Barclays has a strong customer base of almost 20 million accounts. It enjoys adequate infrastructure in technology, and is well poised to take off from its strong platform. The UK market is highly competitive and sophisticated, so stock market circles expect Barclays to make rapid strides abroad once it moves in this direction decisively.
Barclays as a bank has another advantage which stock market veterans think of highly: it has a broad portfolio of products and services, designed to appeal to a variety of customer segments. The profit potential of milking its expertise in additional territories is very attractive from a stock market point of view. Barclays has a sound position in Internet banking, and there is enormous scope to leverage this with presence on the ground in new markets. Services for high net worth individuals, and systems geared for small enterprises are other areas from which the bank can realize substantial revenue growth without serious additions to its efficient cost structure. The U.K. economy has seen rapid and consistent strides in the home property market, and the wide experience of Barclays in insurance for this key sector is highly relevant in many of the new countries where Barclays can expand.
It would appear that Barclays could be a possible target for Merger and Acquisition activity, though this may be more aimed at some entity wishing to make an entry in the lucrative Great Britain market, than because someone wanting to use the systems of Barclays in other countries. The stock market stands to gain which ever way the full potential of Barclays is realized. Therefore, this is a bank with excellent appreciation potential for its stock market supporters!