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

3/10

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

4/10

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).

8/6/2019 Barclay Banks Harsh Sir

7/10

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

8/10

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.

8/6/2019 Barclay Banks Harsh Sir

9/10

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