PROJECT REPORT ON INDIAN BANKING SECTOR AND BARCLAYS

Submitted to: Pranav Sir

Submitted by: Lalit Tiwari (DM10B19

Introduction of Banking Sector

Banks are the major financial intermediaries with a share of 64% of total financial assets. However, non-bank financial companies and development finance institutions are also emerging as alternative sources of funding. In India, foreign banks account for only around 8% of the total assets of the banking system. Further, domestic households are not allowed to place deposits abroad. Similarly, conditions for accessing overseas capital markets by domestic corporate have been stringent, in terms of size, maturity, pricing, etc. The impact of the entry of foreign banks on domestic banks is likely to depend on various factors such as the structure, strength and competitiveness of domestic banks, the share of foreign banks, and the regulatory/supervisory framework. While the entry of foreign banks could definitely improve the competitive environment, they are not likely to weaken domestic banks. With better technology and expertise in offering specialized banking products such as derivatives, advisory services, trade finance, etc, the entry of foreign banks can enhance healthy competition and has a positive spillover effect on the domestic banks. Entry of foreign banks Domestic banks account for 92% of total banking assets in India. Given the size of the country and the policy to ensure that foreign banks. market share does not exceed 15%, domestic banks are likely to dominate the banking markets. Behaviour of foreign banks The presence of foreign banks does not imply negligence of particular sectors of the economy. In India, foreign banks are required to comply with priority sector lending norms, where the commitments are lower than those applicable to domestic banks under a tailor-made structure suitable to them. The experience is that foreign banks adhere to the Reserve Bank prescriptions. Generally, however, due to their limited knowledge of the local industry and branch network, foreign banks are very conscious about their asset quality and a major shift in the share of foreign banks may result in neglect of the credit requirements of small and medium-sized businesses, whose development is crucial for emerging markets, but which are perceived as carrying relatively higher risks. Foreign banks constantly evaluate the political, economic and financial climate in financial markets and vary their investment/lending decisions. While the credit risk management processes and practices vary among banks, all internationally active banks have centralised policies and country and transfer risk monitoring, reporting and limiting mechanisms. In response to the Asian crisis and more recent events, banks in India are required to strengthen their country and transfer risk monitoring and analysis in an effort to identify incipient problems and to adjust exposures more promptly and systematically.

Competition from foreign banks

While entry of foreign banks is bound to affect the overall competitive situation in the market, much depends on the policy of the sovereign in regard to their entry/expansion, the existing share of domestic banks, etc. One of the main thrusts of the banking sector reforms in India has been to introduce more competition in the banking industry. With regard to mergers, only very few foreign banks operating in India have gone through the process of global mergers. The impact of megamergers taking place at the global level on the competitive position of the Indian banking system has been minor, in view of foreign banks. limited share in the financial system. At the same time, foreign banks have the potential, even without megamergers, to improve their market share, given their use of sophisticated technology and capability of introducing innovative products. The banking systems international isolation was also due to strict branch licensing controls on foreign banks already operating in the country as well as entry restrictions facing new foreign banks. A criterion of reciprocity is required for any Indian bank to open an office abroad.

Financial Structure
The Indian financial system comprises the following Institutions: 1. Commercial banks Public sector Private sector Foreign banks Cooperative institutions (i) Urban cooperative banks (ii) State cooperative banks (iii) Central cooperative bank 2. Financial institutions All-India financial institutions (AIFIs) State financial corporations (SFCs) State industrial development corporations (SIDCs) 3. Nonbanking financial companies (NBFCs) 4. Capital market intermediaries About 92 percent of the countrys banking segment is under State control while the balance comprises private sector and foreign banks. The public sector commercial banks are divided into three categories.

Current Indian Banking System Scenario

It is true that banks in India are facing difficulty in getting deposits. There are many reasons behind this problem. Two points for what was happening in banking and investment sector in the last 5 years

Increased consumerism: If we look at the consumption pattern in last 5 years, people were
moving from being savers to consumers, i.e., more emphasis on benefits gained today rather than gains received through savings in future, this changing attitude is one of the reasons for higher growth in lending compared to deposits.

