Financial and Market Performance of Barclays and Lloyds Banks

This report analyzes the financial and market performance of Barclays and Lloyds banks, including their income statements and balance sheets. It also discusses the staff, shareholders, customers, and other key stakeholders of both banks, as well as corporate governance issues.

Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Financial and market performance.........................................................................................2
Staff, shareholders, customers and other key stakeholders....................................................7
Corporate governance issue....................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The banking sectors of United Kingdom are well flourished with the positive economic
environmental factors. These factors influences certain banking companies to grow within the n
national as well as international markets. A bank is the financial institution that earns income by
perusing the transactions of others. By lending money to the needful candidates on specific
interest rates and also by collecting money from the account holders in the respective banks and
using the particular amount as a resource to operate its functions and earn more revenue. The
two names in the banking industry of United Kingdoms are evolving at a rapid rate of growth
and success, through recent course of time these two organisation become the top level banking
companies.
. Barclays and Lloyd bank are the names that are well recognised in the bank sector of UK.
Thus the analysis in this project is total based on the dimensions of whole working
process and functions of these two banks. With such fast rate of growth these banks also stepped
in the influential competitive fields of UK. Some of the major competitors of Barclays are JP
Morgan Chase, Credit Suisse , RBS, Goldman Sachs, BNP Paribas, Wells Fargo and Morgan
Stanley. While the top competitive forces of Lloyd bank are HSBC, One Savings Bank, Royal
Bank of Scotland and Nationwide Building Society. With such a bulky list of competition the
customer range of both the institutions are also diversified. The effective share of customers does
promotes the revenue of bank. Lloyd s staving account holders are approximate in between 21
million while the current account personnel strength is somewhere between 22 million Whereas
the other bank Barclays has a total number of 24 million clients world wide. The report here is
comprised of the major aspects of both the PLC s such as the financial and marketing
performances and staffs and stakeholder conditions along with that a brief discussion about the
governing policies in regard to the banks is also performed (Castillo and et.al., 2017) Data
analysis helped identify specific aspects related to big data deployment, data gathering methods,
required competences and data sharing approaches.
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MAIN BODY
Financial and market performance
The financial performance of any firm is justified by its statements for the previous
business year. Thus the income statement and balance sheet of Barclays bank is given here and
its data is evaluated to study the financial performance .
Barclays :
Financial statement
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Illustration 1: Financial statement of Barclays

Barclays UK income is more stable within the national as well as global boundaries of
financial operations, as the ongoing
pressure on marginal activities is increased and the risk
was reduced. The financial statement of Barclays determining a growth of International income
that is increase by 5%, in 2019. As the profit before tax was reflected by the amount of £ 6,206
that was having a difference of £m 4,194. this difference is considered as the profit for the year
2019, and cost income ratio was generated at the rate of 63%.The generic tax rate was 23.0% in
the year of 2019 while the tax rate of previous year 2018 was about 26.1%. Thus the rate of
restraint deduction is fall down by the rate approx at 2.9 %. This can also be undertaken as the
leverage for enhancing the ultimate profit amount. The future tax rate of Group’s other than
litigation and conduct is remaining around 20% (Raut and et. al., 2019). Big data analytics has
been becoming very popular as the concept of academic and also from view point of industry.
This has made new decision tools for designing of data-driven supply chain.
The manufacturing industry is under huge pressure to integrate sustainable practices into their
overall business for sustainable operations management.
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Balance Sheet
The balance sheet is prepared to analyse and record the fluctuation of assets and
liabilities, it is further used as the source to manage both the elements effectively and to maintain
the balance among asset, liability and equity . The asset amount of company is increased by £ 7
B to £ 1,140 B, while the cash balance is reduced by £ 27 B to £ 150 B. It can be assumed that
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I
llustration 2: Balance sheet of Barclays PLC.

the reason behind the decrement in cash in hand can be the infective management of cash flow,
the liquidity
pool of cash is used meet the funding as well as to meet the regulatory requirements
Lloyds :
Financial statement
The organisation’s generic profit after effective tax was £ 3,006 million, that is about 33 per cent
decrement than in year 2018 in addition to that the net income was also reduced by £ 17,142
million that is 4 per cent lower then year 2018. Thus it can be ascertained that the Lloyds group'
s grapfh is down about an average of 4 % rate.
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Illustration 3: Financial statement of Lloyds

