The ratings on Barclays Bank PLC reflect its good income levels, improving cost control, satisfactory capital adequacy, and strong U.K. market position. Profitability is robust on an international basis, although correlated with U.K. economic performance. Strategic decisions in the late 1990s have positioned Barclays well to provide a resilient performance during more difficult economic conditions, and income should remain good in absolute terms. Increased competition in U.K. financial services restrains earnings growth, even though Barclays does not compete solely on price across its entire portfolio. Continuing efforts to reduce exposure to more volatile sectors, and improvements in risk management procedures, help dampen the impact of economic conditions on the balance sheet. Exposures are diversified by country and sector. Barclays' position