Alternatives and risks: People were looking for more alternatives like mutual funds, different
insurance schemes, stock market, etc. People were moving to these products with higher return expectations. These instruments also have higher risk and increased income level people who deposit high amounts of money into banks were ready to take these high-risk alternatives. But now the situation will be slightly better for banking system in India because investors are losing a lot of wealth in stock markets and mutual funds. People will realize the importance of safer investment vehicle and will start diversifying their portfolio with increased exposure to safer instruments like bank deposits.

Long-Term Sources:
Tier one and Tier two Capital in the form of equity/subordinate debts/debentures/preference shares. Internal accrual generated out of profits. Long-term fixed deposits generated from public and corporate clients, financial institutions, and mutual funds, etc. Long-term borrowings from financial institutions like NABARD/SIDBI.

Short-Term Sources:
Call money market, i.e., funds generated among inter-banking transactions where there is online trading of money between bankers. Fixed deposits generated from public and corporate clients, FIs, and MFs, etc. Market-linked borrowings from RBI. Sale of liquid certificate deposits in the open market. Borrowing from RBI under Repo (Repurchase option). Short and medium-term fixed deposits generated from public and corporate clients, mutual funds, and financial institutions, etc. Floating in current and saving accounts. Short-term borrowings from FIs by way of rated papers placed, etc.

INDUSTRY OVERVIEW
(a) Porter's 5 Forces Analysis
Threat of New Entrants - The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include: Existing loyalty to major brands Incentives for using a particular buyer (such as frequent shopper programs) High fixed costs Scarcity of resources High costs of switching companies Government restrictions or legislation

The banking industry is highly competitive. The financial services industry has been around for hundreds of years and just about everyone who needs banking services already has them. Because of this, banks must attempt to lure clients away from competitor banks. They do this by offering lower financing, preferred rates and investment services. The banking sector is in a race to see who can offer both the best and fastest services.

Threat of New Entrants: Low

Porter's 5 Forces

Power of Suppliers - This is how much pressure suppliers can place on a business. If one supplier has a large enough impact to affect a company's margins and volumes, then it holds substantial power. Here are a few reasons that suppliers might have power:

There are very few suppliers of a particular product There are no substitutes Switching to another (competitive) product is very costly The product is extremely important to buyers - can't do without it The supplying industry has a higher profitability than the buying industry

Supplier Power: Low

The suppliers of capital do not pose a big threat, but the threat of suppliers taking away the human resource. If a talented individual is working in a smaller regional bank, there is the chance that person will be enticed away by bigger banks, investment firms, etc.

Power of Buyers - This is how much pressure customers can place on a business. If one
customer has a large enough impact to affect a company's margins and volumes, then the customer hold substantial power. Here are a few reasons that customers might have power: Small number of buyers Purchases large volumes Switching to another (competitive) product is simple The product is not extremely important to buyers; they can do without the product for a period of time Customers are price sensitive

Buyer Power: High

With the emergence of larger number of players in the Banking Industry, the switching cost of the buyer has gone done significantly. The onus is now on the effectiveness and speed with which the services are provided to the customers. Financial institutions by offering better exchange rates, more services, and exposure to foreign capital markets -work extremely hard to get high-margin corporate clients. Options in the Auto Finance Sector also give the customers more power to decide upon the kind of financing. Introduction of specialized products for Women and Students etc also show that the buyer power is high in this Industry. Availability of Substitutes - What is the likelihood that someone will switch to a competitive product or service? If the cost of switching is low, then this poses a serious threat. Here are a few factors that can affect the threat of substitutes:

Starting a bank in a country like India is not as easy as any other industry, but if a new bank is started that is mainly targeted on Niche Segments might pose a threat to ICICI. Entry of foreign players and grant of new licenses by RBI, Threat from other non banking financial services could also pose a threat especially equity investment, insurance etc.

Threat from substitutes: low

The main issue is the similarity of substitutes. For example, if the price of coffee rises substantially, a coffee drinker may switch over to a beverage like tea. If substitutes are similar, it can be viewed in the same light as a new entrant.

