Barclays PLC AGM 2002

Barclays PLC
25 April 2002




                   BARCLAYS PLC - ANNUAL GENERAL MEETING 2002

                           STATEMENT BY THE CHAIRMAN


Barclays performed pretty well in 2001.



As you will have seen from the Summary Financial Statement, profit before tax
rose 9% to £3.61 billion. Earnings per share, taking account of the Woolwich
acquisition and therefore on a like for like basis, rose 10% to 174.1p and
after-tax return on equity was a healthy 20%.  Dividend per share was 66.5p, an
increase of 15% over 2000.  Our strategic investment in the business was around
£551 million during the year.  Our performance compared well with our
competitors.  Barclays share price closed last night at £24.44 which is I think
the highest it has been, although it has come back a bit this morning.



And 2001 was a difficult year in many ways.



There was a significant slowdown in all major economies, stock markets were
volatile and generally lower, and the technology, media and telecom sectors were
in decline.



At last year's AGM, the foot and mouth crisis had just started.  I doubt if any
of us could have predicted how long the crisis would last, or how profound its
impact would be on rural Britain.  We, of course, are a big agricultural bank
and were quick to respond with tailored support for our farming customers.  In
September as the crisis deepened, we extended this support to all business
customers affected by the impact of foot and mouth.  In addition we set up a
£1.5 million Rural Regeneration Fund to help rural communities rebuild
themselves.



On September 11th, we experienced the terrible events in New York and
Washington.



Barclays has offices just a few blocks away from the World Trade centre. It was
quite extraordinary, looking at two tall American buildings, you could see right
through to the water.  It was quite amazing.  Thankfully no Barclays staff were
lost, but many lost family and friends.  Both Matt Barrett and I visited New
York shortly after the disaster.  We were impressed with the resilience of New
Yorkers.  Above all, we were very proud of the way our own people responded.
Under extremely difficult circumstances, our staff in New York, and I have to
say supported by their colleagues around the world, worked tirelessly to keep
things going for customers.  It was a tremendous effort and showed the
resilience of the Bank's system.



The Financial Services and Markets Act 2000 came into force on 1st December
2001, finally giving the FSA full powers as our lead regulator.  Having a strong
and effective regulator is in the best interests of all our stakeholders but you
will have noticed that I drew attention in my statement in the Annual Report to
the need for balance between effective regulation and the high and growing costs
of compliance, as this is all happening at a time of increasing domestic and
international competition.



Getting more gloomy we have now received the Government's report on the
Competition Commission review into banking for small businesses.  The report
found that the vast majority, some 84%, of small business customers is satisfied
or very satisfied with their main bank.  Barclays received several favourable
references.  We were shown to be the cheapest of the main clearing banks with
the lowest bad debt rate.  Yet the banks were said to be making excessive
profits.  We totally disagree with this assertion, as we believe the methodology
used by the Commission was flawed.  The Commission looked only at our
profitability between 1998 and 2000 - which happened to be three of our best and
most profitable years - without taking full account of the full economic cycle.



What is even more serious, if the Commission's thought process was applied more
generally to the economy, we should face a widespread imposition of price
controls with all the obvious damage that brings to enterprise and
competitiveness. After all, banks profits are not excessive compared with other
industries.  And, using the Commission's calculations, 32 of the 38 sectors in
the FT 500 index, would be earning excessive returns.  So there is a real
threat.



All these events from which we are buffeted throughout the year remind us that
our shareholders, customers, staff and the wider community rely on us through
the bad times as well as the good.   This is when our integrity, professionalism
and over 300 years of experience really count.



Barclays commitment to all our stakeholders is detailed in the new 2001 Social
and Environmental Report - 'Including You' - which is published today.  It
illustrates the significant contribution we make to the wider community.  Copies
are available outside.



Barclays serves 20 million customers around the world. In 2001 we paid £1.1
billion to some 900,000 shareholders in dividends;

£1 billion in taxes; and over £3 billion in salaries to our employees.



