Speakers from Touchstone Exploration, Shanta Gold, Savannah Resources and Kavango Resources feature in our Natural Resources webinar on May 25th. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 179.22
Bid: 179.38
Ask: 179.44
Change: -1.48 (-0.82%)
Spread: 0.06 (0.03%)
Open: 181.38
High: 182.24
Low: 178.14
Yest. Close: 180.70
BARC Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

RNS Alerts are a premium feature

Login to your account

myTerminal is a premium feature

Login to your account

Don't have an account? Click here to register.

TOP NEWS: Barclays Profit Takes Hit From Severe Credit Impairments

Wed, 29th Jul 2020 09:18

(Alliance News) - Barclays PLC on Wednesday reported a sharp drop in interim profit, as the lender was forced to up its credit impairment charges dramatically to deal the fallout of the Covid-19 pandemic.

Shares were 3.7% lower in early morning trade in London on Wednesday morning at 107.70 pence each. The FTSE 100 stock is down 40% so far in 2020.

For the six months to June 30, Barclays pretax profit dropped 58% year on year to GBP1.27 billion from GBP3.01 billion.

Total income improved 8% to GBP11.62 billion from GBP10.79 billion, but Barclays was forced to up its credit impairment charges to GBP3.74 billion from GBP928 million the year before.

Barclays said the provision increase was largely due to "revised IFRS 9 scenarios" driven by Covid-19.

The scenarios reflect "forecast deterioration in macroeconomic variables including a prolonged period of heightened UK and US unemployment, partially offset by the estimated impact of central bank, government and other support measures".

As a result, net operating income sunk 20% to GBP7.88 billion from GBP9.86 billion.

Barclays UK income decreased 11% due to ongoing margin pressure, with its net interest margin worsening to 2.69% from 3.11% the year before. Barclays UK's loan book grew to GBP202.0 billion from GBP193.7 billion.

The loan book expansion was attributed to the UK government's Bounce-Back Loan Scheme and Coronavirus Business Interruption Loan Scheme.

Barclays International income increased 16%, with Corporate & Investment Bank income up 31% and Consumer, Cards & Payments income down 21%. Within CIB, Markets income increased due to a strong performance across FICC and Equities.

The lender's total operating expenses were reduced by 3% to GBP6.56 billion from GBP6.87 billion. As a result, Barclays cost-to-income ratio improved to 57% from 64% in the first half of 2019.

Barclays CET1 ratio ended the half at 14.2%, up from 13.8% at the end of 2019 and 13.4% at the same point a year before.

Despite the common equity capital improvement, Barclays risk-weight assets grew to GBP319.0 billion at June 30 from GBP295.1 billion at the end of 2019.

"Our CET1 ratio underscores the strength of our balance sheet. Although we will remain well capitalised and ahead of our minimum requirements, we may experience stronger capital headwinds in the second half of the year. The board will decide on future dividends and capital returns at the year-end 2020," said Chief Executive Jes Staley.

Barclays has cancelled its interim dividend - compared to the 3.0 pence payout the year before - following a request from the UK Prudential Regulation Authority for big UK banks to preserve additional capital. Barclays will decide on its future dividends and its capital returns policy at the end of 2020, it said.

Staley added: "While the remainder of 2020 will be challenging, our diversified model means we can remain financially resilient and continue to support our customers and clients."

Barclays also pointed to the low interest rate environment contributing to the "challenging" conditions.

Barclays said its impairment in the second half will remain "above the level experienced in recent years", but below the first half credit impairment charge.

The lender expects its Barclays UK and CC&P income to gradually recover from its second quarter lows, but the difficulties seen in the quarter are "likely to persist" into 2021.

The lender also believes its investment bank is "well positioned" for the future, following the increased trading volumes in the first half.

Barclays continues to target a return on tangible equity of over 10% and a cost-to- income ratio of under 60% over time, but targets remain subject to change depending on the evolution of the Covid-19 pandemic.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

More News

Credit Suisse says markets 'consolidating' not 'correcting', unless ...