Competitive Rivalry - This describes the intensity of competition between existing firms in an industry. Highly competitive industries generally earn low returns because the cost of competition is high. A highly competitive market might result from: Many players of about the same size; there is no dominant firm Little differentiation between competitors products and services A mature industry with very little growth; companies can only grow by stealing customers away from competitors Competitive Rivalry: High

Top Performing Public Sector Banks a. SBI b. Punjab national bank Top Performing Private Sector Banks a. HDFC Bank b. AXIS Bank Top Performing Foreign Banks a. Citibank b. Standard Chartered c. HSBC Bank

(b) Composition of Indian Banking System

India had a fairly well developed commercial banking system in existence at the time of independence in 1947. The Reserve Bank of India (RBI) was established in 1935. While the RBI became a state owned institution from January 1, 1949, The Banking Regulation Act was enacted in 1949 providing a framework for regulation and supervision of commercial banking activity. There was a feeling that though the Indian banking system had made considerable progress in the 50s and 60s, it established close links between commercial and industry houses, resulting in cornering of bank credit by these segments to the exclusion of agriculture and small industries. To meet these concerns, in 1967, the Government introduced the concept of social control in the banking industry. The close link between big business houses and big banks was intended to be snapped or at least made ineffective by the reconstitution of the Board of Directors to the effect that 51 per cent of the directors were to have special knowledge or practical experience. Appointment of whole-time Chairman with special knowledge and practical experience of working of commercial banks or financial or economic or business administration was intended to professionalize the top management. Imposition of restrictions on loans to be granted to the directors concerns was another step towards avoiding undesirable flow of credit to the units in which the directors were interested. Development Financial Institution From the fifties a number of exclusively state-owned development financial institutions (DFIs) were also set up both at the national and state level, with a lone exception of Industrial Credit and Investment Corporation (ICICI) which had a minority private share holding. The mutual fund activity was also a virtual monopoly of Government owned institution, viz., the Unit Trust of India. Refinance institutions in agriculture and industry sectors were also developed, similar in nature to the DFIs. Insurance, both Life and General, also became state monopolies.

Structure of the banking industry

According to the RBI definition, commercial banks which conduct the business of banking in India and which (a) have paid up capital and reserves of an aggregate real and exchangeable value of not less than Rs 0.5 mn and (b) satisfy the RBI that their affairs are not being conducted in a manner detrimental to the interest of their depositors, are eligible for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934, and when included are known as Scheduled Commercial Banks. Scheduled Commercial Banks in India are categorized in five different groups according to their ownership and/or nature of operation. These bank groups are (i) (ii) (iii) (iv) (v) State Bank of India and its associates, (ii) Nationalised Banks, (iii) Regional Rural Banks, Foreign Banks Other Indian Scheduled Commercial Banks (in the private sector).

All Scheduled Banks comprise Schedule Commercial and Scheduled Co-operative Banks. Scheduled Cooperative banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks.

Leading Indian Banks by Assets and Market Capitalization

Bank Majority Shareholding Asset Size(in $ Billions) 314 81 66 66 61 59 52 49 43 40 Market capitalization (in $ Billions) 36.6 25.6 7.6 5.3 5.1 5.5 2.9 22.2 3.7 11.6 Listed stock exchange Mumbai,London Mumbai, New York Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai, London

State Bank of India ICICI Bank Punjab National Bank Bank of Baroda Government Bank of India Canara Bank IDBI Bank HDFC Bank Union Bank of India Axis Bank

Government Private Government Government Government Government Government Private Government Private

Market capitalization data based on full capitalization as on March 18, 2011 Bank Assets as on March 31, 2010; Source: Indian Banks Association

Market share

Market share According to deposits

3.7, 3% 11.6, 9% State Bank of India ICICI Bank 36.6, 29% 22.2, 18% Punjab National Bank Bank of Baroda Government Bank of India Canara Bank IDBI Bank 2.9, 2% 5.5, 5% 5.1, 4% 5.3, 4% 7.6, 6% 25.6, 20% HDFC Bank Union Bank of India Axis Bank

Growth drivers:
Industrial development is fueling rapid economics growth giving sector a major boost. Retail demand: increase in demand for housing, car and personal loans Infrastructure: Infrastructure one of the biggest growth drivers is expected to grow @ 35% - 3 year. Telecom spectrum lending: 3G and broadband spectrum auction have increased credit demand Rural penetration: rural penetration by private banks is increasing Export Imports: increase in export import enhances inland and outland bills business Consolidation and expansions: Acquisition, merger and expansion by the industries is very much prevalent since 2009.

