Barclays plc is a British multinational universal bank headquartered in London, England. It is a major global financial services provider operating in retail banking, investment banking, and wealth management. It is considered a systemically important bank by the Financial Stability Board.

Barclays lifts profit target, kicks off early $639 million share buyback

Key Information at a Glance

Founded: 1690 (in the City of London)
Headquarters: London, England, UK
CEO: C.S. Venkatakrishnan (“Venkat”)
Number of Employees: ~80,000+ (as of 2023)
Listed On: London Stock Exchange (LSE: BARC) and the New York Stock Exchange (NYSE: BCS).

History and Evolution

Barclays has a long and complex history, marked by significant growth and transformation.

2008 Financial Crisis: Barclays notably avoided a direct government bailout (unlike RBS and Lloyds) by raising capital from private investors, including from Qatar. It also acquired the North American operations of the bankrupt Lehman Brothers, significantly expanding its investment banking presence in the US.
1690 – 1900s: Started as a goldsmith banking business. The name “Barclay” became associated with the bank in 1736. It grew steadily, primarily through serving British industry and commerce.
1960s: Took a major step by launching the Barclaycard, the UK’s first credit card, which was a revolutionary product at the time.
1986: Made a pivotal move by acquiring the stockbroker de Zoete & Bevan and the jobber Wedd Durlacher, forming Barclays de Zoete Wedd (BZW), its investment banking arm. This was part of the “Big Bang” deregulation in London.
Post-2010: The bank has been involved in several controversies (see below) and has undergone significant restructuring, including the creation of a “bad bank” to wind down non-core assets and a renewed focus on its core UK and US markets.

Core Business Structure

Barclays is structured into two main divisions:

1. Barclays UK

This division focuses on consumer and small business banking within the United Kingdom.

Barclays Bank UK PLC: The ring-fenced bank housing UK retail banking operations, as required by UK regulation.
Products & Services:
- Current and savings accounts
- Mortgages
- Personal loans and credit cards (Barclaycard)
- Business banking for SMEs
- Wealth management & investment services for UK clients.

2. Barclays International

This division encompasses the global corporate and investment bank, as well as international consumer operations.

Barclays Execution Services (BX): Provides technology, operations, and functional support to the whole group.
Global Markets: Provides sales and trading services in equities, fixed income, currencies, and commodities (FICC) for institutional clients.
Investment Banking: Provides strategic advice, and debt and equity capital raising (M&A, IPOs, etc.).
Corporate Banking: Provides banking services to large corporations and financial institutions.
Consumer, Cards & Payments (CC&P): Manages the international Barclaycard business, including co-branded partnerships and payment acceptance in the US and Europe.

Global Presence

While rooted in the UK, Barclays has a substantial international footprint:

United Kingdom: Its primary market with a vast network of branches.
United States: A major hub for its investment banking and markets businesses post-Lehman acquisition, with significant offices in New York.
Europe, Asia, and Africa: Maintains offices in key financial centers like Frankfurt, Paris, Singapore, Hong Kong, and Johannesburg.

Major Controversies and Challenges

Barclays has faced significant reputational damage and financial penalties over the years:

Libor Scandal (2012): Barclays was fined a record £290 million for manipulating the London Interbank Offered Rate (Libor), leading to the resignation of its CEO and Chairman.
Foreign Exchange (Forex) Rigging (2015): Fined over $2 billion by global regulators for colluding to manipulate foreign exchange rates.
PGA Controversy (2023): Faced public and political backlash for its role in providing financing to the LIV Golf tour, which was seen as “sportswashing” by the Saudi Arabian government.

Recent Strategy and Outlook

Under the current leadership, Barclays is focusing on:

Improving Returns: Streamlining operations and improving profitability, particularly in the investment bank.
Strategic Review: Facing pressure from investors to improve performance, with ongoing reviews of its business structure, including potential changes to its global footprint.
UK Focus: Reinforcing its position as a leading UK retail and business bank.
Cost Control: Implementing efficiency programs to manage expenses in a competitive environment.

In summary, Barclays is a financial giant with a deep history, a complex global structure, and a legacy of both innovation and scandal. It remains a pivotal player in the UK economy and a significant force in global investment banking.

Barclays plc