Progress against our 2017 governance objectives

The Directors’ Affairs Committee monitors the execution of our strategy in the key areas forming part of the Board governance objectives. The Board and its committees held regular meetings and rigorously attended to the oversight of these matters. The Board recognises that there is more to be done in certain areas of our strategy execution and business performance, in particular regarding top-line income growth, customer service, IT stability, and in areas impacting our people and culture. We believe that these continue to be the appropriate areas to focus on and intensify our efforts in.

Objective How we performed
1 Review the progress of our Group’s strategy execution, having regard to the prevailing macroeconomic conditions, and in the context of a sound control and risk environment, and ethical and transparent leadership.

The Board substantively achieved against this objective, monitoring the execution of the One Africa strategy in the context of the macroeconomic environment, but will in the coming year focus to a greater extent on comparative and competitor information and the customer dynamic, especially in areas where market share has declined and where top-line growth has been a challenge.

Key matters deliberated by our Board; Social and Ethics Committee

2 Monitor the implementation of the Group’s IT strategy, with a focus on resilience and appropriate investment spend.

The Board substantively achieved against this objective, with much work done in regard to monitoring the ‘run the bank’ and ‘change the bank’ initiatives, with a significant book of work and a move to a new data centre. Resilience and cyber security remains a focus area with a need to improve reliable access to our systems and applications particularly for the Rest of Africa banking operations.

Information Technology Committee

3 Ensure that risk and capital management frameworks are appropriate in the context of a shifting global regulatory and risk environment, and a changing business environment.

The Board fully achieved against this objective, having considered the regulatory environment and the related impact on our banks and management’s responses. The potential effects of IFRS 9 were taken into account in capital planning. Regulatory reporting on key matters such as the internal capital adequacy assessment process report (ICAAP), Pillar 3, and recovery and resolution continued to improve; and matters of credit and concentration risk were brought as events unfolded in relation to our public and private sector clients, enabling swift but measured action to be taken.

Group Risk and Capital Management Committee; Group Audit and Compliance Committee; Credit Concentration Risk Committee

4 Monitor and assess the people agenda and the culture of our organisation.

The Board substantively achieved against this objective with regular reports on our Black Economic Empowerment scorecard, Shared Growth, and the management of stakeholders, conduct and employees being considered. Continued focus will be on those items which contribute to the culture of our organisation and where we anticipate positive change; and on those items (stakeholders and citizenship) that support our journey to full application of King IV.

Social and Ethics Committee

5 Oversee the Barclays PLC sell-down, with a specific focus on the execution thereof, following regulatory approval.

The Board fully achieved against this objective, monitoring each aspect of the sell-down and establishment of the BEE warehousing structure; while at the same time receiving reports on execution progress and related cost and strategic investment spend.

Separation Oversight Committee

2018 Governance objectives

  1. New corporate strategy – Oversee management’s delivery of the approved growth strategy into detailed execution plans.
  2. Business-as-usual – Monitor and assess the business-as-usual execution in the context of significant change and the new strategy.
  3. Technology – Oversee system stability while the Group manages change and transforms the technology landscape, taking into account both the Separation and the growth strategy.
  4. Transformation and digitisation – Oversee and assess how we are transforming our business in the areas of growth (top line and returns), building a scalable, digitally-led business, and playing a role in shaping society.
  5. People and culture (an underpin to the strategy) – Monitor and assess our progress with respect to diversity and the renewed culture, as an enabler of the new strategy.
  6. The Separation – Oversee the execution of the Separation programme.