BARCLAYS

Analysis of Barclays share price

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Among the most popular British shares on the stock exchange markets we find those of the banking sector such as shares of Barclays Banking Group. To learn more about this company and its shares, we offer you the opportunity to follow its share price in real time and read a historical analysis of its price over ten years as well as other information and explanations on the activities of this company.

Elements that can influence the price of this asset:

Analysis N°1

First of all, we will closely monitor the Barclays Group's international growth and expansion opportunities and possibilities, particularly in emerging economies with branch openings or possible takeovers.

Analysis N°2

Barclays' strategy to attract an increasingly younger clientele, particularly for the sale of investment products, is a strategy to be followed in the coming months and years.

Analysis N°3

Similarly, all Barclays' developments in the online banking segment that was one of its gaps will be monitored.

Analysis N°4

It is also interesting to monitor any changes in economic and financial policies around the world.

Analysis N°5

Finally, of course, competition plays an undeniable role in the way this Barclays stock evolves. A sectoral analysis and an analysis of the market shares of each of these major players is therefore essential.

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General presentation of Barclays

Barclays is a British banking group that is one of the largest in the country. Its activities can be basically divided into three main sectors as follows:

  • Commercial banking activities account for 36.8% of its turnover.
  • Financing, investments and higher market activities account for around 33.2% of its turnover.
  • The issuance of credit cards account for around 16.2% of its turnover.

The group currently manages 567.4 million Euros of deposits and 541.6 million Euros of credit. It mainly touches the European market.

Analysis of Barclays share price
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The major competitors of Barclays

In order to carry out a good analysis of the Barclays share price, you must of course also take into account the competition in this sector of activity, which can have an influence on this value. For this reason, we will now give you a quick overview of the group's current main rivals.

BNP Paribas 

Firstly, BNP Paribas is currently the leading bank in the French market in terms of activity and profitability and the 10th largest group internationally. It is present in more than 71 countries around the world. Listed on the French market of Euronext Paris, it is also included in the benchmark CAC 40 stock market index. This bank was created in 2000 by the merger of the Banque Nationale de Paris and Paribas. BNP Paribas is also a company present in the rest of Europe and therefore competes particularly with Barclays.

Bank of America 

This American bank was created in 2009 and is currently the largest in the country in terms of market capitalisation. BOA is also a publicly traded bank on the New York Stock Exchange and ranks among the 20 largest companies in the world. Bank of America is of course a multinational company operating in many countries around the world and is therefore in direct competition with Barclays.

Santander 

Another direct competitor to Barclays is of course Santander, which is the leading banking group in Spain and one of the largest in Europe. Santander is also a group listed on the Madrid, London, Milan and New York stock exchanges. It employs 182,958 people and has more than 90.1 million customers through 13,390 branches worldwide. Santander is still the third largest company in the EuroStoxx 50 and therefore one of the largest groups in Europe.

NatWest Group plc

Finally, the last major competitor to Barclays is of course Natwest Group plc, which was formerly known as The Royal Bank of Scotland Group plc and is a majority state-owned UK banking and insurance holding company based in Edinburgh, Scotland. This banking group of course operates a number of major banking brands that offer both personal and corporate banking services ranging from private banking to insurance and corporate finance. Its main subsidiaries in the UK and therefore in direct competition with Barclays are National Westminster Bank, the Royal Bank of Scotland, Ulster Bank, NaWest Markets and Coutts.


The major partners of Barclays

Of course, the Barclays Group also has some strategic allies in its industry and here are some specific examples of recent alliances.

Pacer Financial

Firstly, the group has partnered around iPath Gold ETNs with Pacer Financial who will provide marketing, education and promotional services in the marketing of ETNs.

Visa 

The group has also recently expanded an existing agreement with Visa for the UK and the rest of Europe with a cooperation that includes competitive markets.

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The factors in favour of a rise in the Barclays share price:

To deepen your understanding of Barclays shares and this company itself it is necessary to understand this company’s current strengths and weaknesses. This is exactly what we offer in this detailed summary of the strengths and weaknesses that characterise this group.

We shall start this detailed analysis with a summary of the major advantages that this company possesses at present which could promote its growth and enable it to improve its future profitability:

  • The first advantage of the Barclays Group concerns the fact that it owns and operates different commercial units with an excellent diversification of its activities in numerous complementary domains. We particularly note its activities in the wealth management sector as well as retail and consumer banking which contribute greatly to this company’s global growth and prosperity.
  • Another advantage of Barclays Bank is its strong attraction for technology and the fact that it was a pioneer in its sector relating to digital transformation.  In fact, Barclays was the first major bank to launch its own website in 1995.
  • Still relating to the positive factors of the Barclays Group, we would point out its particularly effective international expansion strategy as the group currently possesses a large international network with an excellent brand visibility that has been created over the years around the world. At present, and partly through its various international subsidiaries, the Barclays Group employs more than 145,000 people worldwide. The group also operates in over 50 different countries and currently boasts more than 48 million clients.
  • And to conclude, the last advantage of the Barclays Group relates this time to its marketing and advertising strategy that is solid and strengthens the brand’s presence through the media. The group does not hesitate to invest in sponsoring sports events on an international level such as its sponsorship of the Premier League football tournament in England.
The factors in favour of a drop in the Barclays share price:

As you are undoubtedly aware, the Barclays Group does not only possess advantages and strengths from an investor’s point of view, there are also certain weaknesses that you should know of and understand for completing your analyses of this company’s share price. Here as follows are the major disadvantages:

  • First and foremost, the recent economic crises that have affected the United Kingdom have particularly impacted banking activities, notably those of the Barclays’ Banking Group which has experienced dark and difficult times.
  • The brand image of the Barclays Group has also been negatively impacted in the past, notably following the controversy related to the Zimbabwean government financing which particularly affected its reputation.  Older cases still continue to plague the reputation of this bank as well such as its implication with South Africa under apartheid.
  • Finally, the increasingly strict regulations relating to the banking sector as well as the financial crisis caused by the covid-19 pandemic has also weighed heavily on this group’s activities which will continue to feel the effects over coming years.

The factors we have examined here should not of course be analysed alone but used as part of an overall updated analysis. The fundamental analysis that you complete will enable you to confirm if the advantages and disadvantages are still the same or if they have changed and will also enable you to take into account the other exterior factors that could exert a strong influence on the growth of this bank and therefore the future movements of its share price on the stock markets.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Where and how can I buy Barclays Group shares?

There are several ways to buy Barclays shares. You can do so via a traditional investment product such as a PEA or securities account, or via derivatives such as CFDs or contracts for difference, which are offered by the market's online brokers.

How can you successfully analyse the Barclays share price?

One of the secrets to successful stock market analysis is to use multiple methods to obtain signals. You can use technical analysis based on the stock's charts, fundamental analysis based on current events and financial analysis.

Is it possible to trade Barclays shares on the downside?

Although short selling is not permitted by all brokers and bankers on the market, it is possible via certain specific products and contracts such as CFDs or contracts for difference offered by brokers. This will allow you to take a position on both upward and downward trends in the market and in that security.

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