Consolidated Balance Sheet of Scheduled Commercial Banks (In` crore) As at end-March 2010

Public sector Banks

Private sector banks

Old private New private sector banks sector banks

Foreign banks

All schedule commercial banks

1. Capital 2. Reserves and Surplus 3. Deposits 3.1. Demand Deposits 3.2. Savings Bank Deposits 3.3. Term Deposits 4. Borrowings 5. Other Liabilities and Provisions Total Liabilities/Assets 1. Cash and Balances with RBI 2. Balances with Banks and Money at Call and Short Notice 3. Investments 3.1 Government Securities (a+b) a) In India b) Outside India 3.2 Other Approved Securities 3.3 Non-Approved Securities 4. Loans and Advances 4.1 Bills purchased and Discounted 4.2 Cash Credits, Overdrafts, etc. 4.3 Term Loans 5. Fixed Assets 6. Other Assets

13,544 2,27,458 36,91,802 3,68,528 8,87,267 24,36,006 3,13,814 1,94,497 44,41,114 2,70,858

4,549 1,15,435 8,22,801 1,34,58 1,86,220 5,01,992 1,48,803 59,221 11,50,809 75,858

1,273 18,898 2,29,897 21,597 43,567 1,64,733 8,127 10,783 2,68,977 16,915

3,276 96,53 5,92,904 1,12,992 1,42,653 3,37,259 1,40,676 48,438 8,81,831 58,943

30,555 38,584 2,37,853 67,902 36,427 1,33,524 62,146 64,080 4,33,219 19,097

48,648 3,81,476 47,52,456 5,71,019 11,09,915 30,71,522 5,24,764 3,17,798 60,25,141 3,65,812

1,24,216 12,05,783 10,08,371 10,00,015 8,356 5,015 1,92,396 27,01,300

38,681 3,54,117 2,41,192 2,41,028 165 311 1,12,614 6,32,494

5,692 83,499 60,819 60,819 289 22,391 1,54,136

32,989 2,70,618

20,559 1,59,286

1,83,455 17,19,185 13,67,055 13,58,534 8,521 5,330 3,46,800 34,97,054

1,80,374 1,17,492 1,80,209 165 21 90,223 1,17,492 4 41,790

4,78,358 1,63,260

1,40,817 10,74,500 14,85,984 34,466 1,04,491

27,462 1,58,71 4,46,3 10,239 39,421

8,957 68,119 77,060 2,357 6,378

18,505 90,600 7,882 33,043

21,306 65,923 4,859 66,158

1,89,585 12,99,141 20,08,328 49,564 2,10,070

3,69,252 76,03 1

These include 27 public sector banks (State Bank of India and its six associates, 19 nationalized banks and IDBI Bank Ltd.), 7 new private sector banks,15 old private sector banks and 32 foreign banks.

Trends in Income and Expenditure of Scheduled Commercial Banks

Item
Amount

2008-09
Percentage variation Amount variation

2009-10
Percentage

1. Income a) Interest Income b) Other Income 2. Expenditure a) Interest Expended b) Operating Expenses of which : Wage Bill c) Provision and Contingencies 3. Operating Profit 4. Net Profit for the year 5. Net Interest Income(1a-2a)

463702 388482 75220 410952 263223 89581 47974 58,148

25.7 25.9 24.6 26.0 26.5 15. 20.1 42.3

494271 415752 78519 437162 272084 9 99769 55164 65,310

6.6 7.0 4.4 6.4 3.4 11.4 15.0 12.3

110897 52750 1,25,258

32.7 23.5 24.7

122419 57109 1,43,669

10.4 8.3 14.7

(Amount in ` crore) Source: Profit and loss statements of respective banks.

