University of Central Punjab

C O U R SE NAM E: E- BA NK I NG A P P LI CATI O N S Course Code: FIN5413

T O : P R O F. N A U M A N D A A R
From: Muhmmad Bilal Ashraf Muheeb Ahmad Tahir Ahmad Adil Maqsood Nimer Ahmad L1S08MBBF2016 L1F07MBBF2040 L1S08MBBF0012 L1S08MBBF2025 L1S08MBBF2004

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Preface

This project was assigned by our respected teacher Prof. Nauman Daar to elaborate role of EBanking in Pakistan Banking Industry and a case study of a bank with its growth and performance and recommendation under observing bank so we approved Barclays Bank for conducting study, he give us all information about the project in which everything is mentioned that what kind of project he demand from us. At earlier we think that it is an easy task because most of the contents required by the teacher were understood but as we started working on the project we realized that it¶s a tough job. Whatever we have tried to include based on latest data given by SBP and Barclays Bank in the project. In this time period we are came in touch with Bank with different aspect and by making this professional project we gain a lot of knowledge from different dimensions. Further that it was assigned by our instructor to discuss all online banking product of under observation bank and its portal as well as its growth and performance. So we take analysis of its performance and growth with its online products. In this project all products and services are described that are provided by Barclays in the banking industry of Pakistan. During the preparation of the project, we have faced many difficulties about data collection and collecting facts and figure related to Barclays. Despite of all these problems and tough task, the whole work was very worth full. The whole project was very interesting and we have learned a lot and knowledge.

Muhammad Bilal Ashraf

Muheeb Ahmad

Tahir Ahmad

Adil Maqsood

Nimer Ahmad

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Acknowledgement

³After Almighty Allah, who is very merciful and most beneficial to us, we would like to thanks our subject teacher Prof. Nauman Daar who helped us in every step or whenever we faced any problem on the ladder regarding the preparation of the project. He never disappoints us on any step which make hurdle for further proceeding. We pay our deepest gratitude to Barclays Bank and SBP (State Bank of Pakistan) Official web sites and all those persons and sites who helped us in getting primary as well as secondary data and information to particular problem regarding the project for implementation point of view´.

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Table of Contents Role of E-Banking in Pakistan ................................................................................................. 5 Barclays Bank: ........................................................................................................................ 10 Barclays Bank in Pakistan .................................................................................................. 10 Growth & Performance of Barclays: ..................................................................................... 11 Growth:................................................................................................................................ 11 Performance: ....................................................................................................................... 15 Overall Performance: ...................................................................................................... 15 Key performance indicators ............................................................................................ 22 Performance in Pakistan: ................................................................................................ 24 Barclays Internet Banking: .................................................................................................... 32 Features and Benefits: ......................................................................................................... 32 Protection Cover: ................................................................................................................ 33 Eligibility: ............................................................................................................................ 33 Browser Requirement: ........................................................................................................ 33 Registration: ............................................................................................................................ 34 Registration Form: .............................................................................................................. 34 Login Process: ......................................................................................................................... 35 Online Services: ...................................................................................................................... 36 Account Statement: ............................................................................................................. 36 Account Activity Log: ......................................................................................................... 36 Cheque Status:..................................................................................................................... 36 Stop cheque Payment: ......................................................................................................... 37 Funds Transfer: ................................................................................................................... 37 Payee ID:.............................................................................................................................. 38 Setup Standing Instruction: ................................................................................................ 38 Term Deposit: ...................................................................................................................... 39 Finance Facility: .................................................................................................................. 39 Tips for Making Payments Online: ........................................................................................ 39 Branchless Banking Product: ................................................................................................. 40 Recommendation for Improvements: .................................................................................... 41 Bibliography: .......................................................................................................................... 41

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Role of E-Banking in Pakistan
Globally banking is no longer confined to the four walls of a branch. Many countries are far ahead of the facilities being available in Pakistan. The initiative in e-Banking in the country was taken a bit late, but now focused efforts are being made to catch up with rest of the world. In this regard, Muslim Commercial Bank (MCB) recently organized 'Pakistan e-Banking Conference'. It was co-sponsored by ABN-AMRO Bank, IBM, Teradata and local newspaper. Dr. Ishrat Husain, Governor State Bank of Pakistan was the chief guest. The level of low banking, a few years back, was confined to the four walls of branch. With the entry of private banks, having limited number of branches, investment in technology was chosen, as alternative, to overcome this deficiency. The advent and common use of Internet, leading to ecommerce, forced the banks globally to incorporate e-banking. Pakistani banks are still far behind their global counter parts. One such example is complete lack of merchant accounts in Pakistan. However, lately a task force was established to study and implement formation of Electronic Clearing House (ECH). Simultaneously, the local banks also went for on-line banking, though still not a norm. Another step forward was installation of ATMs by the banks. While some banks have their own ATMs, some other banks started using a dedicated network. In this system an ATM card holder of a particular bank could use teller machines installed by all the sponsors of this network. The system is working to a satisfactory level. Though efforts are being made to increase the number of on-line branches, it is still a capital intensive proposal. It is getting popular in urban areas, but has not become common in rural areas, mainly due to low literacy level in the country. However, some analysts believe that with the passage of time, confidence in the system and increasing use, traffic to branches in urban areas will go down considerably. A factor which is the key issue in e-banking is low penetration level of computers in Pakistan. The other factors, not allowing the people who have computers and Internet facility, were lack of services being offered by the banks, legal framework and concerns about the security. A landmark step in this direction is the promulgation of the Electronic Transactions Ordinance 2002. This Ordinance provides legal recognition to digital signatures and documentation reducing the risks associated with the use of electronic medium of business. One factor prohibiting use of the newly offered services is, its high cost. The banking sector terms this nominal, keeping in view the level of convenience. Saying this, they still believe that cost can go down further with the increased use of these facilities. It is also believed that while the use of these facilities is low due to apprehensions about security, clients take refuge behind high cost.

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ATM:
At over 30%, Pakistan has highest growth rates for ATM installations in the world. This growth is however threatened due to industry slowdown as well as consolidation through M&A activity. This is not great news considering our ATM density is onefiftieth of the West and even one-fifth of China. See the graph for better comparison.

Internet Banking (IB)
The first web-based IB applications came in early to mid 90s. At first these provided informational services but by 1998, many were providing domestic and international fund transfers and bill payments. By 2000 these were standard features for any bank in the West. Now these systems provide all services provided in at a branch - mortgages, auto loans, payroll, brokerage, IRAs, 401K, etc. In Pakistan, 75% of the surveyed banks offer IB. However, some provide informational banking only yet others provide intra-bank transfers and 5 utility bill payments. That¶s as feature rich as it gets. Why are we offering what others offered 15 years ago? Trends The future for IB is very promising. For informational banking, the growth last year was 100%, with daily volumes growing from 9,000 to 19,000. Transaction volumes grew at 50% last year from PKR 8.3 Billion to PKR 12.2 Billion. An interesting element is amount per transaction; compared to average ATM withdrawal of Rs. 6,500 and average POS transactions of Rs. 4,000, IB averages at Rs. 33,000. This suggests that many higher value corporate transactions are taking place. What can banks do to attract small consumer transactions? Internet Merchants E-Commerce numbers of Pakistan are dismal. With 10 Million internet users and 6 Million debit/credit cards, there are a total of 19 Internet Merchants with monthly processing of PKR 30 Million ($ 375,000). Waqar electronics in Karachi does more business every month. Internationally, compare this to monthly sales of $ 1.5 Billion by just Amazon.com. Why stakeholders have not encouraged this mode of payments?

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Facts and Figure by SBP:
Total number of ATM cards was 0.191million reported by banks for Q2 FY07-08 as compared to 0.158 million in the previous quarter showing an increase of 20.9% over the previous quarter. There are few banks which still offer ATM only cards to their account holders.

