Barclays PLC Case Analysis
Barclays’ core strategies:
* Improve service for both retail and commercial customers * International growth: Barclays avoided taking capital and other support from the U.K. government, preferring to establish relationships with international investors in the Middle East and Asia. * Focus on maintaining a sound financial and organizational structure that anticipates and adapts to new regulatory changes.
Barclays SWOT analysis:
* Strong Brand Name: Barclays’ strong brand name helps to increase margins by charging premium prices for goods. Customers always perceive a higher standard of quality from companies with strong brand name. * Growing ROE: For the first six months of 2011, Barclays reported adjusted ROE of 9.1% , 32% increase if compare with their full-year 2010 ROE of 6.9%. * Geographically diverse business: Barclays plc generated 40% of total group income from its U.K. operations in 2010, 15% from other European Union, 15% from Africa, 25% from the Americas, and 5% from Asia. * Diverse business: Barclays operates in nine segments: UK Retail Banking, Barclaycard, Western Europe Retail Banking, Barclays Africa, Absa, Barclays Capital, Barclays Corporate, Barclays Wealth and Investment Management. And it has diverse business products such as mortgages, personal loans, credit cards, overdrafts, SME, insurance, deposits, funding and others.
* Highly levered: Barclays has a debt to equity ratio of 1605% currently, even thought part of Barclays’ assets are stored outside of European, this highly levered bank is still at a high risk of not being able to afford their interest payments during this European debt crisis. * Bad stock performance: Barclays stock has decreased over 40% over the past couple of months due to the European Debt Crisis. Date
| Stock Price (close)
May, 02, 2011
Sep, 02, 2011
* Potential growth in...
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