Barclays Bank Pestle and Swot Analysis 2017

Barclays Bank Porters Five Forces Analysis 2019

Introduction

Barclays is a British Bank with operations in more than 50 countries including the US, Japan, India, Europe and many African countries. It is part of the UK big four, referring to the four largest UK-based banking groups which also include HSBC, Lloyds and RBS. Founded in 1690 by James Barclay, Barclays has operations in a diverse set of consumer and wholesale businesses including retail, wealth management, corporate lending, credit cards and mortgages. It currently operates its business via two clearly defined divisions-Barclays UK and Barclays International.

Barclays Bank BCG Matrix analysis

Barclays Bank Stars

Barclays card UK has proved to be the Bank’s star maintaining its leadership position in UK card(BBC News 2018) with a market share of 27% as of 2017 (Proactive investors 2017). Barclays’ card generates large amounts of cash for the Bank because of its strong market shares.

Barclays Bank cash cows

Personal banking is the bank’s cash cow with a total income of £3,891million in 2016 and £3,823 million in 2017 while its consumer deposits grew from 139.3 to 141.1 in 2017 bringing in more cash to the Bank.

Barclays Bank question marks

Barclays investment bank has proved to be its problem child. Even with efforts, the banks performance has continued on a downturn leading the share holders to set a deadline for an improvement. A business that delivered approximately a third of the Bank’s profits in 2007 has since been on a decline(Cruise 2018), as of 2017, the business faced a decline of 8% in its total income from £10,533m in 2016 to £9,878m in 2017(Barclays PLC 2017). CIB (Corporate and Investment bank) delivered a return on tangible equity(ROTE) of 3.4% in 2017 but a fourth quarter minus of 20.2%(Cruise 2018).

Barclays Bank dogs

Barclays Africa Group is the company’s dog. Despite all investments, the group cost it only losses leading to the sell off of the subsidiary which resulted into more losses of approximately £2.5billion related to its sale (BBC News 2018).

References:

BarclaysPLC (2017) “Barclays PLC result announcement” Barclays PLC [Online] at https://www.home.barclays/content/dam/barclayspublic/docs/InvestorRelations/ResultAnnouncements/2017FYResults/20180222_Barclays_PLC_FY17_Results_Announcement.pdf

BBC News(2018) “Barclays takes £127 million hit from Carillon collapse” BBC News [Online] at https://www.bbc.com/news/business-43152466

Cruise Sinead (2018) “Barclays investors give CEO Staley a year to fix investment bank” Reuters [Online]at https://www.reuters.com/article/us-barclays-investmentbank/barclays-investors-give-ceo-staley-year-to-fix-investment-bank-idUSKCN1GQ2CG

 Dawkins, David (2018) “Bitcoin's blockchain and the challenges of Brexit: 'The opportunities are LIMITLESS' Express [Online] at nexis.com

Dunkley, Emma (2017) “UK challenger banks shy away from current accounts market” Financial Times [Online] at https://www.ft.com/content/ca1c26fa-81a6-11e7-94e2-c5b903247afd

 KPMG (2016) “2016 Banking Sector Briefing” [Online] at https://home.kpmg.com/content/dam/kpmg/pdf/2016/02/banking-the-customer-experience-dividend.pdf

Proactive Investors(2017) “Lloyds plays catch up with Barclays as it boosts shares of credit card market with MBNA take over” Proactive Investors [Online] at http://www.proactiveinvestors.co.uk/companies/news/178643/lloyds-plays-catch-up-with-barclays-as-it-boosts-share-of-credit-card-market-with-mbna-takeover-178643.html

Johnson et al (2008) “Exploring corporate strategy” 7th edition pg

 Statista (2017) “Banking and Finance: Statista Industry Report UK” Statista