Transactions through ATMs
ATMs transactions during the Q2 FY07-08 registered an increase of 3.2% while their amount increased by 5.2% as against an increase of 11.2% and 18.1% respectively in the previous quarter. Apart from cash withdrawal ATMs are also used for inter/intra bank funds transfer, cash deposits, payment of utility bills etc. On average, 70 transactions were executed per day per ATM and average transaction size was Rs. 6,632. Growth in the use of ATMs since Q1 FY07 is given in Fig. 5

Fund Transfers
During Q2 FY07-08, account-to-account funds transfer transactions made through ATMs were 0.163 million, showing an increase of 22.2%. The value of such funds transfer was Rs.8.8 billion, depicting an increase of 27.5%. Funds transfer through ATMs mostly includes intra-bank transfer and small portion of inter-bank funds transfers. The inter-bank fund transfer is only offered by 11 banks on 1Link switch. Besides ATMs, inter/intra bank fund transfers can also be executed through internet.

Cash Deposits
Quite a few banks are providing the facility of cash deposit through ATMs. The mechanism for cash deposit is envelope based; i.e. Cash is not directly fed into the machine. During Q2 FY0708 only 2,190 transactions of cash deposit through ATMs were reported as compared to 1,930 transactions during the previous quarter, showing an increase of 13.3% in number and 24.7% increase in the amount of transactions from the previous quarter.

Utility Bills Payment
During Q2 FY07-08, banks reported 6,430 transactions of Utility Bills payment through ATMs involving an amount of Rs.8.3 million as compared to 6,210 transactions valuing Rs.8.3 million in the previous quarter. This registered an increase of 3.6% in numbers but a decrease by 0.1% in amount of transactions. Banks were advised through Payment Systems Department¶s guidelines issued on December 18, 2006 to offer utility bills facility across ATM network in phases.

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E banking transactions grow 32% to Rs 13.9 Tln in FY08
Electronic Banking (E-banking) is getting increasingly popular as the number and value of E-banking transactions in the country have shown a significant growth in the last fiscal year. According to a Report titled µRetail Payment Systems of Pakistan¶ (Paper-based and E-banking) of the State Bank of Pakistan, a total of 124.6 million E-banking transactions were recorded valuing Rs 13.9 trillion during the last fiscal year (FY08), showing a growth of 25.4% in numbers and 32.3% in amount when compared with the fiscal year (FY07). During FY08, the volume and value of e-Banking channels (POS, Internet & Call Centre/IVR, and Mobile) transactions in the country reached 20.0 million and Rs 120.1 billion depicting an increase of 15.6 percent in numbers and 31.9 percent in value as compared to 46.0 percent in numbers and 63.8 percent in value in the previous fiscal year. According to the Report, the quantity of active (in-use) debit / credit cards during FY08 reached at 6.7 million, which shows an aggregate growth of 15.8 percent compared to 53.7 percent increase in the previous fiscal year. The quantity of credit cards has in fact decreased by 8.9 percent as compared to 74 percent increase in the previous fiscal year reaching at 1.5 million. In contrast, the debit cards registered a growth of 24.7 percent as compared to 45.3 % increase in previous fiscal year and stood at 5.0 million. The Report pointed out that the total number of Automated Teller Machines (ATMs) during FY08 reached at 3,121 registering a growth of 21.0 percent as compared to 17.0 percent increase in the previous fiscal year. The volume of Real Time Online Branches (RTOB) during FY08 reached at 5,282 and recorded a growth of 26.4 percent as compared to 5.0 percent decline in the previous fiscal year. The volume of Point of Sales (POS) reached at 55,853 showing a growth of 21.0 percent in number as compared to 4.0 percent increase in previous fiscal year. According to the Report, during FY 08 the volume and value of ATM transactions in the country reached 67.9 million and Rs 453.0 billion showing an increase of 31.8 percent in numbers and 43.2 percent in value as compared to 47.1 percent increase in numbers and 49.9 percent in value in the previous fiscal year. Moreover, the volume and value of RTOB transactions in FY08 reached 36.9 million and Rs 13.3 trillion showing an increase of 19.9 percent in numbers and 32 percent in value as compared to 46.2 percent increase in numbers and 49.0 percent in value in the previous fiscal year. The Report said that the volume and value of paper-based transactions in the country during FY08 reached 334.4 million and Rs.137.4 trillion registering an increase of 3.1 percent in numbers and 20.9 percent in value as compared to 48.1 percent increase in numbers and 29.4 percent in value in the previous fiscal year. According to the Report, the overall total retail payments in the country during FY08 reached at 459.0 million and Rs.151.3 trillion respectively registering an increase of 8.4 percent in number and 21.8 percent in value as compared to 17.2 percent increase in numbers and 35.0 percent in value in FY07. It may be mentioned here that retail payments are mainly made by consumers and between commercial counterparties to purchase goods and services. At the retail level, most transactions use paper based instruments. However, electronic mode is also getting momentum with the
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passage of time. Retail payments in Pakistan are comprised of various paper based and electronic instruments from conventional cheques to modern smart cards.
26% From the survey on websites of 44 banks, it Transactional becomes clear that 04 out of these have no websites websites at all. Thirty seven banks use Banks without websites internet as a medium for extending 61% 13% information to their customers and have informational websites. While remaining, eight banks are exploiting internet to extend both informational as well as for transactional services also. While, the category of denationalized commercial banks demonstrate highest banks website functionality as three out of four banks of this category offer transactional internet services and the remaining one bank¶s website extends informational services. A sector wise analysis of banking also shows that all eight PSCBs have websites with five of these having informational websites and remainder three with transactional websites. The foreign banks sector shows also poor performance as only 2 out of 9 banks operating are offering transactional website facility while remainder are using informational website channel. While out of specialized banks, only 9 out of total 13 are using informational websites while remaining have no websites. Aggregate evaluation score of« Then when we see at foreign bank category again, Citibank and Habib 60 AG Zurich are the only two banks 39 38 38 providing internet banking, three 40 public sector commercial banks 20 18 23 19 20 11 namely, Habib, UBL, BOP offer internet banking. While rest of banks 0 have some sort of informational CITI HB MCB ACB MET HBL UBL BOP websites. It is interesting to tell her that Zurich all of foreign banks operating in Pakistan are providing transactional website facility in other regions of the world, but in Pakistan either they think Pakistani market not enough ripe for I-banking and thus their services are limited to informational websites in Pakistan. A comparative analysis of individual banking websites puts Citibank as leading with gross score of thirty nine followed by a score of 38 each by MCB and Habib AG Zurich. MCB though being a domestic private bank matches the performance of its foreign competitors on this web front perhaps due to its early adoption of technology and its aggressive deployment to achieve its goals. We have also seen that all banks have more or less same score on ³performance´. While, little variation exist on ³Information´, ³Legal´, & ³Aesthetics´. The ³ease of use´ and ³others´ show a slight variation. However, the order component contains most of elements to be assessed therefore a separator of banks on this web front. As, ³order´ contains most of value addition service of banks to their customers.
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Barclays Bank:
Barclays plc is a British financial services firm operating worldwide. It is a holding company that is listed on the London and New York stock exchanges, and was listed on the Tokyo Stock Exchange until 2008. It is also a constituent of the FTSE 100 Index. Barclays PLC is ranked as the 25th largest company in the world by Forbes Global 2000 (2008 list). According to Data monitor, by market share, Barclays is the largest financial services provider globally with $3.7 trillion of assets. It is the second largest bank in the United Kingdom and the world based on asset size. Its share price fell by 90% in the year to 23 January 2009, but has recovered substantially, leaving it higher as of 3 September 2009 than it had been a year before. The bank's headquarters are at One Churchill Place in Canary Wharf, in London's Docklands, having moved there in May 2005 from Lombard Street in the City of London.