Barclays
Barclays PLC (LSE: BARC, NYSE: BCS) is a global banking and financial services company headquartered in London, United Kingdom. As of 2010 it was the world's 10th-largest banking and financial services group and 21st-largest company according to a composite measure by Forbes magazine. It has operations in over 50 countries and territories across Africa, Asia, Europe, North America and South America and around 48 million customers. As of 30 June 2010 it had total assets of 1.94 trillion, the third-largest of any bank worldwide (after BNP Paribas and HSBC). Barclays is a universal bank and is organized within two business 'clusters': Corporate & Investment Banking and Wealth Management, and Global Retail Banking. The Corporate & Investment Banking and Wealth Management cluster comprises three business units: Barclays Capital (investment banking), Barclays Corporate (commercial banking) and Barclays Wealth (wealth management). The Global Retail Banking cluster comprises four business units: Barclaycard (credit card and loan provision), Barclays Africa, UK Retail Banking and Western Europe Retail Banking.
Organizational structure:

Barclays is headed by Marcus Agius, the Group Chairman, who joined the Board on 1 September 2006 and succeeded Matthew Barrett as Chairman from 1 January 2007. Agius is also the senior executive Director of the BBC and was formerly Chairman of BAA PLC, Chairman of Lazard in London and a Deputy Chairman of Lazard LLC until 31 December 2006. Reporting directly to the Group Chairman is Robert Diamond, the Group Chief Executive, who is responsible for the strategic direction and planning of all Barclays operations. Varley was appointed to the role in September 2004 prior to which he served as Deputy Chief Executive (JanuarySeptember 2004) and Group Finance Director (20002003). In November 2009, John Varley realigned Barclays' businesses into Global Retail Banking and Corporate and Investment Banking and Wealth Management. Global Retail Banking comprises UK Retail Banking, Barclaycard, the retail operations in Western Europe and Emerging Markets businesses, and retail operations and technology. Corporate and Investment Banking and Wealth Management comprise Barclays Capital, Barclays Commercial Bank and Barclays Wealth. This resulted in certain changes to the leadership team and an expansion of the Group Executive Committee (ExCo).

Barclays Group Profile

Type Traded as Industry Founded

Public limited company LSE: BARC NYSE: BCS Banking Financial services 1690 One Churchill Place, Canary Wharf, London, United Kingdom Worldwide Marcus Agius

Headquarters

Area served

Key people

(Group Chairman)

Robert Diamond
(Group Chief Executive)

Retail banking Commercial banking Products Investment banking Investment management Private Equity Revenue Operating income Net income Employees Subsidiaries 31.440 billion (2010) 6.065 billion (2010) 6.1 billion (2011) Approximately 145,000 (2011) Barclays Bank PLC

Barclays PLC Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves,lends, invests and protects money for over 49 million customers and clients worldwide.

Barclays in India
Barclays Corporate India is led by Karan Bhagat, Country Head and Managing Director and services the needs of over 400,000 clients and customers across the country. Barclays opened its doors to commercial customers in November 2006 and today has a roster of over 2000 clients. Barclays Corporate, India is focused on servicing the needs of large Indian corporate, the corporate in the SME sector, and Indian companies looking to grow overseas. Barclays offers its clients a broad spectrum of services including loans, deposits, payments & cash management services, trade finance and treasury solutions. The consumer banking division, launched in May 2007, offers primarily mass affluent customers a growing suite of products and services. These include arguably the best Premier services offering in the country, with products ranging from secured and unsecured lending to cash management investment products and insurance. Barclays Corporate also offers Hello Money, a revolutionary mobile banking service that combines technology and convenience. Barclays Corporate currently has a network of over 50 distribution points through its network of branches and Barclays Finance outlets across the country. Barclays Finance was launched in March 2008, as a non banking finance company, to bolster the Barclays Corporate footprint in the country. Investing in the community is an important part of Barclays sustainability strategy. Globally, Barclays has focused efforts on financial inclusion, entrepreneurship, education, enterprise and helping people into employment.

