Barclays Bank
Date
2024-02-28
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Publisher
University of Surrey
Abstract
Barclays is a multinational company based in London, the UK. The British financial institution offers a range of services like retail, consumer credit card, wealth management, and corporate banking for small, medium, and large-scale businesses across the United Kingdom and the world. Barclays is a globally renowned brand. The company has been in operation for more than 300 years and has expanded its footprint into more than 30 countries.
Description
This project focuses on Barclays Bank, which is a multinational financial institution based in London. Barclays Bank PLC concentrates on international markets, while Barclays Bank UK PLC with the domestic market. This British financial institution offers services like retail, consumer credit card, wealth management, and corporate banking for small, medium, and large-scale businesses in the world. The global business is served by Barclays International. Some of the services are corporate and investment services, consumer credit and debit cards, and payments businesses.
The second section of this research focuses on sector review where we assess market forces that drive the demand, supply, and costs in the financial sector. The issues identified are competition, price, political and legal issues, and technology. These factors have both positive and negative effects on the demand and supply side of Barclays. Issues like the pandemic, the war in Ukraine, and a tough business environment have a significant impact on business. Barclays has leveraged its innovation to remain competitive in the financial sector.
The third section explores the profitability, liquidity, and efficiency of Barclays. We compare the company's performance with that of its peers: HSBC, Lloyd, and NatWest, over a period of five years starting from 2017. Barclays is profitable, efficient, and can pay its debts.
The fourth section entails forecasting the future performance of Barclays over the next five years. The subsequent part translates forecasts into valuation. The paper concentrates on the cost of equity, stable growth rate, absolute valuation models, discount dividend model, and discounted cash flow model. Both DDM and DCF analyses indicate that the company is undervalued.
Keywords
Barclays Bank