- Barclays’ Investment Bank revenue surpassed expectations, reaching GBP3.87 billion against an estimate of GBP3.55 billion.
- FICC (Fixed Income, Currencies, and Commodities) revenue was notably strong at GBP1.70 billion, exceeding the forecast of GBP1.46 billion.
- Equities revenue amounted to GBP963 million, beating the estimate of GBP904.8 million.
- Investment banking fees were near estimates, recording GBP644 million as compared to the expected GBP644.9 million.
- Corporate lending income outpaced expectations, coming in at GBP156 million versus the estimate of GBP86.4 million.
- Transaction banking income slightly surpassed the estimate with GBP411 million, as opposed to GBP406.2 million expected.
- Total income for the period was GBP7.71 billion, ahead of the projection of GBP7.38 billion.
- UK Personal Banking revenue was recorded at GBP1.35 billion, slightly above the estimate of GBP1.34 billion.
- UK Barclaycard Consumer revenue fell below expectations at GBP225 million compared to the GBP237.5 million estimate.
- UK Business Banking revenue was GBP501 million, below the estimated GBP522.8 million.
- Barclays UK revenue was marginally lower at GBP2.07 billion against the GBP2.1 billion estimate.
- UK Corporate Bank revenue exceeded expectations, bringing in GBP484 million compared to GBP469 million estimated.
- Private Bank and Wealth Management revenue stood at GBP349 million, slightly surpassing the estimate of GBP343.9 million.
- US Consumer Bank revenue was slightly below expectations at GBP864 million, against an estimate of GBP867.4 million.
- Net interest income was strong at GBP3.52 billion, above the GBP3.38 billion estimate.
- Pretax profit was reported at GBP2.72 billion, exceeding the estimates of GBP2.51 billion.
- Attributable profit came in at GBP1.86 billion, surpassing the estimate of GBP1.68 billion.
- Return on tangible equity stood at +14%, higher than the expected +13.1%.
- The cost-to-income ratio improved, reported at 57% compared to the 58.6% estimate.
- The Common Equity Tier 1 ratio was slightly stronger at 13.9%, exceeding the 13.5% estimates.
- Total deposits grew to GBP574.3 billion, above the projected GBP558.99 billion.
- Risk-weighted assets were reported at GBP351.3 billion, lower than the estimate of GBP361.13 billion.
- Total operating expenses stood at GBP4.37 billion, just above the estimate of GBP4.34 billion.
- Provision for loan losses was higher than expected at GBP643.0 million, compared to the GBP536.1 million estimate.
- Analyst recommendations include 17 buys, 4 holds, and 1 sell for Barclays.
Barclays PLC on Smartkarma
Analysts on Smartkarma, like Jesus Rodriguez Aguilar, are discussing Barclays PLC‘s potential acquisition of Santander UK in a research report titled “Strategic Crossroads: Santander UK Acquisition by Barclays?“. Rodriguez Aguilar’s analysis leans bearish, noting Santander UK’s challenges with a lower Return on Tangible Equity (RoTE) due to high costs and margin pressures. Despite this, the future looks promising with expected regulatory easing and the potential acquisition by Barclays for £12 billion. The report suggests Barclays could maintain a 12.5% CET1 ratio by utilizing various financial strategies.
Rodriguez Aguilar emphasizes Santander’s focus on cost-saving measures and risk reduction strategies to drive profitability in the UK market. The report underscores the positive outlook for 2025, highlighting the potential benefits of regulatory changes and higher interest rates for both Santander UK and Barclays if the acquisition materializes. This insightful analysis provides valuable perspectives for investors considering the implications of such strategic moves in the banking sector.
A look at Barclays PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.4 |
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 known for its wide range of services including retail banking, credit cards, wholesale banking, and investment management, has received notably high Smart Scores across various factors. With top scores in Growth, Resilience, and Momentum, the company seems to have a robust long-term outlook. Its high Growth score suggests promising prospects for expansion and profitability in the future, while the Resilience and Momentum scores indicate strong stability and positive market momentum, respectively.
Furthermore, Barclays PLC‘s standout scores in Value and Dividend, though not the highest, still reflect favorably on the company’s overall outlook. These scores hint at a solid foundation in terms of financial health and potential returns to shareholders. In conclusion, Barclays PLC appears to be well-positioned for sustained growth and resilience in the coming years based on its impressive Smart Score ratings across key factors.
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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