We believe that our commitment to communities makes good business sense, it
reinforces our relationship with the communities where our people live and work
and contributes to the social fabric particularly of deprived areas.



In addition to our support to regenerate rural communities, we are the first
bank to create a dedicated Urban and Regional Economic Regeneration Unit.  We
have allocated £200 million to this unit, and what it does is work with national
and local government agencies to develop commercially viable projects supporting
economic development and regeneration.  In addition, we have provided  £20
million of equity financing during 2002 to support the DTI backed venture
capital funds, another area where we are very keen.



You will find a full account of Barclays community support in the 'Including
You' booklet.  Our Community Programme, the charity part of what we do, focuses
on five main areas - the arts, education, the environment, people with
disabilities and the socially disadvantaged.  In 2001 our community support,
thanks to the profits produced by the executive team, totalled £31 million.  We
are one of the largest corporate givers.



One highlight has been our 'Invest and Inspire' programme.  Through a unique
partnership with the British Museum, National Theatre, National Gallery and Tate
Britain - the first ever of its kind - with which we are working to improve
accessibility to the arts for everyone.



Another example is our support for 'Excellence and Access', a project run by the
Personal Finance Education Group to promote financial education of UK school
children.  Something we are specially interested in.



A particular pleasure and source of much pride is our peoples' very active and
enthusiastic engagement in their local communities.  Barclays supports their
efforts with a range of schemes, such as Employee Volunteering and the Hour for
Hour scheme.  Last year, in the UK more than 10,000 employees took part in
community activities, from fundraising to volunteering.  Through our £ for £
matching funding we helped staff raise nearly £6 million for charities and their
choice and community groups.  In 2001, we introduced a new way to thank staff
for their community work.  Barclays plants a tree for every community volunteer
- it not only acts as a lasting tribute but also is good for the environment and
helps towards our target of being Carbon Neutral, which is a bit difficult if
you are a bank.



Barclays is meeting the challenges of the present while preparing for the
future.  The business is in the course of fundamental change which is not
something I expect to change.  Our staff have been magnificent in their
commitment and adaptability. They are excellently led by Matthew Barrett and his
executive colleagues.




This document contains certain forward-looking statements within the meaning of
Section 21E of the U.S. Securities Exchange Act 1934, as amended, with respect
to certain of Barclays plans and its current goals and expectations relating to
its future financial condition and performance. These forward-looking statements
can be identified by the fact that they do not relate only to historical or
current facts. Forward-looking statements often use words such as 'anticipate',
'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', or other
words of similar meaning. By their nature, forward-looking statements involve
risk and uncertainty because they relate to future events and circumstances,
including UK domestic and global economic and business conditions, market
related risks such as changes in interest rates and exchange rates, the policies
and actions of governmental and regulatory authorities, changes in legislation
and the impact of competition, a number of which are beyond Barclays control. As
a result, Barclays actual future results may differ materially from the plans,
goals and expectations set forth in the forward-looking statements. For a
discussion of some of the factors that may cause actual future results and
developments to differ materially from these forward-looking statements, see
Risk Factors in our 2001 Annual Report which is available on the Internet at
www.investor.barclays.co.uk/results.  Any forward-looking statements made by or
on behalf of Barclays speak only as of the date they are made. Barclays does not
undertake to update forward-looking statements to reflect any changes in
Barclays expectations with regard thereto or any changes in events, conditions
or circumstances on which any such statement is based. The reader should,
however, consult any further disclosures Barclays may make in documents it files
with the U.S. Securities and Exchange Commission.







                   BARCLAYS PLC - ANNUAL GENERAL MEETING 2002

                     STATEMENT BY THE GROUP CHIEF EXECUTIVE





Barclays performed well in 2001.  I want to thank our colleagues at every level
and everywhere around the world, for their considerable contributions to these
results.   As you heard they were achieved in a more uncertain global
environment and in the midst of the accelerating transformation of the industry
and of Barclays itself.