Barclays Bank in Pakistan
The State Bank of Pakistan in December 2007 granted Barclays the licence to operate in the country. Barclays Bank Pakistan commenced operations in July 2008. It serves its customers and clients across the country through a network of 30 ATMs and 15 branches, including five branches in Lahore, four in Karachi, and one in Islamabad and two in Rawalpindi. The Barclays network has extended its presence to the rural centres of Mangla, Rawat and Akora Khattak with a branch in each of these locations. In Pakistan, the Barclays businesses include: y Retail Banking: offers customers a range of personal accounts, investment options, consumer loans, Bancassurance and Premier Banking products and services y Corporate Banking: offers business banking services tailored to meet the needs of corporate clients, including cash management, loans, savings and risk management, supported by a dedicated Relationship Manager. Corporate Office Barclays Bank PLC, Pakistan 2nd Floor, Dawood Centre, Near PIDC M.T Khan Road Karachi 75530 Pakistan. Tel: (021) 111-105-555 Fax: (021) 5634050
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Growth & Performance of Barclays:

Growth:
Barclays is a United Kingdom based financial services group that places its focus within the areas of banking, investment banking and investment management. Barclays has operations running throughout sixty countries with major points of interest in Europe, the United States, Asia, and Africa. Barclays is the fourth largest bank in the United Kingdom. The banks headquarters are at Lombard Street in the City Of London. Barclays currently employs 78,000 employees and Barclays currently owns more stock (3.9%) than any other stockholder in the largest company on the planet, Exxon Mobil. The fundamental principal to Barclay¶s philosophy is to include the interests of all of their shareholders from customers, employees, shareholders and the wider community in route to providing a valued and prosperous circumference of satisfied stakeholders. A high priority is placed on dealing with three lines of operations. Firstly the banking division that provides up front service and customer attention to United Kingdom retail and business banking customers. The UK retail banking side courts some for 14 million accounts, servicing around 566,000 customers, while the business side lends service to primarily middle to larger sized businesses of around 180,000 customers. A second major focus for Barclays is Private Clients. Barclays stands today as the largest retail stockbroker in the United Kingdom, with clients mainly in the UK and the continental Europe. The gist of the client makeup is high net worth and clients of corporate billing. Third is the International Retail and Commercial Banking sector of Barclay¶s business. Barclays has some 800 international branches placed throughout Europe, Africa and the Middle East, which provide a large array of services including current accounts, savings, mortgages and loans. Others smaller areas of focus for Barclays are Barclays Capital, Barclaycard, Barclay Global Investors and Woolwich. It is within these areas that Barclay is placing a larger focus towards growing throughout the international markets. Barclays Capital is a global investment bank which provides advice and solutions to the financial and risk management needs of corporate, institutional and government clients. Barclaycard has some 11.2 million UK customers with 2.9 million cards issued internationally. This happens to have been the UK's first credit card and also the leader in card services provided over the internet 800,000 customers using the online account services. Barclaycard operates internationally throughout Europe, the United States and Africa and has recently made efforts to expand even more into the United States with the acquisition of the US credit card, Juniper Financial Corporation in December 2004. Barclays Global Investors is a world leader in providing investment management products and services and is also a global leading asset manager. In 1971 Barclays Global Investors created the first index strategy and followed this in 1978 with the first quantitative active strategy. Barclays Global Investors holds some 68 million British pounds in Exchange Traded Funds with over 100 funds in ten international markets for individual and institutional investors. Lastly, Woolwich is a mortgage business that was acquired by Barclays in 2000. It has been
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transformed into a division that deals largely with home financing and lends its branding to Barclays mortgages. Barclays has placed a great deal of interest in international growth beginning as far back as 1925 with the merger that began the formation of Barclays International Operations of three banks: the Colonial Bank, the Anglo Egyptian Bank and the National Bank of South Africa. This pushed Barclays into Africa, the Middle East and the West Indies. By the 1980s Barclays became the first bank to file with the Securities and Exchange Commission in the U.S. and by 1986 was the first British bank to be listed on the Tokyo and New York Stock Exchanges. Barclays Capital formed around the same time establishing an investment banking operation that today manages larger corporations and institutional businesses. In the mid 1990s Barclays formed Barclays Global Investors through the purchase of Wells Fargo Nikko Investment Advisers which was combined with Barclays BZW Investment Management. Barclays has also kept pace with innovation with concepts such as online customized servicing through Barclays Private Bank and Premiere Banking. These steps have kept Barclays competitive in the banking industry and guided them towards a promising path in international growth. Foremost to continually compete internationally, Barclays must strive to perform customer service at an utmost level of excellence. This will promote Barclays worldwide as a business that can be relied upon time after time for small individual accounts as well as huge corporate accounts. To accomplish this, Barclays must identify their customer groups and the needs associated with each particular group and develop products and services that will be of great value to their customers. The practices that have worked in the past must be reconfigured to work for years to come and keep Barclays updated with the high changing IT world. This will call for new investments into new levels of technology that can help offer higher levels of service to its customers. Along with the apparent increase in speed that IT will allow Barclays to accomplish routine tasks, technology will also reduce risk of errors and fraud. This leads straight into a second integral point of interest for Barclays. The need to place major investments into the most modern and efficient IT systems available that enables top of the line business transactions to transpire unhinged. IT will allow up to date information to be at the fingertips of Barclay¶s managers, giving managers a huge advantage when it comes to making decisions and in pin pointing groups of customers that can have a high added value to Barclays. The fine-tuning of IT will also eliminate weaknesses within Barclay¶s practices, preventing failures that effect customers and thus reducing excessive and unnecessary costs. Barclays has been very successful as of late in carrying out its desired tactics. As of February 2005, Barclays had recorded record net profits with a large amount of its success attributed to its investment ability. Net profits, according to Barclays scoured upward some nineteen percent in 2004 hitting 3.27 billion pounds, which translates to 6.08 billion U.S. Dollars and 4.76 billion Euros. Along with profits, revenue soared to 13.9 billion pounds, up from 12.4 billion pounds. This strong increase in Barclay's position stalemated, at least for the time, the talks of a takeover that have held Barclays under scrutiny for quite some time now. According to Barclays, its
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increase in its 2004 profits can be tied largely to its ability to reduce the number of bad debts and the growth within Barclays Capital, its investment banking division. Barclay's 2004 increase in profits follows swiftly on the feet of its 2003 increase of some twenty percent in pretax profits. Huge investment strategies that have led to this increase in profits include the acquirements within its Barclaycard card business. The beginning of February 2005 brought two swift and powerful movements by Barclays, the first being a card issuing agreement with ForeningsSparbanken of Sweden, targeting the Nordic and hopefully the Eastern European markets. This move was followed shortly after by its US issuing business Juniper, mentioned above, acquiring a credit cards portfolio including an undisclosed number of credit card accounts from Oregon Community Credit Union. This happened to be Junipers first transaction since Barclays bought them the previous year. Barclays has placed its sights on transforming Barclaycard into an international brand in light of recent pressures domestically that include higher funding costs and a brutal interest rate environment. With growth on its mind, Barclays has set out to create an international business that if forecasted correctly, the income generated in its Barclaycard division will be of equal value internationally as well as domestically by 2013. This is a hearty goal for as of the present, Barclays stands at a mere 8 million pounds in pre-tax income that encompasses the entire international business, compare that to the pre-tax income of 793 million pounds in 2004 for its domestic business alone. However, from 2003 Barclay's international pre-tax income rose one hundred percent from 4 million pounds. Barclays has also placed strategic action in growing throughout Europe. Barclays announced an investment of 76.5 million pounds that will gain them a fifty percent stake within a joint venture with FSB that will be headed in Stockholm, Sweden. Chief executive of Barclaycard, Gary Hoffman, said the venture will provide a powerful partnership that, "combines FSB's customer and distribution strengths in Scandinavia with Barclaycard's leading-edge risk management and customer acquisition skills." However, despite Barclay's desire to establish Barclaycard as a valued global brand name, the FSB name will probably brand the new venture. This venture seems to have a great target, as the Nordic region is very low in cards per adult. According to Barclays there are only 0.1 cards per adult in Sweden and 0.4 in Norway; this compares to 1.5 cards per adult in the UK. Demand is rising though in the Nordic region, as according to the Swedish central bank that credit cards account for sixteen percent of the proportion of outstanding consumer credit balances in Sweden, this up some six percent since 2002. In the short-term the venture hopes to achieve growth throughout the existing 3.6 million FSB customers that currently do not use an FSB credit card, but for long-term goals Barclays has its sights set on growth across the entire Nordic region. FSB has already made a move that can allow Barclays and Barclaycard greater access into the East European market, by making an offer for the remaining forty percent of Estonia's AS Hansapank that it currently does not own; Hansapank holds a very strong position within the Baltic region. If FSB is successful in accumulating the full ownership of Hansapank, the thought is that the move will allow for a maximizing in operating synergies along with a reduction in funding costs.
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Data from Barclaycard1 Global Payment Acceptance shows payments made on credit and debit cards were up 7.1% in February compared to the same month last year. The increase follows on from figures that showed that credit and debit card spending was up 3.6% in January 2010 compared to January 2009. Whilst February 2010 showed an increase over the previous year, on a month-by-month basis, credit and debit card spending declined slightly by 2.5% from January, in line with expectations. The Barclaycard Retail Card Spending Index is based on spending on all credit and debit cards across a wide range of retail sectors, at retailers that use Barclaycard to process their credit and debit card transactions. Barclaycard Global Payment Acceptance processes payments for 87,000 businesses in the UK both physically and online ± about a third of the market. Commenting on the data, Stuart Neal, Head of UK Payment Acceptance said: ³The numbers show that things are looking up for retailers this year. The small drop from last month is typical of what we see at this time of year and is caused by the residual effects of the January sales and households returning to a more regular spending pattern.´ Barclaycard, part of Barclays Global and Retail Banking division, is a leading global payment business which understands the needs of both purchasers and sellers. It enables retailers and merchants to accept cards, helps customers make payments through card, contactless and mobile applications as well as extending credit to consumers. The company is one of the pioneers of new forms of payments and is at the forefront of developing viable contactless and mobile payment schemes for today and cutting edge forms of payment for the future. It also issues credit and charge cards to corporate customers and the UK Government. Barclaycard partners with a wide range of organizations across the globe to offer their customers or members payment options and credit. In addition to the UK, Barclaycard operates in the United States, Europe, Africa and the Middle and Far East.

