Page 27 - Barclays Bank (B) Teaching Note

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.