Barclays PLC (LSE:BARC) has told City analysts it remains optimistic about growing its UK Corporate Bank, which accounted for 7% of profits last year.
According to Barclays, currently, it has a 22% share of relevant corporate deposits but only a 9% share of relevant corporate lending and wants this latter number to increase.
Getting there will see pricing and terms on lending be more competitive and through a better digital proposition, reduce the number of portals from five to one and increase self-serve customers from 30% to over 60%.
Overall, the strategy is about serving customers better and being more competitive in lending but broker Shore Capital adds that, as ever, the challenge will be in the execution, while also depending on how competitors respond.
“Shore Capital retains a positive stance on Barclays’ shares with a fair value of 305p, implying 48% upside, making it our preferred play amongst the large-cap UK banks. Buy.”
Shares rose 1% to 208p.