Key Performance Ratios for Barclays PLC

Ratio 2012 2013 Comments
Return on Average Shareholders’ Equity 10.6% 7.8% Ø  This is the amount of income returned as a percentage of shareholders’ equity.

Ø  It means that Barclay’s ability to use shareholders’ investment to generate money declined (Bull, 2007).

Return on Average Risk Weighted Assets 1.6% 1.3% Ø  This is the minimum capital required by financing institutions as a percentage of assets weighted by risk.

Ø  Barclays was able to reduce the percentage of loans it accessed using risk weighted assets (Fridson & Alvarez, 2011).

Ø  It is an indication that Barclays had a better performance in 2012 relative to 2013.

Cost Income Ratio 61% 65% Ø  The ratio measures the percentage of operating costs over operating income.

Ø  It is evident that much of the operating revenues in both years went into meeting operating costs.

Ø  It is also an indication that the 2012 performance was better than 2013(Bull, 2007).

Earnings Per Share £ 22.4 £16.2 Ø  The ratio measures the portion of a firm’s profits that is allocated to common stock shares.

Ø  It may be used to assess the profitability of a firm (Fridson & Alvarez, 2011).

Ø  It follows that Barclays had a better performance in 2012 than in 2013.


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