Barclays Bank
Date
2023-11-14
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Publisher
Saudi Digital Library
Abstract
Barclays Bank is a renowned brand in the financial industry, having existed for more than 333
years. The organisation has a record of being the first to introduce ATMs. Barclays has operations in 30 countries in different continents of the world. The company has employed close to 90,000 people. In 2022, it registered a profit margin of $30.9 billion. The assets of the company amount to approximately $2 trillion. It is evident that the firm is a large bank in the industry and thus plays a significant role. In terms of market value, Barclays comes 4th after HSBC, Lloyds, and NatWest. However, it boasts of having the largest revenue in the UK. This work is an assessment of the company's financial performance. It is organised into five sections. These are introduction, sector evaluation, firm assessment, projections, valuation, and finally, conclusion and suggestions.
Description
In the UK and international markets, Barclays' main competitors are HSBC, Lloyds Bank, and NatWest. In Britain, Barclays has the biggest revenues. HSBC is above Barclays in almost all aspects of performance and value. Lloyds’ performance is extremely higher than its competitors regarding profitability ratios. Barclays does not use its resources efficiently to generate revenue and thus has the worst asset turnover among the 4 players. The company has the biggest debt-to-equity ratio, signalling that it is heavily leveraged. However, regardless of the metrics, Barclays is expected to continue thriving in the future. The company has managed to perform amidst the crisis. Its dividend and retained earnings policies have been very helpful. The same is true for diversifying into different products in the industry. Investors should buy the shares of Barclays. The DDM and DCF models both reveal that the stocks are undervalued. As world economies are recovering, equity holders in Barclays are set for high returns.
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Barclays Bank
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