Barclays Bank of Kenya:

Intern Recruitment
Strategy Analyst Round 1 Package

November 2018
Nairobi, Kenya

This material is solely intended for candidates applying for Strategy Analyst position at Barclays Bank of
Kenya. Any use of this material without specific permission of Barclays Bank of Kenya is strictly
prohibited.
 Strategy Analyst Round 1 Package
A. General Instruction
 Candidate is requested to complete all questions in compulsory sections (section A
to C). A candidate will gain additional score upon completion of optional section
(Section D), in case their score of compulsory sections equals to other candidates
 Candidate is requested to submit answer within 24 hours from the time this test is
sent to them
 No general format is required for the submission, unless stated otherwise in specific
section
 Submission that does not meet all of the above criteria will not be accepted. Only
shortlisted candidates will be contacted for interview
 No additional description and supported documents will be provided
 No prerequisite qualification is needed to complete this test
 Should candidates have any questions regarding to the test, please contact Barclays
executive Ms. Thao Ha at ha.thao@barclays.com
 This material is solely intended for candidates applying for Strategy Analyst position
at Barclays Bank of Kenya. Any use of this material without specific permission of
Barclays Bank of Kenya is strictly prohibited
B. Test
Section A (30% of Total Score): Strategy
In less than 7 slides, please answer ONE of the following questions:
1. How will digital technology shape future banking?
2. What are financial service needs of micro, small and medium enterprises? How can
banks efficiently serve this sector?
3. How will winning corporate banking look like in 2023?
Section B (40% of Total Score): Business Intuition
1. What are some insights you can draw from this exhibit?

Note: Size of the bubble is absolute revenue of the respective company in 2016
Source: McKinsey analysis, Barclays analysis

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 Strategy Analyst Round 1 Package
2. What are some insights you can draw from this exhibit?

Source: Absa Research, Barclays analysis

3. What are some insights you can draw from this exhibit?
Number of resource-driven countries over time, Income class at time of becoming
by income class(1) resource-driven; 1995-2011(2)
High Income
Upper Middle Income
Lower Middle Income High,
Low Income 81 11%

17 40%
58 Upper
21 Middle,
22 Low,
25%
54%
19 27
Lower
8 16 Middle,
9 11%
1995 2011

% of world GDP 18 26

% of world population 18 49

Notes:
(1) Wedefine resource-driven countries using three criteria: 1) resources are more than 20%
of exports; 2) resources are more than 20% of fiscal revenue; or 3) resources rents are more
than 10% of GDP. Where data were not available, we estimated based on the nearest year’s
data.
(2) WorldBank income classifications based on per capita gross national income (GNI) by
country; thresholds updated annually. In 2011, the World Bank thresholds for categorization
were $1,026 for lower-middle income, $4,036 for upper-middle income, and $12,476 for high
income.
Source: UNCTADstat, IMF, World Bank, IHS Global Insight, McKinsey Global Institute analysis

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 Strategy Analyst Round 1 Package
4. ApolloX is a big company selling T-shirts.

Market share by Market share by

Type of t-shirt Price per item
volume value
Mars 36.0% 35.0% $6.50

Jupiter 33.0% 34.8% $5.90

Saturn 38.2% 36.4% $7.75

a) Last quarter, the total value of the three t-shirt markets was $1.20 million, $1.08
million and $1.24 million, respectively. Calculate the total volume of each t-shirt
market during the previous quarter
b) The company owners expect an increase of 14% in volume across all three divisions
in the upcoming quarter as demand is increasing rapidly. However, they decide not
to raise prices to attract more buyers. As a result, the company’s market share by
value will be unchanged. Calculate the total value of each t-shirt market in this case
c) In another scenario, the company owners decide to raise the price of each type of t-
shirt by 12%. As a result, market share by value remains unchanged, but with the
total value of each market increasing by 26.5% compared to the previous quarter.
Calculate the % change in volume of each division
Section C (30% of Total Score): Financial Analysis
1. The Supernova Corporation had 100,000 shares of common stock outstanding at the
beginning of the year. Supernova issued 30,000 shares of common stock on May 1. On
July 1, the company issued a 10% stock dividend. On September 1, Supernova issued
1,000, 10% bonds, each convertible into 21 shares of common stock. What is the
weighted average number of shares to be used in computing basic and diluted Earnings
Per Share (EPS), assuming the convertible bonds are dilutive?
Average shares, basic Average shares, dilutive
a) 132,000 139,000
b) 132,000 146,000
c) 139,000 146,000
2. Andromeda has a contract to build a building for $100,000 with an estimated time to
completion of three years. A reliable cost estimate for the project is $60,000. In the first
year of the project, Andromeda incurred costs totalling $24,000. How much profit should
Andromeda report at the end of the first year under the percentage-of-completion
method and the completed-contract method?
Percentage-of-completion Completed-contract
a) $16,000 $0
b) $16,000 $40,000
c) $40,000 $0

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 Strategy Analyst Round 1 Package
3. Selected data from Balance Sheet of Dear Moon Corporation at the end of the year is as
follows:
Investment in Alpha Company, at fair value $150,000
Deferred taxes $86,000
Common stocks, $1 par value $550,000
Preferred stocks, $100 par value $175,000
Retained earnings $893,000
Accumulated other comprehensive income $46,000
The investment in Alpha Company had an original cost of $120,000. Assuming the
investment in Alpha is classified as available-for-sales, Dear Moon’s total owners’ equity at
year end is closest to:
a) $1,618,000
b) $1,644,000
c) $1,714,000
4. Which of the following ratios are used to measure a firm’s liquidity and solvency?
Liquidity Solvency
a) Current ratio Quick ratio
b) Debt-to-equity ratio Financial leverage ratio
c) Cash ratio Total debt ratio
5. Return on equity using the traditional DuPont formula equals:
a) (net profit margin)x(interest component)x(solvency ratio)
b) (net profit margin)x(total asset turnover)x(tax retention rate)
c) (net profit margin)x(total asset turnover)x(financial leverage multiplier)
6. Falcon Heavy has an operating profit margin (EBIT/Revenue) of 11%, an asset turnover
ratio of 1.2, a financial leverage multiplier of 1.5 times, an average tax rate of 35%, and
interest burden of 0.7. Falcon Heavy’s return on equity is closest to:
a) 9%
b) 10%
c) 11%
7. An analyst who is interested in a company’s long-term solvency would most likely
examine:
a) Return on total capital
b) Defensive interval ratio
c) Fixed charge coverage ratio

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 Strategy Analyst Round 1 Package
Section D (Optional)
Assuming a mobile application named Big Bang has the following performance indicators:
Impressions Visitors Installs
Week 1 434,207 191,562 65,131
Week 2 440,581 195,814 70,493
Week 3 527,160 195,244 52,716
Week 4 518,573 196,700 57,043
Week 5 489,525 178,009 39,162
Week 6 495,914 165,305 34,714
Week 7 502,580 139,606 25,129
 What trend do you see in the relationship between the App’s impressions and installs? And
between App store visitors and installs?
 Give some hypotheses of what causes these trends?

___________The end ___________

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Thank you!