Key facts published in February 2010; - Number of UK customers: 10.4m - Number of International customers: 10.8m - Number of retailer/merchant relationships: 87,000.

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Performance:
Overall Performance:
2009 Barclays completes its acquisition of PT Akita, a privately owned bank with ten outlets in three cities in Indonesia. The move makes Indonesia the 15th country to become part of Barclays Global Retail and Commercial Banking Emerging Markets Business Unit. Barclays Capital competes the integration of the North American businesses of Lehman Brothers which Barclays acquired in September 2008. Barclays announces its 2008 Full Year Results, reporting profit before tax of £6.1bn. Barclays opens for business in Pakistan, with branches in Karachi, Lahore and Islamabad. The launch is the 14th emerging market Barclays Global Retail and Commercial Banking has entered since March 2007. Barclays acquires Lehman Brothers North American investment banking and capital markets businesses. Barclays acquires leading Russian bank Expobank. The bank becomes part of Barclays Global Retail and Commercial Banking Emerging Markets Business Unit. Barclays is the first bank in the UK to announce a mass roll-out of contactlessenabled debit cards. From March 2009, most Barclays debit cards that are issued or reissued will have contactless technology built in. Barclays is the first bank in the UK to give its Local Business customers access to an online service that checks supplier credit ratings. Absa, majority-owned by Barclays, becomes the first bank in South Africa to reach one million internet banking users.

2009

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2007

Barclays increases its position in Asia with investment from two major shareholders in the region ± China Development Bank and Singaporeheadquartered investment firm Temasek. Barclays opens three new branches in India, including a 24-hour flagship outlet in Delhi. Barclaycard Breathe is launched, the first UK credit card which rewards customers for making environmentally aware purchasing decisions. Barclays is the first bank in France to be awarded the ISO 14001 standard for complying with international environmental management. Absa, majority owned by Barclays, is the first South African bank to publish a Customer Charter, putting more than eight million customers at the centre of its business. The wealth management division of Barclays is relaunched under the Barclays Wealth brand. In an industry first, Barclaycard launches OnePulse, a credit and cashless payment card which incorporates cashless Oyster card technology, used on London¶s public transport system. A benchmark year in which 50 per cent of Barclays profits are made outside the UK. Barclays acquires a majority stake in Absa, one of South Africa¶s leading financial services organsations. Barclays moves its world headquarters from Lombard Street in the City of London to the new 1 Churchill Place building in Canary Wharf. Barclaycard acquires the Juniper Financial Corporation, one of North America¶s fastest-growing credit card issuers.

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2003

Barclays purchases wealth management firm Gerrard Management Services Ltd, to become the UK¶s largest private client investment manager. Banco Zaragozano, one of the largest private banks in Spain, is acquired, making Barclays the country¶s sixth largest bank. Barclays partners with five international banks to launch the first ever global ATM alliance, providing over 40 million customers with free access to member banks¶ ATMS. Barclays acquires Woolwich, a leading mortgage bank and former building society. Barclays launches its Online Banking service. Barclays is estimated to be the most valuable brand in the UK, worth more than £5.3bn. Barclays is the first UK bank to offer customers a mortgage in euros to buy a home in the UK. Barclays opens the UK¶s first drive-through ATM, near Heathrow Airport. Barclays Capital is established, following the sale of BZW's UK and European Equity and Mergers & Aquisitions Advisory business to Credit Suisse. Barclays launches a PC banking service partnership with Microsoft using Money 97 software. In the same year Barclays also launches the service for small businesses. Barclay purchase fund manager Wells Fargo Nikko Adviser. The business is integrated with BZW Investment Management to form Barclay Global Investor. Barclays opens its 3,000th ATM in the UK and has the largest network of ATMs in the country.
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Barclays is the first financial institution to open a website on the internet ± Barclaycard Netlink. Barclaycall, Barclays telephone banking service is launched. Barclays opens its first Premier Banking office, at 54 Lombard Street, London. Barclaycard is the first UK brand to sponsor a non-fiction TV programme, travel show µWish You Were Here¶. Barclays opens its first branch in India. Barclays Business Centres open across the UK ± the country¶s largest business banking network. Barclays announces its sponsorship of the Football League Championship in the UK. Barclays Connect is launched, the UK¶s first debit card. BZW is created from the merger of Barclays Merchant Bank/ Barclays Investment Management, De Zoete Bevan and Wedd Durlacher Mordaunt & Co. It¶s the forerunner to today¶s Barclays Capital. Barclays is the first UK bank to have its shares listed on the New York and Tokyo Stock Exchanges. Barclays UK and Barclays International are merged to form Barclays PLC. Barclays launches its Premier Card. Barclays Bank Ltd becomes Barclays Bank PLC.

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1981 1981

A Barclays Representative Office opens in Beijing, China. Barclays is the first foreign bank to file with the Securities and Exchange Commission in Washington DC, USA. Barclays is the first UK bank to introduce Personal Bankers to some of its branches under a pilot scheme. The following year the programme is extended nationwide. Barclay bank, a new auto-teller service, is launched. It uses plastic cards instead of paper vouchers. Barclays Business Advisory Service is launched. Barclaycard is the first UK credit card to use TV advertising. Barclay loan is launched, allowing Barclays to compete in the consumer instalment credit market. A Barclays Representative Office opens in Tokyo, Japan. Barclays unveils the world¶s first ATM, offering µBarclaycash¶ from its branch in Enfield, London. Barclaycard, the UK¶s first credit card, is launched. Barclays opens the UK¶s first computer centre for banking, in London. In the same year Barclays introduced automated branch book-keeping at its branch in Cavendish Square, London. Barclays appoints the UK¶s first female branch manager, Miss H M Harding, at its Hanover Street branch in London.

