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Barclay Banks Harsh Sir

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    BARCLAYS

    BANK

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    IIPM

    SUBMITTED BY :-

    SWATI SINGH &

    RAHUL

    SUBMITTED TO :-

    PROF. HARSH MALIK

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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

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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.

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    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.

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    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 :-

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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.

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    THANKS


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