well after the failed merger with ABN AMRO, Barclays has
re-energised – and is going global. In a little over two years, the
bank, the UK’s third-largest and the 11th-largest globally in terms
of retail and commercial banking revenue (see chart), has
almost doubled its branch and sales points network outside the UK
from 1,598 units at the end of 2005 to 2,749 in March this year. In
the first quarter of 2008 alone it opened 400 branches, and says it
will accelerate its growth in the emerging markets after moving
into India, the UAE, Russia and
Pakistan.
The bank’s Global Retail and Commercial Banking (GRCB) division
already contributes 55 percent of group profits, a figure which is
set to grow. In fiscal 2007, the bank’s emerging markets profit
before tax increased by 25 percent.
“Make no mistake. We will grow our UK business, but over time, the
G in GRCB will become bigger than it is today,” said Frits Seegers,
the bank’s GRCB chief executive, at a retail banking investor
presentation in London on 15 April.
Go deeper with GlobalData
In an echo of recent investor presentations from rivals such as
Standard Chartered and HSBC, Barclays restated its determination to
allocate capital to developing markets where returns are higher.
There was one exception: in the US, where customer loan balances
have expanded from $1.6 billion in 2005 to $6.5 billion in 2007,
the bank’s Barclaycard unit is now the 11th-largest issuer of cards
and is expected to meet its 2008 profit before tax target of $150
million.
In a relatively short space of time, Barclays has become the
second-largest issuer of credit cards in the United Arab Emirates.
It is also becoming the biggest bank in sub-Saharan Africa, where
it is present in Kenya, Ghana, Zambia, Botswana, Tanzania, Uganda
and Zimbabwe and, of course, South Africa.
According to Ahmed Khizer Khan, chief executive of emerging
markets, highlights in 2007 included: Ghana, where the bank doubled
its number of savings accounts; India, where the group has high
expectations (see RBI 589) and is already the second
largest issuer of new credit cards; and Egypt, where Barclays now
has more than a 30 percent market share of auto finance and has
also launched a full service retail banking operation.
Europe remains a key market too. In Germany, Barclays says it is
the largest issuer of revolving credit cards; in Sweden and Norway
it is now the third-largest credit card issuer; it has just
relaunched from a mortgage-only specialist to full retail service
model in Italy; and it is planning a rapid expansion of its branch
network in Portugal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn the UK, where the bank’s retail division currently contributes
18 percent of group profit, the ongoing credit squeeze and market
turmoil is, said Deanna Oppenheimer, head of UK retail banking, an
“opportunity”. She said Barclays had increased its share of new
savings, doubled its market share of net mortgage lending in the
second half of 2007 to 9.3 percent, up from 4.5 percent a year
before, and targeted a 3 percent reduction in the bank’s
cost-income ratio to 54 percent by 2010.
