Page 42 - Flip Banks TG
P. 42

Threats



                   •  Brexit uncertainty is bad for many UK businesses

                       including Barclays. Management have already come up

                       with contingency plans to establish an enhanced
                       presence inside the EU to handle Barclays EU activities


                       within the borders of Europe should this be required as
                       a result of the Brexit negotiations (Financial Times 2017).

                   •  Regulatory pressures including new capital

                       requirements.

                   •  Introduction of a new 8 percent surcharge on bank

                       profits in January 2016 by UK government.

                   •  Legal proceedings by the Serious Fraud Office (SFO)

                       over the bank’s dealings with Qatar at the height of the

                       financial crisis.

                   •  Book value to share price. Potential to be seen as a

                       target for acquisition.

                   •  Shareholder disquiet over poor dividend return may

                       lead to shareholder revolt.
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