                                ***************



This morning I would like to share with you the highlights of a year, a year
when we made significant progress in serving all our stakeholders -
shareholders, customers, employees and communities - and how we did so while
successfully navigating the more uncertain global environment.



Shareholders.



Two years ago we committed ourselves to a set of stretching value goals: 1) to
rank in the top quartile of our peer group in terms of total shareholder return
- that is the combined increase in the value of your share plus dividends; 2) to
double value every four years; and 3) to double economic profit in four years.



Despite a tough year generally for stock markets in 2001 (the FTSE100, for
example fell by an unprecedented 14%), for our shareholders total return was in
the top quartile of our peer group of 12 domestic and international banks.  So
relative performance met our goal.



Our second goal is to double value for shareholders every 4 years.  The pace
required to do this after the first 2 years demands that £100 invested in
Barclays at end of 1999 grow to £142 (assuming that dividends are reinvested) by
the end of 2001.  The actual number was £137.  This, compared to our £137, the
average performance of the peer group over the same 2-year period was £119 and
the FTSE 100 overall £79.



Finally, doubling economic profit every four years requires that we grow at an
average of 19% compound from the 1999 base year.  This required us to be at £2.5
billion of cumulative economic profit for 2000 and 2001.  We actually achieved
£2.7 billion, putting us ahead of the required pace to meet the four-year goal.



So we are delivering on commitments made to our owners.



In 2001, we also made further progress in transforming everything we do for
customers.



Our aim is, of course, to attract, develop and retain many millions of customers
by delivering a superior all-around customer experience and offering high value
products and services that consistently meet and exceed customer expectations.



We know that we still have some ways to go but we are getting really there.



Let me give you a few examples from 2001:



  • In Personal Financial Services, we have reinvigorated the products we
    offer with Woolwich mortgages, Legal & General investment products, and new
    highly competitive savings propositions.  These have proved very popular.
    In addition, personal pricing on loans has benefited over 330,000 customers
    and our revamped overdraft offering has benefited some 2 million customers.
    We have recently extended the opening hours of 40 branches in the first wave
    of a major initiative to make it easier for time-pressed customers to do
    their banking at times convenient for them.  We have also improved the
    online and telephone banking services to make it easier to do business with
    us.



You can expect more improvements of this nature this year.



  • We began selling Open Plan to Barclays customers in September.  This
    innovative proposition, first introduced and pioneered by the Woolwich,
    links the current account, savings and mortgage into a single package, which
    can save thousands of pounds in interest payments for customers and it can
    cut several years off the life of a typical mortgage.  Over 100,000 Barclays
    customers have signed up already in addition to the 1 million who have done
    so in the Woolwich.



  • In Business Banking, we helped 240 new businesses start up every day of
    2001 - a total of about 60,000 overall - while continuing to provide
    excellent service to our existing customers.  And, as the Chairman
    commented, we demonstrated that we are there for our customers when they
    need us most.  We quickly developed a special package of measures to help
    our farming customers and related businesses throughout rural areas who were
    hit hard by the foot and mouth crisis.  We also helped, in a more difficult
    economic environment generally, nurture back to health some 1,200 businesses
    that had run into trouble in the more challenging economic environment.



This business received a great deal of attention recently following the
publication of the Competition Commission review into banking for small and
medium sized businesses.  Make no mistake about it: this is a fiercely
competitive business in which I am happy to say Barclays has distinguished
itself by delivering excellent service and value to its customers.  And we
commit to continue to do so.



  • In Barclaycard, we continued to develop targeted, tailored offerings to
    match diverse customer needs.  As a result, we saw record recruitment of new
    customers in the UK of 763,000 and also saw a 7% increase in cards issued in
    Continental Europe bringing the total there to 1.25 million.



  • In Barclays Private Clients, our wealth management business, our customers
    responded positively to new initiatives. Our products per customer
    increased.  Sales of the Legal & General product range, launched in the 4th
    quarter were some 20% higher than in the equivalent period of 2000, and we
    launched Open Plan in Spain which led to a seven-fold increase in mortgage
    sales, 80% from customers new to Barclays.



