About this report

Scope and boundary

Our integrated report covers our performance between 1 January 2016 and 31 December 2016 (the reporting period). Distinct from a financial reporting boundary, this report includes information regarding our stakeholder relationships, opportunities and risks as the outcomes of our business activities including key banking and insurance subsidiaries.

The broad-based black economic empowerment (BBBEE) information applies only to our South African operations.

This report contains statements that relate to future operations and performance of the Group. These statements are not guarantees of future operating, financial or other results and involve uncertainty, as they rely on future circumstances – some of which are beyond our control. Therefore, actual results and outcomes may differ.

Board approval

Assisted by our Disclosure Committee, our Board accepts ultimate responsibility for the integrity and completeness of this integrated report. It is our directors’ opinion that this report presents a fair and balanced view of our integrated performance. We believe this report shows we are creating sustainable value and prosperity for stakeholders.

The Board notes the uncertainty and potential future impact on our operations arising from Barclays PLC’s sell down1 of its shareholding in Barclays Africa, the resulting operational separation1 process and, the impact on future value. An Ad hoc committee was established to provide oversight of the process and ensure operational stability, sound risk management and value maximisation for all stakeholders. Further details and key considerations relating to the sell-down and separation process can be found in the governance review.

The sell-down is subject to regulatory review, and we will communicate with our shareholders and other stakeholders as the process progresses.

Readers should exercise caution when interpreting any forward-looking statements.

The Board approved this 2016 Integrated Report on 22 March 2017.

1 Barclays PLC’s sell down of its shares in Barclays Africa (‘the sell-down’) refers to the regulated disposal of its shares with the aim to achieve regulatory deconsolidation. The ‘separation process’ refers to the broader short, medium and long-term operational and administrative activities which disengage the businesses from one another.

The Six Capitals, materiality and our Balanced Scorecard

Our operations benefit from a number of key resources and stakeholder relationships. Through the execution of our business activities, we increase, decrease or transform the Six Capitals, as defined in the International Integrated Reporting Council’s International <IR> Framework. Some impacts are easy to identify, quantify, manage and measure, while others are complex and require an active process for considering and managing trade-offs.

As we are a financial services group, financial capital is our most significant capital input – critical for achieving our strategic goals. The human, intellectual and manufactured capitals are the backbone of our product and service delivery. Social and relationship capital, and how we manage natural capital (even as a small consumer thereof) are significant to our social licence to operate. We believe our Balanced Scorecard is a suitable framework for measuring the impact of our business activities on the Six Capitals.

Our integrated report is focused on matters we consider to be material. Specifically, it focuses on those matters which have, or could have the ability to influence our financial performance or our reputation, or impact on our licence to operate. We report on our performance in managing these material matters through our Balanced Scorecard.

Assurance

We used a combination of internal controls, management assurance and compliance, and internal audit reviews to ensure the accuracy of our integrated report.

We appointed PricewaterhouseCoopers Inc. (PwC) and Ernst & Young Inc. (EY) to undertake a limited assurance engagement on selected key performance indicators set out in our Balanced Scorecard (marked with an LA). The external assurance report provided by EY and PwC contains their unmodified conclusion for the limited assurance engagement performed.

The National Empowerment Rating Agency (NERA) has verified our broad-based black economic empowerment (BBBEE) performance for the South African operations. They have confirmed a Level 2 rating.