1977

1975

1973 1972 1971

1969 1967

1966 1961

1958

19

1956

A Barclay¶s promotional film for a savings campaign in West Africa wins the Grand Prix d¶ISAS at the Cannes Film Festival. Barclays Ideas Committee is introduced, inviting colleagues to share their suggestions for the business. Barclays Overseas Development Corporation is launched. From 1945-1948 Barclays offers refresher courses for staff returning from war service and a Staff Training School is established in Wimbledon, London. The Union Bank of Manchester is absorbed by Barclays. A Grant of Arms is obtained from the College of Arms for the black spread eagle with three crowns to be used as Barclays official coat of arms. The first book-keeping machines are introduced to Barclay¶s branches.

1946

1946 1945

1940 1937

Late 1920s

1925

Barclays Bank (Dominion Colonial and Overseas - DCO) is established by the merger of the Colonial Bank, the Anglo Egyptian Bank and the National Bank of South Africa. This goes on to add businesses across Africa, the Middle East and the West Indies. Barclays Bank (Overseas) is incorporated. The name later changes to Barclays Bank (France). Barclays Sports Club is formed. The business amalgamates with the London Provincial and South Western Bank to become one of the UK¶s µbig five¶ banks. Barclay & Company Limited becomes Barclays Bank Limited.
20

1922

1919 1918

1917

1916 1905 1902 1896

The organisation takes over the United Counties Bank in the Midlands. The bank expands, acquiring the Consolidated Bank of Cornwall. The business obtains a listing on the London Stock Exchange. The company joins 19 other private banking businesses to form Barclay & Company Limited, with 182 branches and deposits of £26m. The company builds a new banking house in Lombard Street. James Barclay, John Freame¶s son-in-law, becomes a partner in the business. Freame and Gould move to premises bearing the sign of the Black Spread Eagle at Lombard Street, London. At the time, signs were commonly used to mark buildings instead of numbers, as most people were unable to read. John Freame and Thomas Gould start trading as goldsmith bankers in Lombard Street, in the City of London.

1864 1736 1728

1690

Barclaycard wins at the 2010 Cards International Awards
Best Commercial Credit Card Issuer: Barclaycard Commercial Best Innovation in Loyalty Programme: Barclaycard Freedom

Barclaycard has taken two prizes at the 2010 Cards International Awards for its Visa CodeSure card and its innovative loyalty programme, Barclaycard Freedom. Barclaycard Freedom is the broadest retail rewards scheme the UK has ever known: a rewards coalition of unprecedented size and scope which opened loyalty up to small retailers alongside household names. Barclaycard Freedom was automatically available to eight million Barclaycard holders at launch on 17 March 2010, and more than 30,000 retailers of all sizes were invited to be partners in the scheme. It is a first in the UK market, bringing a new level of simplicity and convenience to the concept of loyalty and rewards. Barclaycard Commercial¶s Visa CodeSure Card is an industry first which expands card functionality beyond payment. The card combines a standard Visa corporate charge card with additional identity protection functionalities. A keypad, LCD screen and battery are embedded into the back of each card, allowing it to become the platform for secure applications such as extranet access.
21

Key performance indicators
Profit before tax Profit before tax is one of the two primary profitability measures used to assess performance and represents total income less impairment charges and operating expenses. Profit before tax is a key indicator of financial performance to many of our stakeholders. Excluding movement on own credit, gains on acquisitions and disposals and gains on debt buybacks, Group profit before tax increased 243% to £5,634m from £1,643m. Total Group profit before tax is represented here alongside profit before tax from continuing operations to aid comparison. Total profit before tax 2007 £7,076m 2008 £6,077m 2009 £11,642m

Profit before tax from continuing operations 2007 £6,223m 2008 £5,136m 2009 £4,585m

Economic profit Economic Profit (EP) is the other primary profitability measure used by Barclays. EP is profit after tax and noncontrolling interests less a capital charge (average shareholders¶ equity and goodwill excluding noncontrolling interests multiplied by the Group¶s cost of equity).

Barclays believes that economic profit encourages both profitable growth and the efficient use of capital.

22

Shareholder returns Total shareholder return (TSR) is defined as the value created for shareholders through share price appreciation, plus reinvested dividend payments. We compare Barclays performance with a group of international peers and aim for top quartile performance. Return on average shareholders¶ equity is calculated as profit after tax divided by the average shareholders¶ equity during the year, which is made up of share capital, retained earnings and other reserves. Capital ratios Capital requirements are part of the regulatory framework governing how banks and depository institutions are managed. Capital ratios express a bank¶s capital as a percentage of its risk weighted assets. Both Tier 1 and Core Tier 1 capital resources are defined by the UK FSA. Core Tier 1 is broadly tangible shareholders¶ funds less the capital deductions from Tier 1. In the 2008 accounts, we showed Equity Tier 1 ratio which was broadly representative of the Core Tier 1 ratio. In 2009, the UK FSA formalised a definition for Core Tier 1 which is now published consistently by the industry in the UK.

These measures indicate the returns shareholders are receiving for their investment in Barclays both in terms of relative share price movements and the business performance. These metrics demonstrate the alignment of Barclays strategy and operations with the interests of shareholders. Peer group: Banco Santander, BBVA, BNP Paribas, Citigroup, Deutsche Bank, HSBC, JP Morgan Chase, Lloyds Banking Group, Royal Bank of Scotland, Unicredit and UBS.

Total shareholder return 2007 3rd quartile 2008 2nd quartile 2009 1st quartile

Return on average shareholders' equity 2007 20.3% 2008 16.5% 2009 23.8%

The Group¶s capital management activities seek to maximise shareholders¶ value by optimising the level and mix of its capital resources. The Group¶s capital management objectives are to: y Maintain sufficient capital resources to meet the minimum regulatory capital requirements set by the UK FSA and the US requirements that a financial holding company be µwell capitalised¶ y Maintain sufficient capital resources to support the Group¶s Risk Appetite and economic capital requirements y Support the Group¶s credit rating y Ensure locally regulated subsidiaries can meet their minimum capital requirements.

Core Tier and Tier 1

23

Performance in Pakistan:
In 2008 Barclays opens for business in Pakistan, with branches in Karachi, Lahore and Islamabad. The launch is the 14th emerging market Barclays Global Retail and Commercial Banking has entered since March 2007.

Banking on Brighter Futures:
Banking on brighter futures is our flagship programme that allows us to use our financial skills and expertise to maximum effect to help people work towards financial independence and security. It is about giving disadvantaged people the chance of a better life they wouldn¶t otherwise have. Through this programme we are focusing on: 1. increasing financial inclusion; 2. encouraging entrepreneurship and employment; and 3. Supporting access to education, particularly financial education. To date the following projects have been launched under the banner of Banking on brighter Futures:

A FIGHT AGAINST EXPLOIATIVE CHILD LABOUR ± UNICEF
Barclays joined hands with UNICEF in 2008 with a funding of over Rs. 30 million for a two year project aiming at increasing the economic potential for vulnerable families involved in bonded or exploitative forms of labour through providing access to education, vocational trainings, youth clubs and advocacy.
The main focus of this partnership has been on vulnerable families that work at Brick Kilns in Faisalabad and Lahore. Efforts under this project are mainly focused on basic literacy, vocational training, and money management skills through establishment of on-site Non-Formal Education Centers (NFC). Other benefits include micro credit style loan schemes for the purchase of tools and equipment, birth registration, medical services and avenues such as child forums and child clubs for child participation with the support of the Office of Child Facilitation in Lahore. To date, this partnership has led to the following successes: 1. Establishment of 8 Non-Formal Education Centres (NFC) in full functional capacity in Lahore with NGO Bunyad Foundation and 8 more in Faisalabad with Hayat Foundation. In these 16 NFCs, over 2000 children have access to education. 2. Additionally, over 400 adolescents and women are receiving vocational training on demand driven skills in 20 onsite vocational centres. 3. The project has also led to linking trained adolescents with local markets and micro-financing institutions for access to credit facilities in order to establish micro-enterprises. 4. 100 individuals have launched small home based businesses contributing Rs.1500- 2000 to the monthly household income 5. The number of unregistered children who have been issued with birth a certificate has crossed 2000 and over 2,500 adolescents have obtained CNIC.
24

