- Barclays’ Investment Bank revenue for 4Q exceeded expectations with GBP2.61 billion versus the estimated GBP2.47 billion.
- FICC revenue was slightly below estimates at GBP934 million, against an expected GBP966.7 million.
- Equities revenue significantly surpassed estimates, at GBP604 million compared to the estimated GBP502.2 million.
- Investment banking fees reached GBP614 million, exceeding the projection of GBP593.9 million.
- Corporate lending income fell short at GBP45 million, against the estimate of GBP72.5 million.
- Transaction banking income slightly beat expectations, with GBP410 million compared to the estimated GBP399 million.
- Total income was reported at GBP6.96 billion, surpassing the estimate of GBP6.53 billion.
- UK Personal Banking revenue saw a significant increase, recording GBP1.85 billion against a forecast of GBP1.17 billion.
- UK Barclaycard Consumer revenue underperformed at GBP231 million, below the expected GBP350.8 million.
- UK Business Banking revenue was lower than expected at GBP537 million versus GBP669.2 million estimated.
- Barclays UK overall revenue was higher than estimates, hitting GBP2.62 billion compared to the expected GBP2.34 billion.
- UK Corporate Bank revenue slightly exceeded expectations at GBP458 million versus GBP454.2 million estimated.
- Private Bank and Wealth Management revenue outperformed, earning GBP351 million compared to an estimate of GBP333.1 million.
- The US Consumer Bank contributed GBP857 million in revenue, slightly above the estimate of GBP839.7 million.
- Net interest income surpassed forecasts with GBP3.50 billion against an estimated GBP3.29 billion.
- Pretax profit was slightly higher than expected, reported at GBP1.66 billion compared to a forecast of GBP1.62 billion.
- Return on tangible equity was strong at +7.5%, higher than the estimated +7.15%.
- The Cost to Income Ratio was more efficient than expected at 66%, compared to the estimate of 68%.
- The Common equity Tier 1 ratio was robust at 13.6%, slightly higher than the expected 13.5%.
- Total deposits amounted to GBP560.7 billion, beating the estimate of GBP553.54 billion.
- Risk-weighted assets were higher than anticipated, at GBP358.1 billion versus GBP348.82 billion estimated.
- Total operating expenses exceeded expectations, totaling GBP4.59 billion against an estimate of GBP4.36 billion.
- Provision for loan losses were significantly higher at GBP711.0 million compared to a projected GBP595.6 million.
- Analyst recommendations included 17 buys, 4 holds, and 2 sells.
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Barclays PLC on Smartkarma
On Smartkarma, investment analyst Jesus Rodriguez Aguilar provides insight into Barclays PLC‘s potential strategic move regarding a possible acquisition of Santander UK. In the research report titled “Strategic Crossroads: Santander UK Acquisition by Barclays?“, Aguilar leans bearish on the outlook, highlighting Santander UK’s lower Return on Tangible Equity (RoTE) due to high costs and margin pressures. Despite this, Aguilar sees positive future prospects for Santander UK, expecting regulatory easing and the potential acquisition by Barclays to drive growth.
Aguilar suggests that Barclays could acquire Santander UK for £12 billion, aiming to maintain a CET1 ratio of 12.5% through a mix of equity issuance, debt financing, and asset sales. With a focus on cost-saving measures and risk reduction strategies, Santander UK aims to enhance its profitability, bolstered by the UK being a core market with a low likelihood of divestment. This insightful analysis provides valuable information for investors considering Barclays PLC and its potential strategic moves in the market.
A look at Barclays PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Barclays PLC, a global financial services provider offering a range of services, has been assigned a solid overall outlook according to Smartkarma Smart Scores. With strong scores in Resilience and Momentum, Barclays seems well-positioned to weather market fluctuations and maintain positive growth momentum. This indicates the company’s ability to withstand challenges and capitalize on market opportunities, which bodes well for its long-term stability.
Furthermore, Barclays has received high scores in Value and Growth, showcasing its potential for value creation and expansion. Combining these factors with a moderate score in Dividend, Barclays PLC appears to offer a balanced investment opportunity with growth potential and a focus on shareholder returns. Investors looking for a company with a robust outlook across various metrics might find Barclays PLC an attractive proposition in the financial services sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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