclays
Barclays front door. We are making large needed refurbishment. Likewise many
and the Woolwich. This will mean extra
investments in Spain, Portugal and Italy, branches have been made more accessible
investment in the newly combined branch
where we opened 50 new outlets in 2006, for disabled people. We have spent a total
network, and in the Woolwich name as
taking the number in those countries to of £84 million on this programme, and 95%
our flagship mortgage brand. Under these
some 590. And in Africa, Absa and our of our branch network now has disability
plans Woolwich and Barclays branches
other businesses on the continent are all access. This represents the large majority
within 300 metres of each other will be
focusing on extending their reach, of branches that can have their access
consolidated onto one site. The aim is to
especially into rural areas, where we are improved; whilst our ideal is complete
avoid duplication and improve customer
using creative new ways to offer branch accessibility, issues such as planning
service by using the same IT systems across
services even where we do not have a permission and the physical structure of
the network. Woolwich customers will get
traditional bricks-and-mortar building. some buildings make this impractical.
access to four times as many branches as
There is more detail on this in the chapters
Where we cannot improve accessibility, we before, as well as to Barclays ATMs and
on ﬁnancial inclusion and growing
still provide the same features for disabled some 12,000 Post Ofﬁces where Barclays
customers as are found in our other current account customers can withdraw
In terms of the overall Barclays branch branches, such as hearing induction loops cash free of charge.
network the obvious priority has been and low-level writing surfaces.
Improving our service
Signiﬁcant investment in the principles of
Treating Customers Fairly means better
products, more employee training and an
improved experience for our customers.
10 Barclays PLC
Corporate Responsibility Report 2006
in the short term. However, through further
investment in the network over the next two Speeding up the mortgage
years, we expect our ATM numbers to process
Once complete, these return to pre-integration levels.
improvements will make all of our In 2006 we asked a panel of 100
Customer satisfaction customers about their experiences of our
branches available to all of our mortgage application process. Their input
In last year’s report we talked about the
customers, who will see familiar fact that we needed to improve the levels helped us decide to bring the business
faces serving them in better of customer satisfaction in our UK retail back in-house, including its servicing arm.
looking and better equipped business. Our overall strategic aim for Even though the volume of business is
premises. the UK Retail Bank is to build the best growing rapidly, the feedback about the
bank in the UK, and our aim is to do that new approach is positive, and the average
through sustained focus on excellence time it takes to get from application to
Chief Executive Ofﬁcer, UK Retail Banking in customer service. offer is down by 32%.
A great deal of effort has gone into this in
the last 12 months: we have invested in
modernising our branches, and we have
sharpened up our internal processes.
Our customer satisfaction scores are now Barclays Capital and Barclays Global
We expect no frontline job losses as a result. improving, and the number of customers Investors. Likewise the operations in Africa
However, three back ofﬁces are expected to who would recommend Barclays has also and the Indian Ocean are well ahead of their
close. Our union, Amicus, has been advised gone up by 10% since the end of 2004. competitors, and Absa is ranked joint ﬁrst in
on the plans and employees informed of South Africa.
We have succeeded in reducing queuing
the potential future impact. These ofﬁces
times in our branches this year – the Absa was rated the most caring company
have a combined workforce of 1,200 but,
average is now under three minutes, in the ﬁnancial sector in the South African
through employee turnover and taking
compared with a high of 4.5 minutes Corporate Care Check survey. It was also
steps to redeploy where possible, we are
in 2004. third amongst all South African companies.
working towards ensuring redundancies
are signiﬁcantly fewer than this. Overall, the We have always had a strong reputation Barclays Spain was ranked third in
workforce of UK Retail Banking is expected for customer service in Spain and Portugal, the country for customer service in a
to remain broadly in line with the current in UK Business Banking, Barclays Wealth, recent survey.
number of 32,000. We continue our
commitment to remaining in any town Safer banking
where we are the last bank branch. UK branches reduced queuing time (minutes) The conﬁdentiality and security of our data
As for cash machines, we have the third- and transactions is one of our highest
largest ATM estate in the UK, and our priorities, and we know that customers are
customers also have access to some 34,500 increasingly concerned about this topic.
free LINK cash machines. All of our ATMs Throughout the world we work closely with
are free to use both for our customers and all the relevant authorities to ensure that
our competitors’ customers, as our signage we play our full part in the ﬁght against
at these machines makes clear. And 92% ﬁnancial crime and terrorism.