6. 16 youth clubs have been formed having 320 members with an aim to promote positive competition, sports, plantation, kitchen gardening, self protection skills and to encourage healthy behaviour 7. 200 identifies families are benefiting with the conditional cash grant programme. 8. 16 Day care centres have also been established having enrolment of 250 children in all NFCs for the benefit of 1-5 years old children

BARCLAYS HOPE HOME SCHOOLS
Health Oriented Preventive Education (HOPE) is an NGO which is helping children, of rural areas and urban slums, pursue their dreams through the establishment of Home Schools which provide free of cost informal education in an efficient and cost-effective manner. These schools are devised to keep the overheads to a minimum by hosting classes in teachers¶ homes. Daily lessons last about four hours a day, giving children plenty of after- school time to help their parents on farms or at home which further encourages parents to send their children. In Nov 2008, Barclays Pakistan adopted the Home School project in association with HOPE, creating ³Barclays HOPE Home Schools´ with the help of Rs. 3.5 million, to be contributed by Barclays every year, for 3 years. The project¶s goals were to set up 100 informal schools across the country and educate over 3500 underprivileged children. The task of setting up 100 schools was accomplished in a short span of six months. Currently over 3800 students are attending Barclays HOPE Home Schools. Barclays HOPE Home Schools are located all over Pakistan. The areas include Karachi, Ghagger, Kathore, Link Road, Dhabeji, Gharo, Dadu, Azad Jammu Kashmir (AJK) and NWFP. These children, who would otherwise be playing on the roads or spending their time in fruitless games and activities, now attend school. In addition, 100 young females are now contributing to the family¶s income without needing to leave the premises of their homes. Some of the teachers are now studying for higher education. The most commendable impact of Barclays Hope¶s partnership is the role it has played in promoting female literacy in Pakistan. The remarkable increase in female students¶ ratio in Home Schools which currently stands at 75% is a true testament of our aim that educations should be accessible to all.

SUPPORT± A- SCHOOL WITH THE CITIZENS FOUNDATION (TCF)
TCF is a non-profit organization dedicated to providing quality formal education in a conducive learning environment. These schools though not free of cost are heavily subsidized, due to which the drop-out rate is less than 2%. In December 2008, Barclays Pakistan partnered with TCF to support their efforts in making education affordable to masses by a contribution of over Rs. 4.65 Mn for a year. The funds provided by Barclays have supported a secondary school in Sarhindi Goth - a katchi abadislum area, in Karachi and a primary school in a small farming village called Burki, in Hudyiara, Lahore. To further support this project and for the holistic development of young minds Barclays has contributed to 20 TCF libraries across the country. With Barclay¶s donation over 3,500 students have benefited from the knowledge of these books in 2009 and many more will continue benefiting in the coming years.
25

REFORMING A GOVERNMENT SCHOOL WITH BOOKGROUP
With the support of local government, Bookgroup (a non-profit educational research organization) took up the challenge of presenting and running a ³model´ public school in the city, to set an example of how the whole system can be transformed by focusing on the right things. Barclays joined hands with Bookgroup just when the model needed sustainability after a successful take-off. Barclays funding of over Rs. 7 Million supported modern curriculum development, teachers training and development, implementation of new teaching methodologies (including an Audio-Visual learning room) and a range of extra-curricular activities. This project has impacted the lives of over 2000 students and 125 teachers. The students at the school are now exposed to new course books and extracurricular activities which has helped them develop into well rounded students; willing and able to compete with students from across Pakistan. The change, witnessed in the last two years, has been nothing less than phenomenal. Volunteers from Barclays participate in the school's activities from time to time. Colleagues spent time with the students on counselling sessions during International Women's Day. The students and colleagues got together during Plant A Difference Day and planted over 700 saplings on the schools ground which severely lacked plants. The objective was to raise awareness and develop students' appreciation towards ecology and love of trees. Today the girls from the school regularly attend rowing competitions along with top notch private schools, they attend taekwando, pottery and photography classes, and some are coming up as fierce debaters. Their confidence is apparent to anyone who meets them. Few of them are actually looking forward to pursuing higher education and joining a bank someday.

CENTRE FOR SOCIAL MOBILIZATION WITH CARE-N-CURE
Barclays Pakistan partnered with Care N Cure with an aim to provide education integrated with basic health and hygiene care to the underprivileged children of rural areas of Sind and Balochistan, by installing a Fibre Glass Class (FGC) in Moladad Goth ± a medium sized fishermen colony on the border of Sindh and Balochistan. With a contribution of less than Rs 600,000, the setting up and running of this one Fiber Glass Centre for Social Mobilization (CSM) in Moladad Goth is accommodating over 50 children. The Fiber Glass Unit works as a mobile classroom and health awareness centre. Since the Unit is easy to erect, dismantle and transport from village to village, it has a far reaching effect. The children, parents and adults of the community are benefiting in the following ways:
26

1. Care-n-Cure's community education workers hold classes under the literacy programme which works on developing reading and writing skills of the enrolled children. Under this program children are provided with free books and stationary. 2. Care-n-Cure doctor also visits once a week to conduct health sessions for the whole community. This helps in creating awareness about basic hygiene and health care among children and their families. They are also provided with basic healthcare for prevention and early cure of diseases like respiratory infections, diarrhea and viral fevers etc. All these services are provided free of cost to the residents.

BARCLAYS SCHOLARS
Barclays Pakistan has partnered with IBA and LUMS SSE to fund 4 annual scholarships titled Barclays Scholar. These scholarships are for students who are unable to fund their education due to financial constraints. Commenting on the project, Chairman LUMS, Syed Babar Ali said: ³Considering that some students are unable to fund their education, such programs assist in educating those deserving individuals who aspire for quality education. We appreciate the commitment of Barclays towards playing a key role in the education sector of Pakistan.´ The LUMS sponsorships commit to funding $80,000 for 2 students over a four-year undergraduate programme while 2 students at IBA have been financially sponsored to complete their two year MBA program with the funding of Rs. 700,000.

RAMADADN TIME TO GIVE CAMPAIGN
Starting with the first holy month of Ramadan after the launch of Barclays in 2008, colleagues have been regularly contributing in the countrywide ³Boxes of Goodness´ campaign. In 2008 Barclays colleagues joined hands with Saiban in Karachi to distribute food packages to 100 families living in the Saiban incremental housing project, Khuda ki Basti. The event was deeply appreciated and generated such a positive response that it was made a permanent activity of Barclays Pakistan Community curriculum, titled µA Time to Give¶. In 2009, the colleagues at Barclays Pakistan distributed food ration boxes to over 300 low income families. The beneficiaries of this action were the parents of children studying in Barclays-HOPE home schools in Karachi, Barclays-UNICEF child centers in Brick kilns of Lahore and Faisalabad and internally displaced persons (IDPs) with Pakistan Red Crescent Society in Islamabad. Each box distributed contained atta (flour), rice, daal (lentils), cooking oil, sugar, tea, basun (grounded chick peas), and dates and was expected to last a family of 6-7 an entire month. Asad Ali, HR Head shared his personal opinion of the initiative taken by Barclays Pakistan colleagues and said: ³The Holy month of Ramadan nurtures patience, generosity and an opportunity to cleanse the soul. Through the distribution of Ramadan packages, our Barclays colleagues extended the bounties of generosity to the less fortunate in the spirit of this blessed month´ Asad Ali - HR Head
27

Branches
City Karachi Branch Address Phone No. Fax No.

