You might probably have an idea of what the iconic Barclays bank do within the financial services sector. However, you might still be wondering; how does Barclays bank make money?
Whether you are an entrepreneur, investor or customer, you might be keen on the activities of Barclays bank.
You might be interested in opening an account with them, borrowing fund from the bank or even investing or managing your wealth through the bank.
Whatever the reason, you need to understand how Barclays bank makes money first.
The bank has been around for decades. It has a wide range of products and services that contribute to its bottom line.
Understanding how Barclays bank make money can help you to decide whether to do business with the bank or not.
You could also use the information to decide whether to invest in the stocks or shares of the bank. Is Barclays bank stock a good investment?
In this article, you are going to learn and understand how Barclays bank makes money. This is your guide into the revenue streams and profit drivers the Barclays bank.
Let us get into the conversation.
How Does Barclays Bank Make Money?
Every bank has it’s way of doing business and making money.
For Barclays bank, it makes money from the following;
- Consumer Banking
- Investment Banking
- Payment Processing
- Corporate Banking
- Credit and Debit Cards
- Interest Income from Loans
- Investment Income/Activities
One of the promising market situation is the rising interest rates. This will and could lead to higher income for the Barclays bank.
Overall, equities income is increasing as strong client activity in derivatives and increased client balance in financing.
In conclusion, Barclays bank makes a lot of money from corporate and investment banking business units or segments.
In recent years, these two segments or divisions have had great results in terms of fees and equities income.
This has had the effect of boosting the Barclays bank’s return on tangible equity.
If you are keen on measuring the profitability of Barclays, the return on tangible equity is a very important metric to know.
The bank’s most recent financial results showed that sales and trading generated the most amount of money, representing 39% of total revenues.
Overall, Barclays bank makes money from consumer banking, credit cards, commercial banking, investment banking, wealth management as well as sales and trading units.
Barclays is listed in at London Stock Exchange and New York Stock Exchange.