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Finance : Risk Management and Investment - Essay Example

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Finance : Risk Management and Investment

Revenue and pretax ……………………………………………………. 7
Risk management ……………………………………………………… 8
Return on investment …………………………………………. 9
Mergers and Acquisitions …………………………………….. 9
Customer satisfaction ………………………………………… 10
Cost reduction ………………………………………………… 11
Leadership strategies …………………………………………. 11
Conclusion ……………………………………………………………. 12
Bibliography ………………………………………………………….. 16
Appendix …………………………………………………………….. 18





Executive summary
The economic crisis of 2007/2008 has played a major role in the operation Barclays bank, Old Mutual, and Standard bank. It has affected their operations calling for objective strategies to be taken to save the banks. With the reported asset base of about $2.33 trillion in 2010, the Barclays Bank management has taken drastic measures to ensure that the company grows even bigger (Marie 2012, p.12). This is similar to both the Old Mutual and Standard banks. Mergers and acquisition has been some of the strategies used by the banks to increase its influence as a financial institution. For instance, Barclays has been able to acquire assets of the most competitive banks such as the Absa Group Limited in South Africa and bought about 54% of Juniper Bank (Davidoff 2012, p.42). On the other hand, Standard bank acquired Union Bank of Pakistan taking more than 81% of its assets. This strategy is not only aimed at perpetuating return on investment but also increasing the competitive advantage of the bank. Barclays bank has however been through some of the most difficult moments since its inception. In 2011, the bank suffered a loss of about 1.04 billion pounds (Treanor 2012, p. 4). This loss prompted the company to take objective measures aimed at minimizing the cost of operation. Between 2011 to-date, the bank cut more than 6,700 jobs as a way of addressing its challenges. Currently, market capitalization stands at about 54.75 billion. The dividends and earning per share have been dwindling since 2007 (Shankleman 2009, p.78). The management understands the role played by such factors as far as attracting investors and customers is concerned. This explains why the management has maintained its dividends at 6.50p and EPS at 34.50p despite the financial challenges. Risk management factors such as focus on return on investment, customer satisfaction, leadership, and cutting on the cost of operation will be imperative. This will enable the bank realize its objectives and become one of the most performing financial institutions in the world. Introduction The Barclays bank is one of the oldest of all banks that still stands strong. It has among the top 10 most active and performing banks in the world. Founded in 1690, the bank has subsidiaries in about 50 countries worldwide (Werdigier 2007, p.61). The old mutual on the other hand commenced its operations in 1845, making it one of the oldest financial institutions in Africa. With its headquarters in London, the Standard Bank serves more than 70 countries worldwide and millions of customers. On the other hand, Barclays Bank employed thousands of professionals throughout the world to provide services to its more than 48 million customers. The Old Mutual on the other serves slightly more than 14 million customers worldwide. The banks have had mixed performance especially after the economic recession of 2007/2008. The total assets of the Barclays stand at slightly more than ...Show more

Summary

Table of content
Executive summary ……………………………………………………. 3
Introduction ……………………………………………………………. 4
Market capitalization, dividends and EPS ……………………………… 5
Revenue and pretax ……………………………………………………. 7
Risk management ……………………………………………………… 8
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Finance essay: Risk Management and Investment essay example
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