Triple Bottom Line
Triple Bottom line.
Corporate sustainability involves meeting the needs of today’s stakeholders in a manner that protects the environment and resources needed for future generation.
It is directed at improving a company’s triple bottom line, which covers its performance on economic environment and social metrics.
Economic.
Barclays demonstrated significant success in delivering much better financial results between 2002 to 2005. They improved the cost-to-income ratio by right sizing the business in terms of head-count, and stream-lined process and systems to extract economies of scale, including taking back-offices out of the branches and centralizing them.
By 2005 they were operating on capital of about 250 Million pounds and delivering about 125 million profits per annum.
Although the case study talks about the improvements delivered by the team between 2002 and 2005 it makes no mention of what caused the drop in financial performance between 2001 and 2002, which can be seen on exhibit 8 i.e. a drop in PBT from 116 million pounds to 83 million pounds; A drop of 28.4%. This all came from the income side of the Profit and loss summary but is not explained in the case at all.
From 2002 to 2004, per exhibit 8, income grew 19% from 235 million pounds to 301 million pounds while costs were held at an 11% increase from 152 million pounds to 169 million pounds. This led to the 27.7% increase at the PBT level. Note the PBT of 106 million pounds in 2004 is still below that of 2001, which was 116 million pounds.
So although the case is successful if looked at using 2002 as a start, the answer is different if 2001 is used as the starting point.
Going Forward.
With the acquisition of ABSA being such a large South African operation it would become by far the dominant contributor to the Barclays Africa economic story.
So the focus would have to be to extract the benefits from the acquisition namely: * The growth in corporate and international, that can be
Corporate sustainability involves meeting the needs of today’s stakeholders in a manner that protects the environment and resources needed for future generation.
It is directed at improving a company’s triple bottom line, which covers its performance on economic environment and social metrics.
Economic.
Barclays demonstrated significant success in delivering much better financial results between 2002 to 2005. They improved the cost-to-income ratio by right sizing the business in terms of head-count, and stream-lined process and systems to extract economies of scale, including taking back-offices out of the branches and centralizing them.
By 2005 they were operating on capital of about 250 Million pounds and delivering about 125 million profits per annum.
Although the case study talks about the improvements delivered by the team between 2002 and 2005 it makes no mention of what caused the drop in financial performance between 2001 and 2002, which can be seen on exhibit 8 i.e. a drop in PBT from 116 million pounds to 83 million pounds; A drop of 28.4%. This all came from the income side of the Profit and loss summary but is not explained in the case at all.
From 2002 to 2004, per exhibit 8, income grew 19% from 235 million pounds to 301 million pounds while costs were held at an 11% increase from 152 million pounds to 169 million pounds. This led to the 27.7% increase at the PBT level. Note the PBT of 106 million pounds in 2004 is still below that of 2001, which was 116 million pounds.
So although the case is successful if looked at using 2002 as a start, the answer is different if 2001 is used as the starting point.
Going Forward.
With the acquisition of ABSA being such a large South African operation it would become by far the dominant contributor to the Barclays Africa economic story.
So the focus would have to be to extract the benefits from the acquisition namely: * The growth in corporate and international, that can be