Promoters and shareholding pattern:

Barclays Bank PLC is a public limited company registered in England and Wales under number 1026167. The Bank was incorporated on 7th August 1925 under the Colonial Bank Act 1925 and on 4th October 1971 was registered as a company limited by shares under the Companies Acts 1948 to 1967. Pursuant to The Barclays Bank Act 1984, on 1st January 1985 the Bank was reregistered as a public limited company and its name was changed from Barclays Bank International Limited to Barclays Bank PLC. All of the issued ordinary share capital of Barclays Bank PLC is owned by Barclays PLC
1. Barclays PLC (the "Company") was notified on 14 September 2010 that, on 10 September 2010, following the reinvestment of the interim dividend for the year ended 31 December 2010, the following Directors/Persons Discharging Managerial Responsibilities ("PDMR") had received ordinary shares in the Company as follows at a price of 324.20p per share: Director/PDMR M Agius T Kalaris No. of shares received 352 9,882

2. The trustee of the Barclays Group Sharepurchase Plan ("Sharepurchase"), an HM Revenue and Customs approved all employee share plan, informed the Company on 14 September 2010 that, on 10 September 2010 it had acquired, and now held as bare trustee of Sharepurchase, the following ordinary shares in the Company, following the reinvestment of the interim dividend for the year ended 31 December 2010, for the following Directors/PDMRs at a price of 317.46p per share: Director/PDMR J Varley C Lucas M Harding C Turner No. of shares received 13 7 3 16

3. The Company was notified on 14 September 2010 by the Administrators of the Dividend

Reinvestment Plan (the "Plan") that on 10 September 2010, following the re-investment of the interim dividend for the year ended 31 December 2010, the following Directors/PDMRs (or their connected persons) had received ordinary shares in the Company under the Plan at a price of 320.99p per share. The number of shares received is as follows: Director/PDMR R Broadbent C Lucas M Harding A Jenkins C Turner No. of shares received 45 311 5 41 338

4. The independent nominee of the Barclays ESAS Nominee Arrangement notified the Company on 14 September 2010 that it had on 10 September 2010 exercised its discretion and re-invested the interim dividend for the year end 31 December 2010 in ordinary shares of the Company at a price of 320.90p per share for the following Directors/PDMRs. The number of shares received is as follows: Director/PDMR J Varley R E Diamond Jr J Del Missier M Harding T Kalaris A Jenkins R Le Blanc No. of shares received 370 4,718 2,937 77 1,619 181 460

R Ricci C Turner

735 61

5. The independent nominee of the Barclays Corporate Nominee Arrangement notified the Company on 14 September 2010 that it had on 10 September 2010 exercised its discretion and re-invested the interim dividend for the year ended 31 December 2010 in ordinary shares of the Company at a price of 320.90p per share for the following Directors/PDMRs. The number of shares received is as follows: Director/PDMR J Varley C Lucas R Le Blanc C Turner No. of shares received 514 260 32 255

The revised total shareholding for each Director following these transactions is as follows: Director M Agius R Broadbent R E Diamond Jr C Lucas J Varley Beneficial Holding 114,716 38,724 9,541,989 187,796 980,422 Non-Beneficial Holding -

HOLDER

SHARES

% OUT

VALUE*

REPORTED

DIMENSIONAL FUND ADVISORS LP PRICE (T.ROWE) ASSOCIATES INC SCOUT INVESTMENTS, INC. ROBECO INVESTMENT MANAGEMENT, INC. MANAGED ACCOUNT ADVISORS, LLC BRANDES INVESTMENT PARTNERS L.P. ALLIANZ GLOBAL INVESTORS OF AMERICA L.P. JP MORGAN CHASE & COMPANY FIRST TRUST ADVISORS LP NORTHERN TRUST CORPORATION

7,621,859 6,909,639 5,302,091 3,111,753 3,077,940 2,703,857 2,292,023 2,045,483 1,579,013 1,496,621

0.25 0.23 0.17 0.10 0.10 0.09 0.08 0.07 0.05 0.05

125,227,143 113,525,368 87,113,355 51,126,101 50,570,554 44,424,370 37,657,937 33,607,285 25,943,183 24,589,483

JUN 30, 2011 JUN 30, 2011 JUN 30, 2011 JUN 30, 2011 JUN 30, 2011 JUN 30, 2011 JUN 30, 2011 JUN 30, 2011 JUN 30, 2011 JUN 30, 2011

Products and services

Barclays is a global financial services provider, engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services all over the world.

