Financial Markets and Institutions

GROUP 1
Financial Markets and Institutions
01 Background on Investment Banks
Definition : An investment bank is a financial services company that acts as an intermediary in large
and complex financial transactions (IPO and additional stock offering).

Key functions of investment banks are:

- Intermediary Role
- Financial Advisors
- Merge and Acquisitions
- Research
01 Background on Investment Banks
Investment Bank Activities:
- Accepting: Commercial banks will also accept bills, but historically, it is an investment bank activity
- Corporate Finance: Investment bank helps corporate implement complex financial activities, which are:
01 Background on Investment Banks
- Securities Trading :
 Trading securities in the secondary market.
 Investment bank deals cover domestic bonds and equities and international bonds and
equities and derivatives (option and future contracts)

- Investment management: The investment funds these managers control may be

the bank’s own funds or fund s from other institutions/individuals:

- Loan Agreement :
 Investment banks usually offer complex syndicated loans for special projects.
 The service includes deciding on the terms of the loan and the cheapest way to find the
money.
Investment bank s also raise finance for international trade (import-export activities)
01 Background on Investment Banks
- Foreign Exchange: Investment banks that
are permitted commercial bank functions
will run a foreign exchange trading desk
for their clients and their own proprietary
trading, and it may be an important source
of profit.
- Miscellaneous Activities: A range of
miscellaneous activities may be carried out
by investment banks, possibly through
separate legal subsidiaries, for example:
Financial Markets and Institutions
 BARCLAYS INVESTMENT BANK.

 History of establishing and development

- Barclays, headquartered in London, is a British banking institution divided into two primary segments:
Barclays UK and Barclays International, with support from Barclays Execution Services. Its origins date back
to 1690 as a goldsmith banking business, later evolving into a joint-stock bank known as Barclays and Co. in
1896. Throughout its history, Barclays has expanded nationwide and pioneered the first cash dispenser in 1967.
- Net Income: £5.973 billion
- Total Assets: £1.514 trillion
- Total Equity: £69.260 billion
- Top Subsidiaries: Barclaycard, Barclays Bank plc, Barclays Bank UK plc, Barclays Shared Services
 BARCLAYS INVESTMENT BANK.

 Strategies

(*) Performance measures:

+) Our customers and clients
+) Our colleagues
+) Society
+) Investors
Our investor stakeholder group encompasses investors, rating agencies and other market participants with an
interest in the financial performance of the Group.
 BARCLAYS INVESTMENT BANK.
(*) Investor Update
Barclays aims to become Simpler, Better and More balanced. This will enable us to improve our customer
service, provide more support to consumers and businesses, deliver higher - quality income growth, and build
returns.

 Simpler:
Creating a simpler organization, structure and operations to reduce cost and complexity.

 Better:
Higher quality income and customer experience, and a focus on delivering better returns

 More balanced:
More balanced capital allocation by business and geography means we will be able to provide more financing to
customers and businesses.
 BARCLAYS INVESTMENT BANK.
(*) Diversity, Equity and Inclusion

At Barclays, we’re committed to continuing to build a diverse, equitable, and inclusive workplace. We believe
that when we make our organization inclusive and equitable, we can make the most of the different
backgrounds, perspectives, and experiences of our colleagues and better serve our customers and clients.

We focus on 6 areas: disability, gender, LGBT+, multicultural, multigenerational and socio-economic

inclusion.
 BARCLAYS INVESTMENT BANK.
 Service
1. Current accounts
Everyday current accounts
- Student and graduate current accounts
- Accounts for under 18s
- Foreign currency current accounts
2. Loans
Borrowing to suit you: Whether you’d like a loan to consolidate debts or buy something special, we’ve got lending
options to suit you. Subject to application, financial circumstances and borrowing history.
Other borrowing options
o Barclaycard
o Top-up loan
o Other ways to borrow
 BARCLAYS INVESTMENT BANK.
3. Mortgages
Mortgages for every need
o First-time home buyers
o Mortgages for moving home
o Buy-to-let mortgages
4. Barclays insurance
Our insurance products: Barclays life insurance, Barclays tech insurance, Barclays travel and breakdown
insurance, Business insurance
5. Credit cards: Rewards credit cards. Purchase offer credit cards, Credit building credit cards,
Balance transfer credit cards
6. Barclays Life Insurance
What is life insurance? Life insurance offers more than just reassurance and financial protection – it helps protect
a way of life for your loved ones if anything happens to you. \
 BARCLAYS INVESTMENT BANK.

