Strength

1. Strong presence in the global market: Barclays PLC has a strong presence as it is globally recognized as a player capable of dominating the market evident by the figures mentioned in its statements. Its financial center in New York has strengthened its global reach. The diversified product portfolio & global contact centers have helped in leveraging growth opportunities in international markets by improving customer support as reflected in the 5% increase in credit to 1,629 million euros in 2017. It has increased its banking fee share in Corporate and Investment Banks and Consumer, Cards and Payments business which will benefit it through increase in income. Net fee, commission and other income from international operations grew by 3% to 6,104 million euros and net interest margin increased to 4.16% in 2017 Barclays PLC currently has operations in over 50 countries, hence strengthening its position as leading global player.

2. Diverse portfolio of businesses: Barclays PLC has its businesses in many domains and the business structure includes Personal Banking, UK Cards, Wealth, Entrepreneurs & Business Banking (Barclays UK) ;Corporate & Investment Bank, Consumer, Cards & Payments, Barclaycard & Wealth International (Barclays International).The group offers its services to individuals, small and medium-sized businesses, large corporates and multinational companies, financial institutions and banks, institutional investors, funds, sovereign institutions and governments. They also offer innovative digital and technological capabilities, funding for purchases and growth and financial and business support risk management, business management services. It will also help in efficiency delivery of cross-group synergies. This generates long term sustainable returns as seen by Return on average allocated tangible equity which grew from 9.6% in 2016 to 9.8% in 2017.

3. Brand visibility: Barclays has also worked on strengthening its brand visibility. Due to various charity events and sponsorship deals (the most important being the sponsorship of one of the most famous sports league in the world, English Premier League), the brand recognition and visibility has increased bounds and leaps over time. The skills and expertise in delivering superior services to the clients have established trust. The brand has made a reputation for safe investment & cash management which had supported its strong, well-funded and diversified balance sheet.

4. Constant Innovations to adapt to changing business environment: Innovation in products and services aids cost efficiency, access to finance and generates dividends for investors and returns to the group as more customers’ needs for on-the-go services and mobility are tapped. It developed a new ‘contactless cash’ withdrawal option in its ATMs in 2017 to increase its digital footprint. They have extended their cheque imaging pilot program to other banks which will allow more than 243,000 customers to pay in cheques instantly irrespective of their location. Their Insurance Instant Price service will provide instant price quotes to nearly 1 million customers. This has increased its consumer base to 24 million customers. The group is leveraging its data to tap on more consumer needs. It contributed to group’s total financing volumes which grew by 4% in 2017.

Weakness

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Opportunity

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Threat

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Political

1. Government Regulations and Policies: The banking industry is heavily regulated as per the government regulations in the country where the firms are operating. Since, Barclays has its operations in many countries, it has to work in accordance with the government policies, and otherwise it won’t be able to conduct its business effectively. UK government’s Ring fencing order will improve the financial system as retail and smaller corporate banking activity and products are separated from certain activities outside of the UK and European Economic Area which will facilitate faster recovery and resolution plans. So, Barclays Bank UK PLC and Barclays Bank PLC will operate independently and enhance operational continuity with better client focus. The trade tariffs can affect the capital inflows in US and negatively affect US firms which in turn could increase impairment of Barclays US operations.

2. Political Instability: The political stability of a country is always beneficial as the banking industry can focus on improving their sustainability. Political upheaval in the country will leave the banking industry speculating on the uncertainties and on how to deal with the situation at hand. The most important development in this regard is the Brexit vote of 2016 which has made way for Britain to leave EU. This will majorly change the political landscape of UK and consequently affect Barclays’s operation in UK and Europe as the euro rates trading desk is split and shifted from London. The uncertainty in the regulatory framework can continue till 2019 which can cause compliance issues.
It will shift its euro rates trading team to ensure swift clearance of the assets and securities that are traded between London and other EU countries.

Economic

1. Impact of Macroeconomic parameters: Economic growth followed by low volatility and low interest rate environment increase valuations and hence, credibility of the group. However, currency depreciation (sterling depreciation in 2017), high rate of unemployment, low disposable income of the consumers reduces the borrowing capacity and credit worthiness of borrowers and increase stressed assets. The low unemployment rate in US, growth in GDP and low interest rates have supported strong credit card portfolio and corporate and investment banking exposures in the US. Brexit uncertainty can affect the credit market which may lower client activity, increase delinquencies, write-offs, and impairment charges and negatively affect future prospects.

Social

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Technological

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Legal

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Environmental

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