(Sharecast News) - Stockmarkets are now set to consolidate, given that inflation is now "a bit more" of an issue, but they are not headed for a 'correction', says Andrew Garthwaite at Credit Suisse.

14 May 21 12:46

UK banking industry to support customers who depend on cash long term

UK banking industry to support customers who depend on cash long term

13 May 21 10:28

FOCUS-Bankers quit London as Brexit relocations to EU step up

* Goldman Sachs, Barclays, Morgan Stanley move senior bankers* Regulatory pressure and ease in pandemic prompt relocations* Paris beats Frankfurt to claim biggest share of movesBy Pamela Barbaglia, Tommy Wilkes and Gwénaëlle BarzicLONDON/PARIS, May...

12 May 21 13:00

UPDATE 1-UK climate activist Bradbrook arrested after attacks on big banks

(Adds details)LONDON, May 11 (Reuters) - British climate activist Gail Bradbrook, co-founder of the Extinction Rebellion group, was arrested at home on Tuesday for conspiracy to cause criminal damage and fraud after her group attacked banks such a...

11 May 21 10:28

UPDATE 2-UK climate activist arrested after attacks on HSBC and Barclays

(Adds details on fraud allegation, recasts headline)By Guy FaulconbridgeLONDON, May 11 (Reuters) - British climate activist Gail Bradbrook, co-founder of the Extinction Rebellion group, was arrested at home on Tuesday for conspiracy to cause crimin...

11 May 21 10:28

UPDATE 2-Britain lowers NatWest stake with $1.5 billion share sale

(Adds loss realised and context)LONDON, May 11 (Reuters) - The British government has completed the sale of 1.1 billion pounds ($1.55 billion) in shares of NatWest, lowering its stake to below 55% in the lender it bailed out over a decade ago.UK G...

11 May 21 07:31

UPDATE 3-SoftBank leads $1 bln investment in e-commerce company THG

(Updates share price, adds background)LONDON, May 11 (Reuters) - Beauty and lifestyle e-commerce company THG Plc has raised more than $1 billion in new equity, including $730 million from Japan's SoftBank Group .The deal gives SoftBank a stake of ...

11 May 21 06:25

UPDATE 2-UK government kicks off NatWest share sale

(Adds background on NatWest)By Iain WithersLONDON, May 10 (Reuters) - The British government kicked off the sale of a further stake in taxpayer-backed NatWest Group , edging it a step closer to private ownership more than a decade since its rescue...

10 May 21 17:16

EXECUTIVE CHANGES: Hansard Global hires new CEO; Argentex co-CEO back

EXECUTIVE CHANGES: Hansard Global hires new CEO; Argentex co-CEO back

10 May 21 15:01

BROKER RATINGS: Fresnillo and Centamin get upgrades from RBC

BROKER RATINGS: Fresnillo and Centamin get upgrades from RBC

10 May 21 09:36

LONDON MARKET CLOSE: Equities rally after shocking US jobs undershoot

LONDON MARKET CLOSE: Equities rally after shocking US jobs undershoot

7 May 21 16:58

LONDON MARKET MIDDAY: FTSE 100 hits 14-month high ahead of US jobs

LONDON MARKET MIDDAY: FTSE 100 hits 14-month high ahead of US jobs

7 May 21 12:13

TOP NEWS SUMMARY: Bramson exits Barclays; St Modwen get Blackstone bid

TOP NEWS SUMMARY: Bramson exits Barclays; St Modwen get Blackstone bid

7 May 21 11:28

Sherborne dumps Barclays stake after three-year battle over strategy

Sherborne dumps Barclays stake after three-year battle over strategy

7 May 21 10:03

UPDATE 2-UK mid-caps hit record high on recovery hopes; M&A chatter boosts Meggitt

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* St. Modwen Properties surges on $1.68 bln buyout offer* Melrose rises on Morgan Stanley PT hike* FTSE 100 up 0.7%, FTSE 250 adds 1.2% (Upd...

7 May 21 09:43

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.