Find the right cover to suit your needs

Barclays Simple Life Insurance

We designed Barclays Simple Life Insurance to be just that – simple. You’re in control of how long you want to
be covered for, and if your circumstances change you can simply change your policy.
.
Life insurance for mortgage protection
Owning your own home is one of the biggest financial commitments you’ll make, and getting life insurance is a
simple way to make sure it’s protected if you die or become terminally or critically ill
 BARCLAYS INVESTMENT BANK.

 Operation
Barclays main operations are:

 UB Banking
- Provides solutions to Barclays UK retail and business banking customers.Customers are served through a
variety of channels comprising: the branch network, cash machines, telephone banking, online banking and
relationship managers. It is managed through two business areas, UK Retail Banking and Business Banking.
 BARCLAYS INVESTMENT BANK.
 Wealth Management
Barclays Wealth Management is one of the leading Wealth Managers in the UK. It serves affluent, high net
worth personal and corporate clients, primarily in the UK and continental Europe, providing private banking,
offshore banking, stockbroking financial planning and asset management services Businesses include

-Barclays Financial Planning-one of the largest financial advisers in the UK providing tailored and impartial
regulated financial planning advice on life, pensions and investment products. Its 800 advisers offer customers
expert advice and access to leading financial providers from across the market.

-Gerrard - one of the leading wealth managers in the UK providing bespoke advisory and discretionary
investment advice through regional offices across the UK
 BARCLAYS INVESTMENT BANK.

 International Retail and Commercial Banking

-Provides a range of banking services, including current accounts, savings, investments, mortgages and loans, as
well as services to corporate customers across Spain, France, Portugal, Italy, Africa and the Middle East.
Barclays operates over 800 international branches. It is also responsible for Barclays stake in FirstCaribbean
International Bank and Barclays majority stake in Absa, South Africa's largest retail bank, with over seven
million customers.

- Other businesses are Barclays Capital, Barclaycard and Barclays Global Investors which have their own
sections below. Woolwich, part of UK banking, is also profiled.
 BARCLAYS INVESTMENT BANK.

 Barclaycard

- In the UK, Barclaycard has 11.2 million retail customers, with 3.7 million cards issued internationally.
Barclaycard can be used to pay for goods and services in more than 22 million places in over 200 countries and
to withdraw cash from over 600,000 cash machines and banks worldwide.

- Barclaycard was set up in 1966 and was the UK's first credit card. It is also the UK's leading card services
provider on the internet. More than 800,000 customers regularly use Barclaycard's online account services.
 BARCLAYS INVESTMENT BANK.
 Barclays Capital
- Barclays Capital is the investment banking division of Barclays Bank PLC which has an AA long-term credit
rating and a balance sheet of over £924 billion. With a distinctive business model, Barclays Capital provides
large corporate, government and institutional clients with solutions to their financing and risk management
needs. Barclays Capital has offices in 26 countries, employs over 9,000 people and has the global reach and
distribution power to meet the needs of issuers and investors worldwide.
- In November 2005 Financial News magazine awarded Barclays Capital 'European Investment Bank of the
Year' in its annual Awards for Excellence.
- Barclays Capital - the investment banking division of Barclays Bank PLC. Registered in England 1026167.
Registered office 1 Churchill Place, London, E14 5HP. Authorized and regulated by the Financial Services
Authority and a member of the London Stock Exchange.
 BARCLAYS INVESTMENT BANK.

 Barclays Global Investors.

Barclays Global Investors is one of the world's largest asset managers and a leading global provider of
investment management products and services. It has over 2,700 institutional clients and over £780 billion of
assets under management.
- It transformed the investment industry by creating the first index strategy in 1971 and the first quantitative
active strategy in 1978.
- BGI is the global product leader in Exchange Traded Funds (shares) with over 100 funds for institutions and
individuals trading in ten global markets. It has £84 billion of shares under management.
 BARCLAYS INVESTMENT BANK.
 Management
1. Board Responsibilities
- The Board's principal duty is to create
and deliver sustainable shareholder value
through setting Barclays' strategy and
overseeing its implementation.
- Matters reserved solely for the decision-
making power of the Board are set out in
our bespoke Matters Reserved to the
Board. Those matters include material
decisions relating to:
 BARCLAYS INVESTMENT BANK.