Personal and premier banking

From basic accounts in developing markets to financial expertise in high street branches, Barclays services include credit cards, insurance, loans, mortgages and more.

Online Banking Personal Banking Premier Banking

Barclaycard

Corporate and business banking

Barclays supports businesses all over the world with services to suit their location, ambitions, challenges and scale, from local enterprises to multinational corporations. Business banking Barclays Corporate

Wealth management
Barclays Wealth focuses on private and intermediary clients worldwide, providing international and private banking, investment management, fiduciary services, and brokerage.

Barclays Wealth Offshore banking and investments Services for clients moving to or working in the UK

History 2011 Barclays agrees to acquire Eggs UK credit card assets, consisting of approximately 1.15 million credit card accounts with approximately 2.3bn of gross receivables. Barclays announces its 2010 Full Year Results, reporting profit before tax of 6.1bn. Barclays acquires Standard Life Bank. Barclays completes its acquisition of PT Akita, a privately owned bank with ten outlets in three cities in Indonesia. The move makes Indonesia the 15th country to become part of Barclays Global Retail and Commercial Banking Emerging Markets Business Unit. Barclays acquires Lehman Brothers North American investment banking and capital markets businesses.

2011 2010

2009

2008

2008

Barclays acquires leading Russian bank Expobank. The bank becomes part of Barclays Global Retail and Commercial Banking Emerging Markets Business Unit . Barclays purchases wealth management firm Gerrard Management Services Ltd, to become the UKs largest private client investment manager. Banco Zaragozano, one of the largest private banks in Spain, is acquired, making Barclays the countrys sixth largest bank. Barclays partners with five international banks to launch the first ever global ATM alliance, providing over 40 million customers with free access to member banks ATMS. Barclays acquires Woolwich, a leading mortgage bank and former building society. Barclays opens its first branch in India. Barclays UK and Barclays International are merged to form Barclays PLC. Barclays Bank Ltd becomes Barclays Bank PLC. A Barclays Representative Office opens in Beijing, China. Barclays is the first foreign bank to file with the Securities and Exchange Commission in Washington DC, USA. The Union Bank of Manchester is absorbed by Barclays. Barclays Bank (Dominion Colonial and Overseas - DCO) is established by the merger of the Colonial Bank, the Anglo Egyptian Bank and the National Bank of South Africa. This goes on to add businesses across Africa, the Middle East and the West Indies. Barclays Bank (Overseas) is incorporated. The name later changes to Barclays Bank (France). The business amalgamates with the London Provincial and South Western Bank to become one of the UKs big five banks.

2003

2003

2001

2000 1989 1985 1982 1981

1981

1940

1925

1922

1918

1917 1916 1902

Barclay & Company Limited becomes Barclays Bank Limited. The organization takes over the United Counties Bank in the Midlands. The business obtains a listing on the London Stock Exchange. The company joins 19 other private banking businesses to form Barclay & Company Limited, with 182 branches and deposits of 26m. John Freame and Thomas Gould start trading as goldsmith bankers in Lombard Street, in the City of London.

1896

1690

Strategy and business model

Customer and client focus
Our customers and clients are at the centre of our strategy and business model. Putting their needs first is essential to developing a long-term sustainable business. Geographic spread We aim to meet the needs of our clients and build a business with diverse revenue sources, business segments, customer and clients and geographic exposure. Product breadth The most successful banks are those that serve their clients across all their needs though a wide range of distribution channels. Risk management

Effective risk management underpins all the commercial decisions we take. As a global universal bank we are well placed to understand the risks our clients take because of the breadth and depth of the relationships we have with them. Financial discipline As we look to execute our strategy and build the business, it is essential to ensure that we retain financial discipline required to deliver returns.

How barclays manage its performance While business model and strategy determine the shape and direction of Barclays, performance is managed against a specific set of key performance indicators (KPIs). These KPIs are closely aligned to our execution priorities in order to deliver on our goal of generating top quartile shareholder returns over time.

Barclays also adopted multiple business model like other banks. It also adopted B2B B2C C2C.