Dawood Centre Ground, 1st & 2nd floor, Dawood 021-111 105 555 021-5634213 Center, MT Khan road, Karachi 021-5272931 021-5272909 Shahrah-e-Faisal Showroom no 1, 2, & 3 Ibrahim Trade 021-4327640-44 Tower, Shahrah-e-Faisal, Karachi Shahbaz Plot no. 1C/3C Khayaban-e-Shahbaz 021-5345491 Phase VI, DHA, Karachi 021-5345541 021-5345586 Shop no 5 & 6, JM (old no 50/7) 021-4860522 Shikarpur Colony Jamshed quarters, 021-4860523 New MA Jinnah road Karachi 021-4860530 Address Phone No. 021-4327645

021-5345475 021-5344921

Cosmopolitan

021-4860528

City Lahore

Branch Mall Road

Fax No. 042-6285651 042-6285657 042-5693193

112 Rafi Mansion, Sharah e Quaid e 042-6285642-48 Azam, Mall Road, Lahore 76-Z, Phase 3 DHA CommerciaI Area, 042-5693185-92 Lahore Ground floor, Carpet training institute, 042-6292437 27- empress road, Lahore, Pakistan 042-6292436 House no 7-E/2 , Main Boulevard, 042-5871866-73 Gulberg III, Lahore 857-A & 858, Block D, Faisal Town, 042-5221702-08 Akber Chowk, PECO Road Lahore

DHA Z Block

Empress Road

042-6292438

Gulberg

042-5872116

PECO Town

042-5221726

28

City

Branch

Address

Phone No.

Fax No.

Islamabad F-7

Plot 13 M, Main F-7 Markaz Jinnah 051-111 105 555 051-2655449 Super Market, Islamabad 051-2095000 Address Phone No. Fax No. 051-4612139

City Rawat

Branch Rawat

Riaz Hussain Shah Plaza , Main GT 051-4612386-93 Road, Near T-Chowk Islamabad, Opposite Shell Petrol Pump, Rawat, Islamabad Address Phone No.

City

Branch

Fax No. 051-5562552

Rawalpindi Haider Road

Plot #7 & 7-A, Survey #363/11 & 051-5562743 362/11, Haider Rd. Rawalpindi Cantt 051-5562811 051-5562812 051-5562813 051-5562550 051-4571411 051-4571412 Phone No.

Chandni Chowk 29-B/1, Nazir Plaza, Chandni Chowk

051-4571417

City Mangla

Branch Mangla

Address

Fax No. 0544-638139

Plot No. 17/4 Cantonment Board 0544-638062 Housing Scheme, Mangla Cantt, Mangla Address Phone No.

City Akora Khattak

Branch Akora Khattak

Fax No. 0923-630427

Issuri Payan, Shadoo District, Akora 0923-630428 Khattak 0923-630429 0923-630427

29

ATM Network
City Karachi ATM Location Dawood Centre Shahrah-e-Faisal Address Ground, 1st & 2nd floor, Dawood Center, MT Khan road, Karachi Showroom no 1, 2, & 3 Ibrahim Trade Tower, Shahrah-e-Faisal, Karachi Plot no. 1C/3C Khayaban-e-Shahbaz Phase VI, DHA, Karachi Shop no 5 & 6, JM (old no 50/7) Shikarpur Colony Jamshed quarters, New MA Jinnah road Karachi Domestic Jinnah Terminal International Airport, Karachi International Jinnah Terminal International Airport, Karachi Address 112 Rafi Mansion, Sharah e Quaid e Azam, Mall Road, Lahore 76-Z, Phase 3 DHA CommerciaI Area, Lahore Ground floor, Carpet training institute, 27- empress road, Lahore, Pakistan. House no 7-E/2 , Main Boulevard, Gulberg III, Lahore 857-A & 858, Block D, Faisal Town, Akber Chowk, PECO Road Lahore Domestic Allama Iqbal International Airport, Lahore Address Plot 13 M, Main F-7 Markaz Jinnah Super Market, Islamabad Domestic Islamabad International Airport, Islamabad Arrivals Arrivals Arrivals

Shahbaz Cosmopolitan

Karachi Airport

Karachi Airport

Arrivals

City Lahore

ATM Location Mall Road DHA Z Block Empress Road

Gulberg PECO Town

Lahore Airport

City Islamabad

ATM Location F-7 Islamabad Airport

30

City Rawat

ATM Location Rawat

Address Riaz Hussain Shah Plaza , Main GT Road, Near T-Chowk Islamabad, Opposite Shell Petrol Pump, Rawat, Islamabad Address Plot # 7 & 7-A, Survey # 363/11 & 362/11, Haider Rd. Rawalpindi Cantt 29-B/1, Nazir Plaza, Chandni Chowk Address Plot No. 17/4 Cantonment Board Housing Scheme, Mangla Cantt, Mangla Address Issuri Payan, Shadoo District, Akora Khattak

City Rawalpindi

ATM Location Haider Road

Chandni Chowk City Mangla ATM Location Mangla

City Akora Khattak

ATM Location Akora Khattak

ATM with Cash and Cheque deposit facility

31

Barclays Internet Banking:
Def: Internet Banking is a simple, convenient and secure method of accessing bank accounts through Internet. It's never been so easy to manage your finances in a secure and real time online environment; anytime, anywhere.

Barclays bank is accessible to you 24x7 and from wherever you are, you can take control of your finances easily. Our globally benchmarked Internet Banking facility gives you this very opportunity. With Barclays Internet Banking, Barclays Bank travels with you around the world and you have real-time access to your accounts. And with a host of services available on Internet Banking, we invite you to manage your finances with lot more ease!

Features and Benefits:
y Account Services You can now access up-todate information on your accounts, ANYWHERE, ANYTIME. Complete account details like account balance, monthly statements, unclear funds and cheque status is available for your Savings account and Current account.

y

Funds Transfers & Payments Transfer funds instantly within your accounts and to any third party account within Barclays. You can also leave standing instructions for frequent / periodic transfers. Requests Request a cheque book, account statement or give stop payment instructions. Other Services Services (Secure Mail box and Bulletins).

y

y

32

Protection Cover:
Barclays Internet Banking Services provides complete privacy, protection and security of the highest nature. Barclays Internet Banking provides a completely secure environment, using 128-bit encryption SSL (Secure Sockets Layer), digitally certified by Verisign. 128-bit SSL guarantees world-class security for Internet and e-commerce applications.

Eligibility:
This facility is available to Barclays Savings and Current account customers who are either y Individuals(Singly or Jointly2)

Browser Requirement:
Online Banking at Barclays works best with Internet Explorer 5.5 and above & Netscape7 and above. We recommend 128-bit encryption for logging into Online Banking.

2

Where the operation mandate is: either or survivor
33

Registration:
Email address is mandatory to register for Barclays Internet Banking facility. Following are the steps for registration: y Register yourself with branch for Internet Banking. Forms are available in Barclays Branches and Sales & Service Centre or download it from www.barclays.pk/contact/downloads

Registration Form:

34

y

Drop the completely filled and signed Internet Banking form (along with the signed terms and conditions) at any Barclays Bank PLC Branch or Sales & Service Centre. You will receive the User ID within 7 working days at your correspondence address mentioned in your account opening form. You will collect / receive login and transaction password from your parent branch or at the correspondence address as per your instruction on Internet Banking form. Customer will get his / her ID activated from Barclays Contact Centre.
Following are the steps for logging in for first time: Open the link www.barclays.pk and click login3; it will lead you to Internet Banking login page.

y

y

Login Process:

y y y

Enter the User ID and Password provided by Barclays Bank PLC, Pakistan. Answer the secret question (remembers these if you are logging for the first time) Change your password (If logging in for the first time).

For password change please proceed as follows: Click customer services Select password change option Change your existing password.

3

For Login and tutorial of using online services please see demo http://www.barclays.pk/demo.html
35

Online Services:

Account Access:
You can view all your Current, Saving, Term Deposit, Foreign Currency accounts and Finance Facility details.

Account Statement:
You can access your account statement online. To request your account statements please proceed as follows: y Log In to Internet Banking y Click Account Services y Select Adhoc Statement request from Account menu y Choose the account number y Enter the Start and end date from the given calendar y Click Request y Your requested will be sent to Barclays Bank PLC, Pakistan and it will be delivered to your mailing address

Account Activity Log:
You can access your account activity log online. To view your account activity please proceeds as follows: y Log in to Internet Banking y Click Account Services y Select Account Activity request from Account menu y Choose the account number y Enter the Start and end date from the given calendar or select from the menu provided. y Click GO y You can view your account activities on the screen or get print / PDF format or CSV format.

