Thursday, September 3, 2009

Barclays Bank PLC ADR

I am reviewing this stock (NYSE-BCS) today as I have not yet reviewed it and the 2008 year end annual statement has came in. I also own this stock. According to Quicken, I have made a return of 2.25% in Canadian currency terms on this stock since I bought it in March 2000. This bank has been hard hit by recent economic problems.

This is the only foreign stock I own. It is much more difficult to figure out how much you are actually earning in Canadian dollars in foreign investments. This one is quite tough as the company reports in UK pounds, but I have it in a US currency account. I have bought US dollar ADRs on this company via the NYSE. ADR stands for American depositary receipt. 1 ADR on this company is worth 4 shares of the company.

It is not that I lack foreign content in my portfolio. It is just that I tend not to own foreign stock. However, I generally get foreign content by owning stock on Canadian companies that do business world wide, or do business in US as well as Canada.

Most growth figures on this bank are not bad. However, it does not matter what currency you look at, this bank stock has lost money over the last 5 year period and has barely made any over the last 10 years. These figures include dividends. The stock price is currently lower than what it was 10 years ago. The only other growth figure to comment on is the growth in cash flow. As with every other bank, cash flow is all over the place and is often negative.

The other thing to mention is dividends. There was good dividend growth until 2009. They used to pay dividends semi-annually. The first semi-annual dividend due in April of 2009 was not paid. The bank has promised to reinstate dividends on a quarterly basis in the second half of 2009. They have not yet said what amount the dividend will be.

When looking at the Asset/Liability ratio on this stock, it is currently at 1.03 and this is pretty typical of a bank. A good ratio on this stock is the Accrual Ratio. It is usually low and it is often negative.

This stock certainly crashed with the stock market. It has since made a good recovery. However, the stock price is still a fair bit off the price it was in 2006 and 2007. I expect that it was continue to recover. I am not planning on selling at the present time. But then I do not have much invested and by this investment, I get to see what is happening in banking outside of Canada.

This is a bank. Barclays is a global financial services provider, engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services all over the world. Its web site is See my spreadsheet at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets.

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