of our machines are at a height that suits 2004 We know that our customers value the
wheelchair users, a ﬁgure expected to freedom and convenience of online
reach 98% by the end of 2007. As Barclays banking: in Spain, 54% of our customers
and Woolwich fully integrate, there will be now use internet banking, and that
some decrease in the number of our ATMs 0 1 2 3 4 5 number is rising annually by 25%; in South
Free LINK cash machines Percentage of our cash machines that are Post Ofﬁces where our current account
at a height that suits wheelchair users customers can withdraw cash free of
34,500 92 %
Corporate Responsibility Report 2006 11
Africa the growth rate is more like 90%. We guarantee to refund any UK customer
However, the flexibility of internet banking who has innocently suffered internet Dealing with money laundering
can come at a price. There are a number of fraud on their Barclays account. There is Our anti-money laundering policies are
possible security concerns here, including more information about this at designed to make sure that we observe
‘trojan’ viruses and ‘phishing’ (scam email www.barclays.co.uk/security. the highest ethical standards. They cover
attacks). In response to this we are making issues such as training and accreditation
All Barclays cash machines are protected
free anti-virus software available to for our employees, and the use of IT
with ‘anti-skimming’ devices, which ensure
customers in the UK, Spain and South systems to monitor and report on
that customers’ card details cannot be
Africa, and we update our online security anything that appears suspicious. Barclays
stolen by fraudsters. Our ATM cards are
pages on a regular basis. Wealth has reviewed its processes to
protected by Integrated Chip and PIN
We have also introduced a free SMS text technology and over one million customers ensure that they meet the strictest
alert service in the UK and Spain, which are now using Barclaycard Secure, a process requirements of international compliance
sends our online banking customers an which gives them better security when they and control, especially given the volume
alert when they set up a new third-party are shopping online. of cross-border activity undertaken.
payment, to check its authenticity. The next
step will be the introduction of ‘two factor There is more detail about our
authentication’– in other words Chip and customers on the website at
PIN technology combined with a hand-held www.barclays.com/ourcustomers.
card reader. Our goals, progress and commitments
for 2007 can be found on page 6.
12 Barclays PLC
Corporate Responsibility Report 2006
Understanding the issue
With UK consumer debt now standing at a record £1.3 trillion, the subject of
responsible lending has understandably received a good deal of press coverage.
But media reports have not always given an accurate picture of the wider
context. We have dedicated considerable time and resources to dealing with
this issue, but before we talk about what we are doing, here are some basic
facts and figures about consumer lending in the UK.
Lending in context Of the remaining £213 billion, a large As one of the leading credit card companies
For several years now levels of consumer proportion is structured debt, in other words in Europe, Barclaycard clearly has a
debt have been rising, but there are positive lending with a fixed repayment schedule. responsibility to listen to these criticisms
as well as negative aspects to this. Consumer And of the remainder, credit card borrowing and take the lead in doing something
borrowing has not only supported the accounts for £55 billion, and most of that is about them. We talk later in this section
country’s economic prosperity, with growth either being repaid in full every month, or about the specific work we have in hand,
fuelled by retail spending but, in general, being managed without problem. but the main point is that we are committed
more flexible access to credit has also been to both fairness and transparency in lending
Even though credit card borrowing only
good for the individuals concerned. At the and, as the market continues to develop in
accounts for a very small proportion of the
same time, interest rates have been at response to customer demand, we will do
total, the wide choice of products available
historically low levels, and seem likely to more to look at the deeper causes of
and level of marketing means that public
remain relatively low. So while debt has risen excessive borrowing.
attention tends to focus on this particular
considerably, the majority of people are product whenever the issue of consumer Given the increasing complexity and variety
managing that debt without difficulty. debt arises. Critics have said that the terms of lending products available in the market,
It is also important to look behind the and interest rates that apply to cards are not we have put greater focus on ensuring that
headline figures. As the diagram shows, clear enough, and that the industry as a our marketing practices are responsible and
of the total £1.3 trillion that has attracted whole has encouraged people to borrow transparent. It is our responsibility to ensure
so much attention, £1.08 trillion is more – and take out more cards – than they that our products and their terms are clear
secured debt, most of it mortgages. can afford. to customers. Nevertheless there will always
be some individuals who will get into
Total consumer debt in 2006 difficulties with their borrowings, however
strictly the banking sector is regulated – or
Secured lending Total unsecured lending Regardless of how low this figure is, it is
£1.08trn £213bn important to address the issue and at
Barclays there are two fundamental aims:
84% 16% first, to ensure that the number of people
in difficulty, or at risk of becoming so, is as
of which, low as possible and, secondly, to provide
credit card lending, support and guidance to those in difficulty,
£55bn or to those who need our help.