Cheque Status:
You can view any issued cheque status by using online services. You can check the status of you cheque through Barclays Internet Banking. This facility is available under Account Services => Cheque => Cheque Status Inquiry. You can order your cheque book of 25 / 50 / 100 leaves using Barclays Internet Banking under Account Services => Cheque => Cheque Book Request. You can collect it from your parent branch after two working days. Charges will be applicable as per Schedule of charges.

36

Stop cheque Payment:
By using online services you can stop any cheque for payment. To Stop Cheque proceed as follow:
y y y y y y y y y

Log in to Internet Banking Select account number Enter Start Cheque Number Enter End Cheque Number (Leave blank for stopping a single Cheque) Enter Payee name (non mandatory) Enter Amount (non mandatory) Select Date of cheque Write Stop Cheque Reason Click Request to proceed.

Funds Transfer:

You can easily transfer money4 between your own Barclays accounts and as well as to other Barclays Pakistan customer except from FCY A/C to LCY A/C and vice versa. It is a real time online environment; the transactions are done as you confirm them. Transaction speed may depend on the internet service you are using. The Limit is PKR 100,000 for transfer to other Barclays customers whereas PKR 500,000 for transfer within your own accounts. For wrong Payment Transfer Contact branch / call centre for rectification / resolution of your transaction. To make payment5 to other Barclays Account following are the steps:
y y y y y y

Click ³Payments and Transfers´. Click Transfer to A Barclay Customer Add Beneficiary Details if not existing then Click New Beneficiary. (enter destination account) Enter transfer Amount and Transfer Description Click transfer to proceed. Enter Transaction password to complete the transaction.

4 5

Funds can only be transferred between Barclays PKR (LCY) accounts. Repayment facility isn t available at Barclays Internet Banking.
37

Payee ID:
Payee ID is the reference number / name assigned to any payee account for your own convenience. To add payee, following are the steps: y Payment and Transfers y Payee maintenance y Assign Payee ID (Numeric / Alpha / Alpha numeric can be used for your convenience) y Enter Payee Name y Enter payee Account Number y Enter Payment Details

Setup Standing Instruction:
You Can: y Add Standing Instruction: Adding an SI mechanizes the process of executing transfers between the current, savings and loan accounts periodically. The bank will automatically execute the transfers as and when specified in the SI. y Modify Standing Instruction: You can modify the following information for an existing SI Transfer Amount, SI Execution Frequency, SI Priority, Next Execution Date, Previous Execution Date, Final Execution Date and Narrative. y View Standing Instruction: This facility embodies a search facility that enables you to search for SIs based on specific criteria. y Delete Standing Instruction: This facility enables you to delete a redundant SI. You can locate an existing standing instruction by using the search provision. The system will retrieve the existing details of the SI for verification. Upon verification the SI can be deleted. To Setup Standing Instruction please proceed as follows: y Click Payment and transfer y Add Payee Account y Select Standing instruction and Opt Add Standing Instruction y Select Standing Instruction Type y Select Source of account / Destination account / Beneficiary account y Transfer Amount and set the execution frequency and priority y Select First and Final Execution Date and Submit. y Enter Transaction Password to submit the request.

38

Term Deposit:
To view Term Deposit Details please proceed as follows: y Log in to Internet Banking y Select Term Deposit Option y You can view Term Deposit Details as well as TD payout instructions on the screen.

Finance Facility:
You can view details regarding all finance facilities and can have printouts of these details as well but you cannot make payment for your respective finance facility at this point in time.

Tips for Making Payments Online:
Before making a payment in Internet Banking, it's always best to:
y y

y

y y y y

Confirm the account and reference details. Confirm the account details of beneficiary before making any payments Have enough money in your account the working day before your payment is due or before making immediate payments. Please note: Internet Banking will not recognize any Auto Transfer facilities set up on your account. Check you have the correct reference details. After selecting your payee from the search results, type the correct reference number. This should be your known customer account/reference number. Ensure you've used the correct entry from your list of previous payees. Delete those unused. Ensure to select the correct payee Id , and delete the other which are not used Never click on the 'confirm' button twice. This will either log you out or give you an error code and your payment may not be made. If possible, print step 4 of 4. This is confirmation that your payment's been made and can be referred to if you have any problems with your payment. Cleared funds and cut-off times. If you deposit cash at a branch after 3.30pm-4pm, the funds will appear on your statement and reflect in your balance the same day in Internet Banking. These funds, however, are not cleared funds and will not be available until the following working day. If the funds are transferred out of the account you may incur charges to your account.

39

Branchless Banking Product: Classic Debit Card
The Barclays Classic Debit Card is extremely versatile and simple to use, and is valid both in Pakistan and overseas. Barclays Classic Debit Card brings just about everything within your reach, be it that exquisite gift for a dear one or that irresistible outfit for yourself your debit card gives you unmatched point of sale limits and ATM withdrawal limits. What's more, your debit card is a Visa Card, giving you the flexibility of usage in Pakistan as well as abroad. In addition VISA provides one of the world¶s largest global ATM networks, offering cash access in local currency in over 170 countries.

Premier Visa Debit Card:
More than a card, our Premier Visa debit card gives you the freedom and peace of mind to make things happen as well as providing you with a host of exclusive benefits. From dealing with unexpected situations, to making secure, convenient purchases anytime, anyplace. Your Barclays Premier Debit Card enjoy VISA¶s unsurpassed acceptance around the world. In addition VISA provides one of the world¶s largest global ATM networks, offering cash access in local currency in over 170 countries.

Features and Benefits
1. Enhanced limits Withdraw up to Rs 100,000 per day at ATMs and enjoy a purchase limit of up to Rs 100,000 per day. 2. Convenient shopping worldwide and locally Shop at more than 25,000 outlets in Pakistan and 29 million establishments worldwide. The amount is debited directly from your account in rupees, irrespective of the currency you spend in while shopping overseas. Over a million ATMs to serve your cash needs. 3. Assistance anytime, anywhere Avail of comprehensive VISA Global Customer Assistance Service (GCAS).

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Recommendation for Improvements:
Barclays PLC is ranked as the 25th largest company in the world by Forbes Global 2000 (2008 list). According to Data monitor, by market share, Barclays is the largest financial services provider globally with $3.7 trillion of assets. It is the second largest bank in the United Kingdom and the world based on asset size. Although Barclays is a largest bank but its operation in Pakistan is at small scale, the bank offer few products and services in Pakistan and it has few branches in all over the Pakistan. Barclays doesn¶t capture the best geographical location in Pakistan, It has few no. of branches and with small ATM Network. That¶s why the customer can¶t be attracting toward its product and services. Its online banking is also provide few product such as utility bills payment aren¶t facilitated till now, It provide Mobile Banking service in India with the name ³Hello Money´ but not yet in Pakistan which is very much popular in Pakistan now in this economical region. As our group realize we recommend that Barclays must boost up its business network for capture high market share and compete its competitors. Barclays provide more E-Banking product for the convenience and attraction of customer, and also provide Mobile Banking facility to customers. For improvement in business Barclays must enlarge its scope and scale of business.

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Bibliography:
www.sbp.org.pk www.barclays.pk www.google.com
www.forbes.com

www.barclays.com group.barclays.com www.bank.barclays.co.uk en.wikipedia.org/wiki/Barclays https://online.barclays.pk/retail/entry www.barclays.pk/community_investments www.topnews.in/hello-money-new-mobile-banking-service-barclays-india-223924

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Barclays Bank PLC, Pakistan 2nd Floor , Dawood Centre, ... Gulberg, House # 7-E/2, Main Boulevard, Gulberg III, Lahore, 042-5871866-73, 042-5872116 ...

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