Key Performance Ratios for Barclays PLC
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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