4% Preventative measures
There are two aspects to our work on this.
Within Barclays we are making better
decisions about how much we lend, and
to whom, partly by sharing data with other
Source: Bank of England lenders. And in parallel with this we are
Corporate Responsibility Report 2006 13
encouraging customers to take more to highlight the potential value of having
control and responsibility for their own access to other data sources, such as
finances by developing better products, student loans, council tax payments,
providing better and clearer information, and utility bills.
and supporting financial capability
And following extensive work across the
banking industry, in 2007 we are also in
a position to share positive data, such as
limits and balances on current accounts.
We talked in last year’s report about the
This gives us access to additional
benefits of data sharing for the industry as
information which will help us to make
a whole, and more progress has been made
the best possible credit decisions.
in the last 12 months.
We fully understand the sensitivities
The agreement we pioneered with other
surrounding the disclosure of personal data
lenders to share behavioural data is now
and we want to be sure that it is secure and
supported by the majority of the other big
only used in responsible and appropriate
credit card issuers. Barclaycard was the first
ways. To achieve this, we continue to play a New services
UK issuer to share data – such as a series of
leading role in the industry-level work to
minimum payments across multiple cards After text messages were sent to
identify ongoing improvements to the UK’s
or extensive cash advances – which can customers in May, 15,000 regular late-
data sharing governance model.
help us spot customers’ problems in the payers set up a direct debit.
early stages. We expect other issuers to be We seek to improve lending practices to
in a similar position over the course of 2007. keep pace with the market as it develops.
Around 350 million accounts are already For some time we have maintained a ‘low For example, our Flexi-Rate card offers
part of this scheme. A key objective for and grow’ approach whereby customers a lower APR to those who repay more of
2007 will be to start identifying sudden new to credit are given low credit limits. their balance each month. And we have
and extreme changes in customers’ We will only increase this limit once they seen that Flexi-Rate customers are half
circumstances, which look very different have shown that they are able to manage as likely, compared with other customers,
in behavioural terms from a gradually their finances in a responsible fashion, consistently to repay only the minimum
increasing problem. for example, by consistently meeting their amount.
monthly commitment. We have also
The behavioural data sharing project is one Alongside new products we have
introduced other measures, such as
of a number of data sharing initiatives in introduced additional services to give
reduced credit limits, to help ensure that our
which Barclays is playing a leading role. customers more control. For example, to
customers do not over-commit themselves.
Other opportunities include working with help people repay on time we can send text
Callcredit (a UK credit reference agency) alerts to customers five days before their
More appropriate products
on an ‘over-indebtedness initiative’ which monthly repayment date, and put more
One way to encourage responsible
allows us to test the value of sharing certain personalised messages on their statements.
card ownership is to develop products
information relating to a customer’s These help people who often pay late or
that reward customers who manage
income, and working with Government only pay the minimum, by giving a useful
their debt sensibly.
Initiative Data shared Purpose Who is involved?
Historic (‘Non- This is data from customers who signed To allow the inclusion of data A cross-industry effort, where
Consensual’) agreements before Data Protection sharing for ‘long-standing’ customers, numerous responses to a DTI-led
data sharing notification clauses allowed the sharing of helping to address the ‘gaps’ in credit files consultation were submitted in
positive data January 2007
Behavioural Additional data to be shared for credit To increase our ability to identify sudden Barclays is playing a lead role on this
data sharing cards, for example, payment amounts, and severe changes in customer project under the auspices of APACS,
credit limit changes and cash advance circumstances the UK trade association for payments,
activity with a majority of issuers now engaged
Callcredit Over – Current account turnover and income To provide data about income and Being piloted by Barclays and four
indebtedness declared on loan applications debt levels other banks
Data sharing A detailed review of the governance To ensure that processes remain effective Led by the British Bankers’ Association
governance processes surrounding data sharing and managed through a cross-trade
association stakeholder group
14 Barclays PLC
Corporate Responsibility Report 2006