Barclays Bank is known to be a global bank with a widespread network in 50 countries. Barclays boasts of serving and looking after more than 48 million customers worldwide. With grim economic scene, Barclays too has registered a drop in its profits by 14% and is likely to be much more alert and attentive to the world economic scenario.
Nevertheless, Barclays is still safe enough and has not yet opted for government aid…making it more watched than ever. As it has sought private financial aids, Barclays clearly moves ahead of RBS and Lloyds and will do all it can to strengthen its stand and position in the global economy and finance market.
A great hue and cry is being heard over the bonus payments shelled out to the bank employees. Barclays being the only bank which has announced bonus payments at half rates above the rest makes its actions and working being under constant purview by one and all.
BarCap,no doubt performed well at the start of year but the bank is expecting and gone ahead in forecasting a grim performance in 2009. The tight money situation and the decline in borrowing pattern of borrowers makes things difficult for the bank to attract investors.
As the volume of bad debts and write offs increases, the profits are bound to decline thus, it comes as no surprise when Bar Cap’s profit registers a downfall of 44 percent and BGI’s profit registers a 19% downfall. These figures clearly talk of slowing down in the industrial activity and the uncertain economic scenes. Similarly figures of commercial bank profits have reduced by 7% tell the same story while retail banking division has performed pretty well stating increase in profits at 7%.
The volatile share market, profits and its edgy performance does not only make investors wary but also back tracks them in borrowing funds. Not only this, investors are doubly on guard after the collapse of Lehman Brothers, Royal Bank of Scotland and Llyods group seeking government bailout. A slight tremor or a rumour in the financial market creates so much hype and nervousness in the market which deters the ongoing and the future market activities.
Constant monitoring of its performing areas and timely strategies will be the need of the hour. It needs to be alert enough to expect the unexpected and at the same time play safe in order to perform well in the coming few years.
