The top-line increased 5% y-o-y to £23.7 billion in FY2022. It was driven by a 11% rise in the Barclays UK division, followed by a 14% increase in the Barclays international unit.
Below are key drivers of Barclays' value that present opportunities for upside or downside to the current Trefis price estimate for Barclays:
For additional details, select a driver above or select a division from the interactive Trefis split for Barclays at the top of the page.
Barclays is a London-based global money center bank that provides consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage, and wealth management. It is the leader in debt issuance in Europe. It has a strong presence in the U.K. retail and commercial banking industries. Over recent years it has refocused most of its efforts on providing diversified banking services in the U.K., the U.S., Germany, and southern Europe.
At the end of 2022, Barclays International reported around $165 billion in loans and close to $356 billion in deposits for its Barclays International division. The International division generated around $6.1 billion in interest revenues for the banking giant. Taken together with the related fee and trading incomes, the division brought in approximately 58% of Barclays' total revenues.
With the GDP and per capita income of emerging markets growing rapidly, there is an increasing demand for capital from companies in these markets to support the growing purchasing power of the people. Also, with the integration of these markets with the global economy, there is a shifting trend in these countries from family-run businesses to corporations. As a result of these factors, an increasing number of companies in these markets are going public, leading to a growing demand for equity underwriting services. Additionally, consolidation across different sectors is driving demand for M&A advisory services.
The Volcker Rule restricts banks from making certain kinds of speculative investments if they are not on behalf of their customers. Barclays's proprietary trading desks have accounted for a significant percentage of its earnings in the pre-2008 era. The Volcker Rule is likely to result in a reduction in total trading revenues from the U.S. for the bank.