Report on Finance for Managers

FINANCE FOR MANAGERS

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Analysis and comparison of Lloyds bank and Barclays bank.....................................................1
Analysis and comparison of Lloyds bank ..................................................................................5
The different financial and non-financial areas considered by an investor.................................6
Challenges and risk faced by Lloyds bank .................................................................................8
Recommendations.......................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

INDEX OF TABLES
Table 1: Comparison between Lloyds and Barclays........................................................................1
Table 2: Assets Comparison between Lloyds and Barclays............................................................4
Table 3: Comparison between Lloyds ratios...................................................................................4

INTRODUCTION
Financial management helps a manager to define the goals of an organization. He
allocates resources and provides direction to the various functions of the business. A manager
studies the financial information and takes necessary decisions to ensure that the company is
prepared of any future uncertainty (Tugas, 2012). The report focuses on the comparison of
financial performance of Lloyds Bank Plc and Barclays Bank Plc. Moreover, the evaluation of
problem solving techniques and mechanism adopted by Lloyds Bank Plc has also been included
in the report. Lloyds Bank Plc is Brutish retail and commercial bank with its headquarters in
London, UK (Llyods banking group, 2016). It is among the big four clearing banks of the nation.
Barclays Bank Plc is a multinational bank which has its business operations in more than 50
countries.
Analysis and comparison of Lloyds bank and Barclays bank
Lloyds Bank Plc has been facing tough competition from the Barclays Bank Plc. Lloyds
has a simple business model and it is limited to UK (Krzysko and Marciniak, 2001). On the other
hand, Barclays is a diversified back and provides services like retail banking, commercial
banking, credit cards and investment banking around the world. Financial crisis had a huge
impact on the business of banks and financial institutions. There were lot of restrictions on them
and the policies were also stringent. It was very difficult to get credit in Europe. It is for the same
reason that the UK government bought stakes in Lloyds bank. Many banks failed after the
financial crisis and it affected the entire European economy. However, as the economy started to
recover the policies, regulations began to reduce. Lloyds bank had profits of more than £1,899
million after the crisis of 2008. It has shown strong performance with its current combined ratio
of 91.3%. The total assets of Lloyds stood at £2 billion at the end of year 2008. The performance
of Lloyds bank improved after the split up of Lloyd TBS. All the banks in Euro zone have been
facing difficulties because the recovery rate of economy has been slow.
Key financial and Ratios comparison:
Table 1: Comparison between Lloyds and Barclays
Ratios (2014) Lloyds Bank (in millions
GBP)
Barclays Bank Plc (in
millions GBP)
Turnover 40.76 32.70
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