2. Board Committees

Certain responsibilities are delegated to Board Committees, which assist the Board in carrying out its functions
and ensure that there is independent oversight of internal control and risk management

The Board is empowered through its Articles of Association to delegate all or any of its powers, authorities and
discretions to any committee or committees as it thinks fit. The principal Board Committees are the Board
Audit Committee, the Board Risk Committee, the Board Nominations
Committee, the Board Remuneration Committee and the Board Sustainability Committee.

The Chairs of each Committee report on their Committee’s work at every scheduled Board meeting.
 BARCLAYS INVESTMENT BANK.
o Board Audit Committee
Review and monitor, among other things:

· The integrity of the Group’s financial statements and related announcements

· The effectiveness of the Group’s internal controls

· The independence and effectiveness of the internal and external audit processes

· The Group’s relationship with the external auditors

· The effectiveness of the Group’s whistleblowing procedures

Committee Chair: Julia Wilson
 BARCLAYS INVESTMENT BANK.
o Board Nominations Committee
· Support and advise the Board in ensuring it is comprised of individuals who are best able to discharge the
duties and responsibilities of Directors and that Barclays PLC has the appropriate corporate governance
standards and practices in place

· Focus primarily on the composition, appointments, succession and effectiveness of the Board, ensuring that
both appointments and succession plans are based on merit and objective criteria and, within this context,
promote diversity of gender, social and ethnic background, cognitive and personal strengths

· Oversee the adoption of appropriate internal policies on the assessment of the suitability of Directors,
members of the Group Executive Committee and other key personnel subject to regulatory approval

· Keep the Board’s governance arrangements under review and make appropriate recommendation to the
Board to ensure that the Barclays PLC’s arrangements are consistent with best practice corporate governance
standards

Committee Chair: Nigel Higgins

 BARCLAYS INVESTMENT BANK.
o Board Nominations Committee
· Support and advise the Board in ensuring it is comprised of individuals who are best able to discharge the
duties and responsibilities of Directors and that Barclays PLC has the appropriate corporate governance
standards and practices in place

· Focus primarily on the composition, appointments, succession and effectiveness of the Board, ensuring that
both appointments and succession plans are based on merit and objective criteria and, within this context,
promote diversity of gender, social and ethnic background, cognitive and personal strengths

· Oversee the adoption of appropriate internal policies on the assessment of the suitability of Directors,
members of the Group Executive Committee and other key personnel subject to regulatory approval

· Keep the Board’s governance arrangements under review and make appropriate recommendation to the
Board to ensure that the Barclays PLC’s arrangements are consistent with best practice corporate governance
standards

Committee Chair: Nigel Higgins

 BARCLAYS INVESTMENT BANK.
o Board Remuneration Committee

· Sets the overarching principles and parameters of remuneration policy across the Group

· Consider and approve remuneration arrangements of the Chair, the executive Directors of Barclays PLC,
other senior executives and those employees whose total annual compensation exceeds an amount determined
by the Committee from time to time

· Exercise oversight for remuneration issues

Committee Chair: Brian Gilvary

 BARCLAYS INVESTMENT BANK.

o Board Risk Committee.

Review, on behalf of the Board, management’s recommendations on the principal risks as set out in the Group’s
Enterprise Risk Management Framework (ERMF) with the exception of Reputation Risk which is a matter
reserved to the Board, and in particular:
· Review, on behalf of the Board, the management of the principal risks in the ERMF;
· Consider and recommend to the Board as appropriate the Group’s risk appetite and tolerance for those
principal risks;
· Review, on behalf of the Board, the Group’s risk profile for those principal risks;
· Commission, receive and consider reports on key risk issues; and
· Safeguard the independence of, and oversee the performance of, Barclays Risk and Compliance Functions.
 BARCLAYS INVESTMENT BANK.

o Board Sustainability Committee

The role of the Board Sustainability Committee is to provide ongoing oversight of climate matters and the
sustainability agenda.
The Committee shall, among other things:
· Support and advise the Board in its oversight of climate and sustainability matters relating to (i) the
services and products provided to Barclays’ clients and customers, (ii) particular sectors, and (iii) its own
corporate activities.
· Support the Board in monitoring the implementation of the Company’s climate and sustainability strategy
and, if appropriate, make recommendations to the Board as to how to further develop these strategies.
Committee Chair: Nigel Higgins
 BARCLAYS INVESTMENT BANK.
 Performance
a, Investor
- The Barclay investor stakeholder group encompasses investors, rating agencies and other market participants
with an interest in the financial performance of the Group.

