Junius
Long/short equity, medium-term horizon, value, growth

Barclays: Worth Less Than The Sum Of Its Parts?

In my previous article on Barclays (NYSE:BCS), "Barclays: Nearing The Bottom?", I presented the bullish case for the bank because of the progress it has made with its restructuring plan and the impending reductions to its cost base. The bank also benefits from highly profitable retail banking and Barclaycard businesses. However, Barclays Capital, its investment bank, continues to struggle with declining revenues and is in the midst of major restructuring. Following from this, we will take a closer look at the value of the bank's various businesses.

The market currently values investment banking assets at a far lower multiples on book value than retail banking assets, which is primarily why Barclays is currently valued at just...

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