The 4 Business Segments Driving Barclays' Stock Value

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Barclays ( BCS ) is a London-based global bank that provides consumers, corporations, governments and institutions with a broad range of financial products and services. It has a strong presence in the U.K. retail and commercial banking industries, and has focused on expanding its operations to emerging markets such as India, China and the Middle East. It competes with other worldwide banking institutions and financial services group like Citigroup ( C ), The Royal Bank of Scotland Group ( RBS ), Bank of America ( BAC ), UBS ( UBS ) and JPMorgan Chase (JPM).

We maintain an $18.30 price estimate for Barclays stock , roughly in-line with market price.

The 4 Most Important Business Segments for Barclays

1) Sales & Trading - represents 44% of the company's stock value

Barclays' sales and trading desk (also classified as Global Markets) undertakes the sales, trading and structuring of a wide range of financial market products including bonds, equities and equity-linked products, exchange traded and over-the-counter derivatives, foreign exchange, money market instruments, securitized instruments and commodities.

See the top forecasts for the sales & trading division

2) Consumer Banking - 26%

Barclays' UK Retail Banking includes home finance, local business and consumer lending. Besides this, the Barclays Commercial Bank provides banking services to organizations with an annual turnover of more than £1m. Customers are also offered access to the products and expertise of other businesses in the group, particularly Barclays Capital, Barclaycard and Barclays Wealth.

See the top forecasts for the consumer banking division

3) Investment Banking - 7%

Barclays Capital is the investment banking division of Barclays that provides large corporate, institutional and government clients with solutions to their financing and risk management needs. Barclays Capital services a wide variety of client needs, covering strategic advisory and M&A, equity and fixed income capital raising, corporate lending and risk management.

See the top forecasts for the investment banking division

4) Barclaycard - 7%

Barclaycard is a multi-brand credit card and consumer lending business which also processes card payments for retailers and merchants and issues credit and charge cards to corporate customers and the UK Government. It is one of Europe's leading credit card businesses and has an increasing presence in the United States and South Africa.

See the top forecasts for the Barclaycard division

See our full analysis and $18.30 price estimate for Barclays



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: BAC , BCS , C , RBS , UBS

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