BANKS AND E-BANKING

Banks and E-Banking

Banks and E-Banking

Introduction

Britain is in leading position since the seventeenth century to the importance of its banking system, and still remains one of the financial centers of London where, in fact, all commercial banks are represented prestige. With the exception of the Bank of England, the first British banks were privately owned. The bank failures were not uncommon, so that, in the early nineteenth century, the rise of bank equity was encouraged, because they were seen as a means of stabilizing the sector.

The UK banking sector finally focused around five major international corporations (HSBC, RBS, Lloyds TSB, Barclays) who were able to reorganize early, in favor of demutualization movement initiated in the mid 1980s. UK institutions are focused on outreach activities such as banking or retail lending to SMEs. Some have diversified depending on the model of universal banking (HSBC, Barclays). Foreign banks, including U.S. banks are also strongly present in the investment banking business or asset management. Major UK banks (HSBC, Barclays, and RBS) were other highly developed abroad including through acquisitions.

Barclays Bank

Barclays PLC is a global services company Financial based in London, which operates in Europe, United States, Middle East, Latin America, Australia, Asia and Africa. It is a holding company that is listed on the London Stock Exchange, the New York Stock Exchange and the Tokyo Stock Exchange. It operates through its subsidiary Barclays Bank PLC. Barclays PLC is ranked in 18th place among the world's largest companies according to the magazine Forbes (2007) and the fourth in size among financial services providers in the world, according to their social capital ($ 32,500 million). It is the third largest among those operating in the capital market of the United Kingdom.

Financial Performance Comparison of Barclays and RBS

Financial ratios of Barclays Bank for the period 2009-2011

2011

2010

2009

2008

2007

Return on Assets (%)

(0.12)

(0.07)

(0.01)

0.001

0.002

Return on Equity (%)

(2.77)

(0.47)

(0.47)

(0.3)

(0.21)

Net Interest Margin (%)

28.39

33.13

45.89

35.9

23.45

Loans to deposits

17.3

19.7

21.0

20.8

12.7

Total Debt to Equity

27.5

29.4

21.3

20.8

19.4

Total Asset Turnover

0.02

0.03

0.02

0.02

0.03

Property Plant & Equip Turnover

2.22

1.98

2.13

2.0

1.99

Cash & Equivalents Turnover

0.52

0.86

2.13

1.13

1.24

The above graph represents the return on assets of Barclays bank for the period 2007 to 2011. The return on assets for the year 2007 was 0.002 and it declined to 0.001 in the year 2008. The return on assets for the year 2009 was -0.01, which was greater than the ratio in the year 2008. The return on assets of Barclays bank was -0.07 in the year 2010 and it also declined to -0.12 in the year 2011. Therefore, the ratio of return on assets shows a decreasing trend over the period of five years which shows that the net income of the organisation is generating less income from its total assets. The return on assets was best for the year 2007, as they were the highest.

The above graph represents the return on equity of Barclays bank. In the year 2007, the return on equity was -0.21 and it increased to -0.3 in the year 2008. The ratio of return on equity decreased to -0.47 in the year 2009 and in the year ...