Barclays

Barclays is a major British multinational universal bank, headquartered in London. It operates as two primary divisions: Barclays UK and Barclays International, offering services in retail banking, corporate banking, investment banking, and wealth management. With a significant presence in the United Kingdom and key global markets like the United States, the institution is a constituent of the FTSE 100 Index and maintains a secondary listing on the New York Stock Exchange.

History

The bank traces its origins to a goldsmith banking business established in 1690 by John Freame and Thomas Gould in the City of London. The name Barclays became associated after James Barclay, Freame's son-in-law, joined the partnership. A pivotal moment came in 1896 when twenty private banks, including those run by the Gurney family of Norwich, merged to form Barclay and Company, creating a formidable joint-stock bank. Major 20th-century expansions included the 1918 acquisition of the London, Provincial and South Western Bank and the 1969 merger with Martins Bank, solidifying its national branch network. Its international ambitions were marked by the 1986 acquisition of de Zoete & Bevan and Wedd Durlacher to form Barclays de Zoete Wedd, a leading investment bank. The bank navigated the 2007–2008 financial crisis without direct UK government capitalisation, instead raising funds from investors in Qatar and Abu Dhabi.

Operations

Barclays is structured into two main operating divisions. Barclays UK encompasses the retail banking operations in Britain, including current accounts, savings, and mortgages under the Barclays Bank UK PLC entity, as well as the Barclaycard credit card business. Barclays International houses the global corporate and investment bank, which provides advisory, financing, and risk management services, and the international consumer, cards, and payments business, with a significant presence in the United States through Barclays Bank Delaware. The investment bank, a key player on Wall Street, is a major force in fixed income, currency, and commodities trading, as well as equity and investment banking advisory. The group also operates private banking and wealth management services for high-net-worth clients globally.

Corporate affairs

The group's global headquarters is at 1 Churchill Place in Canary Wharf, London, having moved from its historic head office in the City of London. Governance is led by a board of directors, with Nigel Higgins serving as Chairman and C.S. Venkatakrishnan (known as Venkat) as Group Chief Executive. Major subsidiaries include Barclays Bank PLC, the ring-fenced Barclays Bank UK PLC, and Barclays Execution Services. The bank is a primary dealer for UK government bonds, known as gilt-edged securities, and is regulated by key bodies including the Prudential Regulation Authority and the Financial Conduct Authority in the United Kingdom, and the Federal Reserve in the United States.

Financial performance

As a publicly traded company, Barclays reports its financial results semi-annually. For the full year 2023, the group reported a total income of £25.4 billion, with a profit before tax of £6.6 billion. The investment bank division is typically the largest contributor to group revenue, though its performance can be volatile, influenced by market conditions and client activity in areas like trading and mergers and acquisitions. The Barclays UK division provides a more stable stream of income from net interest margin and fees. The bank's Common Equity Tier 1 capital ratio, a key measure of financial strength, stood at 13.8% at the end of 2023, above regulatory requirements set by the Bank of England.

Controversies

Barclays has been involved in several high-profile legal and regulatory issues. In 2012, it paid approximately £290 million in fines to UK and US authorities, including the Financial Services Authority and the Commodity Futures Trading Commission, for its role in manipulating the London Interbank Offered Rate (LIBOR). In 2015, its investment bank pleaded guilty to charges related to rigging the foreign exchange market, resulting in further substantial penalties. The bank has also faced significant scrutiny over its historical relationships, including allegations of facilitating money laundering and its past connections to the apartheid regime in South Africa. More recently, it was fined by the Securities and Exchange Commission in 2022 for procedural failures in its exchange-traded funds business.

Category:Barclays Category:Banks of the United Kingdom Category:Companies listed on the London Stock Exchange Category:Financial services companies established in 1690