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LONDON (Alliance News) - Barclays PLC said it is now targeting a higher leverage ratio after reaching its 3.0% target six months ahead of schedule. In the bank's full-year earnings release Tuesday, Barclays said 2014 will be another year of transition as it continues to shrink its balance sheet, particularly in its investment bank.
The bank, which last year raised GBP5.8 billion in a rights issue after its regulator, the Prudential Regulation Authority. said it must attain a 3.0% leverage ratio by June 2014, said it had a leverage ratio of just under 3.0%, putting it ahead of schedule in meeting the PRA's deadline.
It said it is now targeting a PRA leverage ratio of 3.5% by the end of 2015 and a range of 3.5% to 4.0% beyond 2015.
In a statement for its results for the year ended December 31, 2013, Barclays said it made a GBP514 million pretax loss is the fourth quarter, compared with GBP364 million for the corresponding quarter a year before, putting an end to three consecutive quarters of profitability.
The weaker performance came about from a GBP329 million loss in Barclays' investment bank in the quarter, which incurred significantly higher operating expenses and lower income on the back of a fall in FICC revenue.
As noted in the bank's unscheduled update on Monday, Barclays made a GBP2.87 billion pretax profit for the year ended December 31, 2013, compared with GBP797 million in 2012.
"Our UK Retail and Corporate Banking businesses delivered good results, alongside the continued strong growth of Barclaycard. Within the Investment Bank, an impressive performance in Equities and in Investment Banking has helped to partially offset lower income from our Fixed Income, Currencies and Commodities business," Antony Jenkins, chief executive, said in a statement.
"We have also started to make important progress in repositioning our African, European and Wealth businesses to improve returns. This performance has translated into income of GBP28.2 billion in the year, and adjusted profit before tax of GBP5.2 billion," he added.
Barclays maintained its dividend at 6.5 pence.
The bank said it is still committed to a 40-50% dividend payout ratio over time, but said it expects the ratio to be at 40% from 2014, which is at the lower range of guidance as it continues to retain profits to boost its capital position.
At the open, Barclays shares are up 0.6% at 276.50 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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