RoTE measures our ability to generate returns for shareholders.

CET1 ratio It is calculated as profit after tax attributable to ordinary
shareholders as a proportion of average shareholders’ equity.
 BARCLAYS INVESTMENT BANK.

The cost: income ratio measures total operating Total operating expensive 14.7 -2021 Barcaly views total
expenses as a percentage of total income and is operating expenses as a key strategic area for banks. Those that
used to assess the productivity of our business actively manage costs and control them effectively will gain a
operations. strong competitive advantage.
 BARCLAYS INVESTMENT BANK.
b, Performance - customers and clients
- The Barclay aims to build trust and loyalty by offering innovative products and services with an excellent
customer and client experience.

Net Promoter Score (NPS) is used to measure the strength of customer relationships. We track NPS
to identify both our strengths and where there is room for improvement, informing how we develop
our services and products in the future.
 BARCLAYS INVESTMENT BANK.

Net Promoter Score (NPS) is used to measure the strength of customer relationships. We track NPS
to identify both our strengths and where there is room for improvement, informing how we develop
our services and products in the future.
 BARCLAYS INVESTMENT BANK.

Digital engagement assesses digital value proposition and user experience. Barclay measures usage
over a 90-day period as a percentage of total active customers, reflecting the general health of the
digital experience and allowing us to uncover any issues we may need to address.
 BARCLAYS INVESTMENT BANK.

Revenue ranks and market shares are good indicator to monitor success and identify opportunities.
By using Dealogic Investment Banking global fee ranking and share, and a comparison to global
peers' share of reported revenues for Global Markets, we can assess our relative performance versus
a defined peer group1 clearly and transparently.
 BARCLAYS INVESTMENT BANK.
c, Colleagues
Barclays has a diverse talent pool of around 90,000 colleagues across the world. We engage in regular dialogue
with our colleagues to understand what is working well and where there are opportunities to improve. This
includes townhalls, skip-level meetings, site visits, leader-led engagement and surveys. We maintain an
engagement approach in line with the UK's Financial Reporting Council (FRC) governance recommendations.

Colleague engagement is derived from the responses to three

questions in our all colleague. It enables they to monitor how
engaged our workforce is and closely relates to key
organizational and colleague outcomes such as productivity,
wellbeing and retention.
BARCLAYS INVESTMENT BANK.

This metric is used to monitor our progress against Barclay

gender ambition of 33% females at Managing Director and
Director level by the end of 2025.

86, 85, 82 This is one of the three questions making up our

colleague engagement score, specifically measuring advocacy
of Barclays as an employer. In addition to being used as part
of our engagement score, this question can also be used as an
'Employee Net Promoter Score' and is regularly tracked in
our monthly pulse survey.
 BARCLAYS INVESTMENT BANK.
d, ESG ratings performance
- The Barclay remain committed to enhancing disclosures and to engaging with industry-led initiatives
intended to support an effective and trusted ESG ratings market.

- Barclays continued engaging with key ESG ratings agencies to provide clear and consistent disclosures to our
stakeholders. Five of the ratings we track were unchanged, two declined, and three improved.
 BARCLAYS INVESTMENT BANK.
 Conclusion
- Barclays Investment Bank has established itself as a trusted and innovative player in the banking sector,
leveraging its rich history and global presence. The company's focus on customer satisfaction, strategic
acquisitions, and commitment to societal impact and diversity has contributed to its position as one of Europe's
largest banks. Barclays' performance measures, guided by principles of simplicity, quality, and balance,
demonstrate its dedication to providing exceptional services, supporting communities, and driving sustainable
growth.

- With a diverse range of services spanning current accounts, loans, mortgages, insurance, and credit cards,
Barclays caters to the diverse needs of its clients while promoting inclusive and equitable practices. As the bank
progresses towards becoming simpler, better, and more balanced, it sets a benchmark for excellence in the
financial industry, aiming to deliver value and support to all stakeholders for a prosperous financial future.

- Overall, while Barclays has demonstrated strengths in various areas, there are opportunities for improvement
to align with strategic goal and meet stakeholder expectations.
THAN YOU – THANK YOU
HANK YOU – THANK YOU – THANK

HANK YOTHANK YOU

FOR YOUR
ATTENTION!
YOU – THANK YOU – THANK YOU –
– THANK YOU – THANK YOU – THA