|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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