  • In Barclays Capital, we achieved a 77% increase in client transaction
    volumes.  For the first time, half of our revenues in this business came
    from outside the UK, confirming our global reach.



  • Finally, Barclays Global Investors attracted a strong flow of new assets
    (an impressive £42 billion) and delivered good investment performance.



So in 2001 we continued to deliver for our growing customer base.  But I don't
want you to think that there is room for complacency - we must maintain the pace
of our transformation.  We continue to improve and invigorate our services for
our customers.



Employees



We aim to attract, develop and retain talented, performance-oriented people by
providing superior employment opportunities that fulfil individual expectations.
  Here too, we have made good progress.



  • We worked with our union partner, UNIFI, to revamp our performance
    development and pay policies to reward outstanding achievement, while
    creating a direct link between individual pay and Barclays performance.



•         We adopted family-friendly policies to address the work/life balance
in areas such as parental leave, paid carer leave, the recognition of
multi-faith holidays, and career breaks.  Barclays is now one of the leading
employers in the UK in this area.



•         We invested millions of pounds in training and education because here
we want to promote life-long learning throughout the bank to give people new
skills they will need in the future and while helping them perform better in the
current roles.  To that end, we launched the Barclays University for staff,
opening the first campus in Birmingham last September.



•         Barclays is committed to ensuring equal opportunity for everyone to
advance in their career by eliminating all glass ceilings.  For us, this is not
a matter of political correctness.  We believe our equality and diversity
programmes differentiate Barclays from the competition and they strengthen our
business performance.  They allow us to recruit the best people from the widest
possible talent pool.  They build employee commitment.  They support innovation
by tapping into different perspectives and different experiences.  All of that
helps us to attract and retain customers.



Last year, we conducted the first ever staff survey on these issues at Barclays.
As a direct result, we are confronting diversity gaps in our workforce and
confronting all artificial barriers to advancement.  The progress to date
already places us alongside the very best for the fairness and transparency of
our policies.



So here too, we have made significant advances in 2001.



Finally, Communities



Sir Peter has already spoken about our contributions to communities, and I want
to thank the thousands and thousands of employees who have devoted their time
and energy to this work.



Philanthropy is of course important, and we are committed to it.  But it is
important to bear in mind that our greatest contribution to the common good is
running a successful business.



So shareholders, I am pleased to report a healthy business.   All major business
groupings in Barclays have contributed to a solid start to this year.









This document contains certain forward-looking statements within the meaning of
Section 21E of the U.S. Securities Exchange Act 1934, as amended, with respect
to certain of Barclays plans and its current goals and expectations relating to
its future financial condition and performance. These forward-looking statements
can be identified by the fact that they do not relate only to historical or
current facts. Forward-looking statements often use words such as 'anticipate',
'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', or other
words of similar meaning. By their nature, forward-looking statements involve
risk and uncertainty because they relate to future events and circumstances,
including UK domestic and global economic and business conditions, market
related risks such as changes in interest rates and exchange rates, the policies
and actions of governmental and regulatory authorities, changes in legislation
and the impact of competition, a number of which are beyond Barclays control. As
a result, Barclays actual future results may differ materially from the plans,
goals and expectations set forth in the forward-looking statements. For a
discussion of some of the factors that may cause actual future results and
developments to differ materially from these forward-looking statements, see
Risk Factors in our 2001 Annual Report which is available on the Internet at
www.investor.barclays.co.uk/results.  Any forward-looking statements made by or
on behalf of Barclays speak only as of the date they are made. Barclays does not
undertake to update forward-looking statements to reflect any changes in
Barclays expectations with regard thereto or any changes in events, conditions
or circumstances on which any such statement is based. The reader should,
however, consult any further disclosures Barclays may make in documents it files
with the U.S. Securities and Exchange Commission.







                      This information is provided by RNS
            The company news service from the London Stock Exchange