Post on 08-Apr-2018
8/6/2019 Barclay Banks Harsh Sir
1/10
BARCLAYS
BANK
8/6/2019 Barclay Banks Harsh Sir
2/10
IIPM
SUBMITTED BY :-
SWATI SINGH &
RAHUL
SUBMITTED TO :-
PROF. HARSH MALIK
8/6/2019 Barclay Banks Harsh Sir
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COMPANY OVERVIEW
Barclays is one of the leading financial services providers globally. The company
is engaged in retail and commercial banking, credit cards, investment banking,
wealth management and investment management services. The company soperations are spread across 50 countries spanning over the Europe, the US,
and Africa. It is headquartered in London, United Kingdom and employs about
144,200 people. The company recorded revenues* of 31,817 million
($50,678.1 million) in the
financial year (FY) ended December 2009, an increase of 36.2% over FY2008.
Operating income*in FY2009 amounted to 11,642 million ($18,543.4
million), an increase of 91.6% over FY2008. The net profit* was 9,393 million
($14,961.2 million) in FY2009, compared to 4,382 million ($6,979.6
8/6/2019 Barclay Banks Harsh Sir
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BARCLAYS COMPANY PROFILE
Barclay s PLC (Barclay is a leading gobal financial services provider.
Provides commerical Banking, Investment banking. Wealth management, and investmentManagement services.
International :Europe US Africa Asia.
48 millions customers
Headquartered in London
78000 employees.
Barclays has 800 international branches.
8/6/2019 Barclay Banks Harsh Sir
5/10
SWOT ANALYSIS
Barclays is a major global financial service provider engaged in retail and commercial
banking, credit cards, investment banking, wealth management and investment
management services. Barclays leverages its leading position in the UK and the world to
benefit from economies of scale. However subprime exposure could affect the flow of new
money while weak economic prospects in the UK could impact the company s revenue
and margins.
Strengths
Extensive network in Europe provides business sustenance
Barclays (Barclays) is a leading global financial services provider operating in over 50
countries inEurope, the US, the Middle East, Latin America, Australia, Asia and Africa. Barclays has
one of the
largest branch networks in the UK with 1,733 branches and an extensive network of
cash machines.
Barclays customer base exceeds 48 million. Out of this customer base, UK accounts for
15 millionretail customers and more than 724,000 business customers in the UK. This platform
helped it
become one of the leading credit card providers in Europe. Out of the total 19 million
card customers,
8.8 million are non-UK customers. Barclays strong UK franchise and network in Europe
enable it
to become one of the leading global financial services providers.
8/6/2019 Barclay Banks Harsh Sir
6/10
BARCLAYS STRENGTHS
Widespread presence , allowing it to spread
Well established historically
Barclays is associated with innovation : First credit card in 1966
* Barclays has a widespread global presence, allowing it to spread risk and enjoy
economies of scale.
* The Barclays brand is well-established historically and continually promoted, for
example through sponsorship of Premier League football.
* Barclays is particularly associated with innovation. It brought out the first credit
card in 1966, and has continued to develop cards, most recently the OnePulse cardcombing Oyster, cashless and credit functions for London-based customers.
* The opening of several new flagship branches along with a refurbishment
programme can be seen as an attempt to refocus on customer demands for a strong
presence on the high street (see threats).
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Strained trading income impacting the revenue diversity.
* If the economic downturn is prolonged, acquisition of Lehmans assets could prove to be a
mistake.
* Barclays has been accused of moving loss-making investments associated with the sub-
prime market from its accounts to those of other investors, and there is a risk it may be sued.
* While offering a wide range of services provides opportunities, there is also the threat
that customers may prefer to go to suppliers who present a more specialised approach.
* Barclays acquired a reputation for closing branches because of a high incidence of this
in 2000, and competitors have been able to position themselves as more consumer-friendly
through a strategy of keeping branches open.
* The Asia expansion is seen as risky given that Barclays are in a less strong position than
banking industry leaders regarding capitalisl=ation, and this may detract investors.
Weaknesses :-
8/6/2019 Barclay Banks Harsh Sir
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Opportunities:--
Barclays has exposure to US subprime through its own books in Barclays Capital and also
through EquiFirst, a mortgage originator that was acquired in March 2007. Barclays
Capital had approximately 36 billion ($52.12 billion) of exposure to US subprime and Alt-
A mortgages as well as insurers, commercial mortgages, structured investment vehiclesand leveraged finance at the end of 2007 Strained trading income impacting the revenue
diversity.
* Barclays was keen to acquire some of Lehmans assets prior to its collapse: after the
collapse, they have been able to negotiate a better deal with liquidators which also
allowed them to be very selective in which parts of the business they acquired* The banks strategy is to offer a full portfolio of services worldwide, providing a wide
range of cross-selling opportunities.
* Asia is still considered an opportunity for Barclays expansion, and operations are
being set up in a number of locations.
* Welfare provision has decreased in many countries because of the cost to
governments, and Barclays sees self-provision as an increasing trend that it can utilise.
* The court recently found that Barclays banking charges, which had been challenged
legally, were enforceable, thus repayment is not necessary and charges can continue to
be enforced.
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Threats :--
.
Strained trading income impacting the revenue diversity.
* If the economic downturn is prolonged, acquisition of Lehmans assets could prove to
be a mistake.
* Barclays has been accused of moving loss-making investments associated with the
sub-prime market from its accounts to those of other investors, and there is a risk it may
be sued.
* While offering a wide range of services provides opportunities, there is also the threat
that customers may prefer to go to suppliers who present a more specialised approach.
* Barclays acquired a reputation for closing branches because of a high incidence of
this in 2000, and competitors have been able to position themselves as more consumer-
friendly through a strategy of keeping branches open.
* The Asia expansion is seen as risky given that Barclays are in a less strong position
than banking industry leaders regarding capitalisation, and this may detract investors.
8/6/2019 Barclay Banks Harsh Sir
10/10
THANKS