Balance Sheet
The balance sheet of Lloyds bank states that the firm here is striving towards the security
of its assets and equity. The numbers of dividend distribution has been observes as a high in
range. The bank's capital position is determined as strong within the pro forma of CET1 ratio
that is about 15.0 % on pre dividend accrual as well as 13.8 per cent on the post dividend.
Thus form above interpretation of financial data that is given in relation to Barclays and
Lloyds it can be justified that both the companies are striving towards success along with
strengthening their financial resources as well as the balance of flow of income.
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Illustration 4: Balance Sheet of Lloyds bank

The justification here can be formulated in this report that Lloyds Banking PLC is currently
facing a detrimental flow in the financial performance. While on the other hand Barclays
Staff, shareholders, customers and other key stakeholders
In present scenario, in any of the organisation, there staff plays the must crucial role for the
purpose of accomplishing the goals of an organisation. They are the one who supports that how
any of the work is needed to be done in a specific manner. When it comes to Barclays Plc, there
are around 85,000 employees who is working with the organisation for the purpose of
accomplishing the goals (Number of employees of Barclay’s group worldwide, 2019). The
number of employees are contributing towards the organisation by performing their work in
different part of the world. On the other side, Lloyds Plc has around 75000 employees who are
working with the company (ANNUAL REPORT AND ACCOUNTS, 2019). Talking about the
difference between the companies it can be easily seen that there is the difference of around
10000 staffs. Moreover, staffs of the Barclay are more motivated and they perform work with the
professional approach and on other Lloyds company face challenges because finance department
face lack of guidance to complete work in an organised manner. The employees of both
organisation are able to work as per the requirement of management which is allowing them to
sustain within the market for providing different services. The reason behind the betterment of
both the organisation is simply as their management is able to meet out the expectation which
there employees is willing. Different benefits are being given to their employees which includes
leaves, private medical care, tax benefits and many more. This simply allow the company to
retain their employees for longer time period (Sebikari, 2019). Globally lot of scholars has
viewed entrepreneurship as an important part for an small business enterprise to be developed.
Such types of development the key consideration in Uganda due to the dominance of it in the
economy of Uganda.
It is crucial for the company to know that there shareholders plays the most significant
role for achieving the targets. Shareholders are the one who plays the active role at the time
making any of the decision which has a impact on outcome of the company. In any of the
organisation, involvement of the shareholder can allow the company to perform better. In context
of Barclays Plc, their shareholders has the major role in performing any of the business activity
as they are the one who holds the power for making decision within the company. There are 352
institutional owner connected within the company. When it comes to institutional shares, they
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are around 157,678,642 who has been supporting the company for the up liftment of the
performance. The support for the shareholder and there decision making ability is allowing them
to earn higher amount of profit on regular basis. Including all of the profit and benefits, the
institutional value is $2,107,823 USD. While talking about Lloyds Plc, they have also covered a
decent market and even they are able to give tough competition to their rivalry firms. Talking
about the performance of the company, it can be easily said that company should take the
appropriate steps to for the betterment of a company. There are around 48000 shareholders
connected with the company in present situation. The investors of both the banks has common
goals where they wants less risk with high return which can allow them to perform better in any
of the situation. Also, shareholders are willing to provide different services to their customers so
that they can easily connect within the organisation as it will simply uplift the standard of a
company. Even it will allow to give tough competition to rivalry firm.
Customer has the huge expectation form the company as they wants the services which
can easily give them the idea to meet out the goals. When it comes to banking sector there are
lots of expectation which customers carry with them such as low interest rate for the loan, high
return on fix deposits and many more. In context of Barclays Plc, they have been giving the
customers a different types of benefit can allow them to connect with the organisation. In present
situation they have around 24 million customers across the globe who has been enjoying the
services of a public. On the other side, Lloyds Plc has around 30 million customers connected
with them. For the purpose of meeting out the expectation of the customers, it has been found
that company is delivering the services through which personal application which is quite easy to
operate. The best part of the application is its security system which allows to secure every single
transaction of the customers. Also, different services related to loan and other services is helping
the management to satisfy their customers. While talking about Lloyds Plc, they have been able
to connect the most number of customers with the company just because of the benefits and
services which they provides to them. Company is more focused towards digital services which
are effective in itself. Secondly, they are able to deliver flagship banks within Scotland and
different part of UK which is one of the interesting topic for the customers. The another best part
of Lloyd bank is their rate of interest charged against the loan amount is low as compared to
Barclays bank is a positive sign for the customers.
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There are number of other stakeholders who are connected with both Barclays Plc and
