CASE STUDY ON BARCLAY'S BANK

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PERFORMANCE AND EFFICIENCY OF UK's BANKING SECTOR WITH CASE STUDY ON BARCLAY'S BANK



Abstract

Bank performance measurement usually focuses on achieved performance and measures by a variety of financial ratios, e.g., return-on-asset, return-on-equity, or the ratio of fixed costs to total costs. However, some applications have used measures of performance that are based on the market value of the firm (which inherently incorporates market-priced risk). The paper produces a literature review and methodology. The paper presents Performance and efficiency of UK's banking sector with case study on Barclays bank. Overall the following project basically aims to cover the Performance in relation to organizational form, governance, regulation, and market discipline and uncovering evidence of scale economies by accounting for risk and capital structure.

Table of contents

Abstract2

Chapter I4

Introduction4

Research Background:6

Capital structure and Barclays Achieves Guaranteed Reliability and Performance with New Fixed-Income Solution7

Research Objectives:8

Research approach:9

Chapter II10

Literature review10

Performance in relation to organizational form, governance, regulation, and market discipline11

Measuring the performance of business and capital strategies16

Chapter III26

Research method26

Interviews26

Observations27

Data analysis27

The Barclays's open plan29

Having multiple channels35

Fast responsive customer service36

Chapter IV38

Discussion and reflection38

Critical success factors technique40

Background to e-banking and its success factors42

Strategic factors43

Operational factors44

Conclusion50

References52

Appendix61

PERFORMANCE AND EFFICIENCY OF UK's BANKING SECTOR WITH CASE STUDY ON BARCLAY'S BANK

Chapter I

Introduction

There are a large number of high street banks in the UK. They range from big companies like Barclays, HSBC Bank plc and Lloyds TSB to smaller banks, which include the Woolwich. Although each of the banks have similar products and services they have to compete with each other to remain profitable, for example they can do this by offering the most competitive, savings, investments, lending products and insurance. Most banks offer corporate banking, Small Business Banking and Personal Banking. We researched into the services that a typical high street bank offers by looking at a number of banks. (Southard & Siau 2004, 65-78)

Financial Highlights (In GBP as of 12/31/2008)

Total Revenue

54,101,000,000

Net Interest Income

16,675,000,000

Net Income

-22,137,000,000

Total Assets

2,101,652,000,000

Net Loans & Leases

1,011,919,000,000

Total Liabilities

2,121,154,000,000

Total Deposits

797,556,000,000

Stockholders' equity

80,498,000,000

The UK banking is a huge industry with nearly every adult in the UK holding account information found in a Mintel report shows that Mintel estimates that nearly 40 million adults have at least one personal current account and it is undoubtedly the widest held of all financial products. Anyone that is economically active will really need a current account, particularly given the increasing reliance on the electronic transmission of money via standing orders, direct debits and debit/credit cards. The current account market is a very mature one and new business opportunities are really limited to churn business, increased second account ownership and virgin business as a result of demographic changes. The fastest-growing age groups over the next two decades will be those aged 45-59 and 60-74. Both groups will increase by 44% on the 2001-25 period as the ageing of the general population continues to become more apparent. This would suggest that the use of direct channels for personal banking, traditionally favoured by younger to middle-aged consumers, will have finite growth ...