Steady Advancements and Tactical Growth in Q3 2017
In the third quarter of 2017, Barclays PLC took significant strides in its strategic journey, as outlined in the company's Annual Report for that year. Despite the absence of a detailed quarterly breakdown of specific initiatives in the performance reports, the Annual Report provides valuable insights into the strategic actions and milestones achieved by Barclays during Q3 2017.
One of the most notable achievements was the early closure of the Non-Core unit, six months ahead of schedule. This move involved the elimination of approximately £95 billion of risk-weighted assets, the sale of over 20 businesses, the exit from operations in about a dozen countries, and a reduction in costs by over £2 billion over three years.
Another significant development was the establishment of the Group Service Company, which consolidated employment for around 42,000 of Barclays' 80,000 employees. This move aimed to leverage operational and technological strength to gain cost efficiencies and improve effectiveness across the Group.
Additionally, Barclays made substantial progress in building its UK ring-fenced bank, with expectations of full operation by the time of their Annual General Meeting.
These initiatives were part of a broader strategy focused on strengthening capital, reducing risk, improving operational efficiencies, and enhancing customer service through technological advancement. The financial performance in 2017 showed progress, with Group profit before tax up by 10% year on year, largely driven by a reduction in Non-Core losses.
Beyond these strategic initiatives, Barclays maintained a leading conversion ratio and reported a Q3 EBITA margin of 5.4%. The revenue growth trend in September and October of 2017 was slightly above Q3 2017, indicating a positive momentum. The company had a strong cash conversion and balance sheet, with 0.8x net debt to EBITDA excluding one-offs.
Barclays also made headlines in 2017, ranking 2nd in the Great Place to Work® - World's Best Workplaces 2017. Underlying productivity continued with a 2% increase in FTE employees organically. Q3 2017 revenue growth was 6% organically, adjusted for trading days.
However, it's worth noting that Barclays incurred a one-time, non-cash charge of EUR 129 million due to streamlining the brand portfolio. Despite this, the company launched a new online freelancer platform, YOSS, in Q3 2017, co-created with Microsoft, marking another step forward in their digital transformation journey.
In summary, for Barclays in Q3 2017, the strategic agenda focused on accelerating the closure of the Non-Core unit, establishing the Group Service Company to drive operational efficiencies, and progressing the UK ring-fenced bank setup, all aimed at improving capital strength, reducing risk, and enhancing competitiveness through operational and technological improvements.
The strategic initiatives taken by Barclays PLC in Q3 2017, as outlined in the Annual Report, included the leveraging of technology to establish the Group Service Company, consolidating employment for around 42,000 employees and aimed at gaining cost efficiencies and improving effectiveness across the Group in the business sector. Furthermore, these moves were part of a broader strategy to strengthen capital,reduce risk, and enhance customer service through technological advancement in the finance industry.