Lloyds Plc and who has been playing the supportive role in accomplishing the targets of a
company. The most interesting stakeholders for both the company is Nongovernmental
Organisation (NGOs). Both, the organisation look for the welfare of a public which is directly
allowing the company to attract customers. Also, this stakeholder are allowing the company to
meet out Corporate Social Responsibility through which goals can be accomplished easily.
Corporate governance issue
Corporate governance is one of the most significant topic which plays the important part
with the business organisation. It is simply the plays and policies which are implemented within
the company that are required to be followed. If in any of the situation company is not able to
perform as per the requirement then in that respective condition they might have to suffer from
different sort of problem. This problem will not allow the business organisation to accomplish
there goals on specific time period. Talking about the business organisation of Barclays Plc, they
have been facing number of issues related to corporate issues as it was found that company is
unable to meet out the standard of annual report describing. Moreover, the profile analysis of
Barclays top executive demonstrate executive not concern for daily monitoring which generates
issue for organisation in completing work properly and also make delay in completion of project.
There were lots of inconsistency in knowledge due to which there were number of errors were
found. Secondly, the profit for the CEO of Barclays Plc has increased by 2.1% which was
£2,400,000 whereas Directors profit is around £1,725,000 which has increased by 4.5%
(Barclays Annual Report, 2019). On the other side, talking about the corporate Governance of
Lloyds Plc, they are able to meet out the expectation of corporate governance. But with analysis
broad of directors profiles it is identified that investors are not satisfied with their perspective.so
it is complex to manage between both persons company and clients properly. This results work is
not completed with proper plans. They had taken each and every decision according to the
policies which has been prepared by them. But, the area where they were not able to work as per
the requirement is about provision 36. Here, whilst remuneration committee was not able to
introduce the formal policies for the post-employment which created the problem for employees
and company. But, profit of the CEO decreased significantly as they were unable to deliver all of
the expectation of customers. The profit for CEO is £2.5billion. When it comes to the profit of
director, it is still constant and has been not changed since 2016 (Skobkin and et. al., 2017). The
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purpose of this special issue is to provide a contribution to the increasing interest in knowledge
transfer (KT) and organizational performance and business process. In this perspective, past,
present and future issues discussing the relationships between the transferability of knowledge
and company performance management
.
CONCLUSION
From the above file, it can be concluded that any of the business organisation required to
perform as per the requirement of a market for the purpose of accomplishing the goals of an
organisation. There is the huge importance of corporate governance as it simply explains that
how any of the work is needed to be performed within the organisation so that chances of errors
can reduced. Both of the company were found that they were unable to meet out the expectation
of corporate in some of the points which created some of the problem for them in achieving
mission. For the purpose of future improvement, it will be necessary for the management to
provide proper training to employees which will give them the guidance that how they are
needed to perform any of the business activity. Further improvement can be brought by
evaluation of board performance. Also, ensuring about delivering any of the changes in
information will play the crucial role for the company. If company like Barclays and Lloyds Plc
will be able to work as per the requirement, then in that respective situation they will be able to
meet out the expectation of the customers. There will be higher possibility of increasing the
market share for both the organisation. Implementation of new corporate governance within the
company and following each of them will give the idea to company that how they are needed to
give competition to there rivalry firm. It is one of the most important task for any of the company
for achieving the targets on time.
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REFERENCES
Books and Journals
Castillo, P.A. and et.al., 2017. Applying computational intelligence methods for predicting the
sales of newly published books in a real editorial business management
environment. Knowledge-Based Systems. 115. pp.133-151.
Raut, R.D. and et. al., 2019. Linking big data analytics and operational sustainability practices
for sustainable business management. Journal of cleaner production. 224. pp.10-24.
Santoro, G. and et. al., 2018. Big data for business management in the retail
industry. Management Decision.
Sebikari, K.V., 2019. Entrepreneurial performance and small business enterprises in
Uganda. International Journal of Social Sciences Management and Entrepreneurship
(IJSSME). 3(1).
Skobkin, S.S. and et. al., 2017. The development of a business-processes model for the quality
management system in the hotels. Journal of Environmental Management &
Tourism. 8(4 (20)). pp.775-783.
Online
Number of employees of Barclays group worldwide. 2019. [Online]. Available Through:
<https://www.statista.com/statistics/441855/barclays-group-employees-by-country-worldwide/>
ANNUAL REPORT AND ACCOUNTS 2019. [Online]. Available
Through:<https://www.lloydsbankinggroup.com/>
Lloyd Annual Report. 2019. [Online]. Available Through:
<https://www.lloydsbankinggroup.com/globalassets/documents/investors/
2019/2019_lbg_annual_report_v3.pdf#page=7%22>
Barclays Annual Report. 2019. [Online]. Available
Through:<https://home.barclays/content/dam/home-barclays/documents/investor-relations/
reports-and-events/annual-reports/2019/Barclays%20PLC%20Annual%20Report%202019.pdf>
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