Questioning the ‘brilliant’ financial disclosure by Barclays...
Add to this the fact that even the cost to PBIT and the cost to PAT ratios have increased by 5% and 16% respectively, the issue of operational efficiency also casts a dark shadow upon Barclays’ performance. Thus, the underlying fact is that Barclays’ ‘happy’ revelation is all due to some unusual gains and earnings on certain ‘abnormal’ deals that won’t make their way into its books every year.
Agreeing to the thought, even an analyst at Brand Finance avers, “The bank has been criticised for not ‘marking down’ asset value and the investors are sceptical about banks like Barclays for declaring toxic assets!” Thus it is quite clear that the Barclays’ FY‘08 audited figures do not paint the real picture! Now for the ‘real’ asset – its shares on the NYSE have tumbled by 85.6% since December 31, 2007 to touch just $5.83 as on February 17, 2009; its Mcap falling by 80% during the same interval – all this despite the ‘extraordinary’ result announced?! Talking about the bank’s immediate agenda, an optimistic John Varley, CEO, Barclays explains, “Our immediate objective at Barclays is... manage the impact of the credit crisis...” Yes, we wish you all the best in your endeavours, but seriously Sir, sometimes even strong financials can have little impact on stock fortunes; and as for your shareholders, the ‘positive’ earnings may just have become a matter to mourn over!
Agreeing to the thought, even an analyst at Brand Finance avers, “The bank has been criticised for not ‘marking down’ asset value and the investors are sceptical about banks like Barclays for declaring toxic assets!” Thus it is quite clear that the Barclays’ FY‘08 audited figures do not paint the real picture! Now for the ‘real’ asset – its shares on the NYSE have tumbled by 85.6% since December 31, 2007 to touch just $5.83 as on February 17, 2009; its Mcap falling by 80% during the same interval – all this despite the ‘extraordinary’ result announced?! Talking about the bank’s immediate agenda, an optimistic John Varley, CEO, Barclays explains, “Our immediate objective at Barclays is... manage the impact of the credit crisis...” Yes, we wish you all the best in your endeavours, but seriously Sir, sometimes even strong financials can have little impact on stock fortunes; and as for your shareholders, the ‘positive’ earnings may just have become a matter to mourn over!
Source : IIPM Editorial, 2012. An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links IIPM : The B-School with a Human Face
