Presentation to the Standing Committee

on Finance and Portfolio Committee

on Trade and Industry

Maria Ramos
Group Chief Executive Officer
Barclays Africa Group Ltd

14 March 2017
 We are a pan-African bank
JSE listed with a market capitalization of R143bn

Total balance sheet of R1.1tn

Paid R7.3bn in taxes

Paid R8.5bn in dividends

Spent R16.1bn on procurement

We are systemically important in all markets where

we operate

50.1% of Barclays Africa shareholding

is held by Barclays PLC (UK)

25% SA shareholders

Foreign investment differs from white ownership

All figures as at 31 December 2016
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 Barclays Africa trades as Absa in South Africa

We have a diversified portfolio of businesses including:

Retail Banking
Business Banking
Corporate and Investment Banking
Wealth, Investment Management and Insurance

Total lending in South Africa comprises:

R192bn to Corporate and Investment Bank clients
R71bn to SMEs
R387bn to retail clients

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 Our business is driven by a philosophy of Shared Growth which informs our
approach to transformation
Shared Growth
Using our core assets (financial, expertise and infrastructure) to develop solutions that enable our
communities to participate in the economy in a meaningful and sustainable manner

1 2 3
Education & Skills Enterprise development Financial inclusion
Focus on skilling young people and Helping SMEs access markets and Digital delivery of financial and
creating access to education finance non-financial products and services
and consumer literacy

Supporting economic growth, competitiveness, entrepreneurship, job creation,

reduction in poverty and inequality

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 R1.4bn committed to education and skills
10,521 School
R26m invested in
Governing Body
University strategic
members trained in
support i.e. Research,
2,725 schools
Chairs
Successful partnership with the
Successful partnerships R80m spent in
Department of Education,
established support of 1,785* expanding in 2017
missing middle
students at 15
universities

R210m has been budgeted to

205,366 youth support 3,000 students in 2017 Partnership with
registered/ 16 TVETs
trained for strengthened
ReadytoWork
Our skills building programme
Successful implementation of the
that prepares young people for
Adopt a TVET initiative expanding in
the world of work
2017

* Pending outstanding applications from Eastern Cape universities for 2016 fees from missing middle applicants
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 Enterprise and supplier development
We believe that establishing successful and sustainable SMEs require both financial and non-financial support. We are doing this through:
Preferential
procurement
Our preferential
procurement program
ensures that a growing
number of small black and
black women owned
businesses supply us with
goods and services. We
have spent a total of
R13.3bn on procurement
from black owned
businesses since 2012.
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Access to markets
Through our market portal
we are linking small
businesses with corporate
buyers. The market portal
has 59k registered SMEs,
7 000 corporate buyers
and R2.5bn tenders
advertised monthly
Financing
In 2016 alone we agreed to
R1.38bn worth of finance
mandates for emerging
SMEs who are doing
business with corporate
partners
In 2016 we contributed
R40m to the establishment
of a R1.5bn SA SME Fund
(a CEO initiative) that aims to
provide funding to high
growth and scalable SMEs
Infrastructure and
training
Our 7 enterprise
development centres
provide SMEs with training,
office infrastructure and
support networks
(accounting, legal,
technology). In 2016 alone
we provided training
to 40k SMEs
 Access to financial services
We are constantly innovating how we can increase access of financial products and services to customers whilst reducing the accompanying
costs

Largest ATM network Cash accepting ATMs gives Cash send gives Absa customers
in South Africa with customers the option of depositing the option of sending cash to
8 885 ATMs cash at an ATM rather than branch anybody who has a mobile phone

ATMs offer 8 Free electronic banking Free data for mobile banking
language options

Mobile Banking app offers MegaU First free youth PEP partnership provides an
prepaid electricity banking account additional 1800 access points
for basic banking and money
transfers

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 Our scorecard reflects our focus on transformation and the progress we have
made to date
Maximum YoY
Key indicators points 2012 2013 2014 2015 2016 trend
Ownership 14.00 7.87 6.62 8.73 8.66 9.94
Management control 8.00 6.06 3.04 3.24 3.63 4.96
Employment equity 15.00 8.56 9.70 9.87 10.22 11.72
Skills development 10.00 12.30 9.07 9.12 9.68 10.00
Preferential procurement 16.00 17.98 14.92 15.28 16.00 16.00
Empowerment financing 15.00 n/a 13.91 14.80 15.00 15.00
Enterprise development 5.00 15.00 5.00 5.00 5.00 5.00
Socio-economic development 3.00 5.00 3.00 3.00 3.00 3.00
Access to financial services 14.00 n/a 9.90 10.40 10.00 12.94
Total 100.00 72.78 75.16 79.44 81.19 88.56
BBBEE contributor level status Level 4 Level 3 Level 3 Level 3 Level 2

Our BBBEE contribution status improved from Level 3 (2015) to Level 2 (2016)
In 2004, we were the first of the major banks to allocate 10% ownership to black partners through the Batho Bonke empowerment
consortium. The deal was unwound partly in 2009 and fully in 2012, after the consortium sold their equity.
We intend to conclude another BEE transaction to which Barclays PLC has already committed about 1.5% of Barclays Africa market
capitalization (ca. R2.1bn as at 31 Dec 2016)
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 Management control
Our Board is a reflection of our international shareholding
Board composition (%)
and pan-African footprint
12.5
Black Male 25%
31.3
12.5 We need to do more to increase representation at a Board
black
Black Female and top management level:
White
The Barclays divestment is likely to result in changes to
Non-SA 43.8 our Board that will increase local diversity

We are building a strong black talent pipeline within the

executive committees of our key businesses where black
Group Exco composition representation is 44% and woman representation is
35%
Black Male
17%
34% We have sufficient depth of talent to meet the future group
Black Female black
executive committee requirements
17%
White 66%

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 Employment equity
We are making steady progress in all tiers of management
however more needs to be done
80.0% % black representation at different management tiers
We have devoted significant resources on local and
70.0% international leadership programs to build our own pipeline
60.0%
50.0% A total of R975m was spent on skills development of
40.0% black employees since 2012
30.0%
Training expenditure on black employees has increased
20.0% from 63% of total training spend in 2012 to 73% in
10.0% 2016
0.0%
Top management Senior Middle Junior 88% of new hires are black
management mangement management

2012 2013 2014 2015 2016 83% of new promotions are black

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 Concluding comments

We are committed to transformation and the reduction of poverty, unemployment & inequality.
Our business is grounded in the philosophy of Shared Growth and our efforts in education and
skills development will help beneficiaries find employment.
Improvements in our FSC scorecard shows our determination to transform however we
acknowledge that much more needs to be done.
At Barclays Africa transformation goes beyond compliance with the scorecard. Our task is to
create a truly transformed organization where we empower our people to fulfill their purpose.
The intention of our major shareholder Barclays PLC to sell-down its shareholding in Barclays
Africa gives black South Africans an opportunity to increase their direct and indirect
shareholding in the Group.
Much progress has been made building a strong pipeline of black talent that, together with our
focus on promotions and recruitment, will help us close the employment equity gaps at top
and senior management levels.

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