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Banks in focus this session One of the best performing stocks on the FTSE 100 is Lloyds Bank which has risen by almost 4 per cent after posting a near doubling of first-quarter profits. A pre-tax earnings figure for quarter one of £1.3billion marks a 99 per cent rise on last year’s equivalent and the results are all the more impressive considering that the bank was forced to set aside a further £450million for the PPI mis-selling and HBOS scandal. The release also included an upgrade to its profit guidance for 2017 estimating that its net interest margin would improve to 2.8 per cent from the 2.7 per cent previously forecasted. The results follow a positive earnings release from Standard Chartered yesterday and now investors will be looking forward to tomorrow’s numbers from Barclays and RBS in a more optimistic mood. If there is further positivity in these reports then the signs of strength will increase and after many years of problems the path ahead is starting to look a whole lot rosier for the banking sector.
(Adds Barclays statement) LONDON, April 27 (Reuters) - Shareholder advisory firm Glass Lewis on Thursday recommended investors vote against the reelection of Ian Cheshire to the board of Barclays, saying he has too many commitments to fulfill all his duties. Cheshire is chairman-designate of Barclays's UK retail bank, which will be separated from the investment bank in 2019 under rules designed to protect savers' deposits. He also sits on the board of four other companies, including Debenhams Plc and Whitbread Plc, meaning he may not have sufficient time to discharge his responsibilities effectively, Glass Lewis said. Barclays shareholders will have the opportunity to vote on Cheshire and the bank's other board members at the bank's annual general meeting in London on May 10. Barclays said in response to the concerns that plans are in place for Cheshire to reduce the number of other directorships he holds. Cheshire, who joined the Barclays board on April 3, has told the bank and regulators he will reduce his other commitments by September 2017, Barclays said. The issue of so-called 'over-boarding' whereby board members of British companies spread themselves too thinly has gained increased attention in recent years. HSBC last week said Paul Walsh, the former chief executive of drinks maker Diageo, is to step down from its board with immediate effect in order to focus on his other commitments. ISS, another shareholder proxy firm, meanwhile advised shareholders abstain from voting to reelect Barclays Chief Executive Jes Staley. Staley faces regulatory probes in the U.S. and Britain and criticism from investors following his attempts to unmask a whistleblower at the bank. (Reporting By Simon Jessop and Lawrence White, Editing by Anjuli Davies)
Barclays Plc’s shareholders shouldn’t vote to re-elect Jes Staley to the board after the chief executive officer embroiled the bank in scandal by trying to identify a whistle-blower in violation of the firm’s code of conduct, a proxy adviser said. Institutional Shareholder Services Inc. said abstaining is appropriate until industry watchdogs complete their probes into Staley’s behavior, while those who are required to vote for or against should oppose the re-election. The CEO faces investors at the bank’s annual general meeting in London on May 10. Jes StaleyPhotographer: Peter Foley/Bloomberg “Jes Staley is now under investigation by U.K. regulators as to his individual conduct and senior manager responsibilities,” ISS said in a report Thursday. “Given his personal involvement and accountability in this matter, and given the importance of his role as the group CEO, an abstention on his re-election is considered appropriate.” Barclays’s board publicly reprimanded the CEO this month after discovering he had tried to unmask the whistle-blower even after he was told it was inappropriate. The whistle-blower had raised concerns in an anonymous letter about the hiring of a top banker last year. That banker was Tim Main, a former colleague of Staley’s at JPMorgan Chase & Co., people familiar with the matter said. Staley may have to forfeit his entire 1.3 million-pound 2016 bonus over the scandal. Your cheat sheet on life, in one weekly email. Get our weekly Game Plan newsletter. Sign Up Probes by the Bank of England’s Financial Conduct Authority and Prudential Regulation Authority will take several months and could result in anything from a verbal warning to Staley losing his status as an approved person and therefore his ability to run the bank. The events are also under scrutiny by the Department of Financial Services in New York and the U.S. Department of Justice, according to a people with knowledge of the matter. ISS advised shareholders to vote to in favor of all other board members, but highlighted the “significant external time commitments” of non-executive director Ian Cheshire, who was named chairman of Barclays’s ringfenced U.K. business in February and started this month. The proxy adviser had no major issues with the bank’s remuneration report and recommended investors approve executives’ compensation packages.
Overview It trades at a lower Price/Book multiple (0.59) than its peer median (1.03). The market expects faster earnings growth from BARC-GB than from its peers and also a turnaround in its current ROE. BARC-GB employs relatively high amounts of capital while generating median profit margins. Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings. BARC-GB's return on equity currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers. The company's lending operations do not seem to benefit from any differentiating pricing advantage or an operating cost advantage relative to peers. While BARC-GB's revenues have increased slower than peer median, the market currently gives the company a higher than peer median P/E ratio and may be factoring in some sort of a strategic play. The company's relatively low level of equity capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
Barclays (BCS) Q1 Earnings: What's in Store for the Stock? http://finance.yahoo.com/news/barclays-bcs-q1-earnings-apos-133501816.html
Now we're through the big French election risk, and the high likelihood of Macron winning through, Barclay's says this might also open the gate for further GBP gains "The first round of the French elections supports the likelihood of Emmanuel Macron, becoming the president which should remain broadly supportive to the EUR, EM and risk assets, and should also confirm the recent appreciation path of GBP." "In this environment, GBP appreciation would likely continue as the UK election is increasingly viewed as reducing UK political uncertainty...Despite last week's appreciation, GBP remains about 9% cheap on a real effective exchange rate basis," They also point to Friday's first UK Q1 GDP release as being key. "We and consensus expect a 0.4% q/q increase, which implies 2.1% y/y," Today, the quid looks far from ready to spring another step higher but while we hold the 1.2770 support again, it gives buyers hope again.
Goldman leaves Barclays on a 'Neutral' target of 250 pence 25.04.17, 16:20 GOLDMAN SACHS NEW YORK (dpa-AFX analyst) - US investment bank Goldman Sachs has left Barclays on a "neutral" basis with a price target of 250 pence. The European investment banks should have a solid first quarter, according to analyst Jernej Omahen in a business study of Tuesday / gl / edh. Note: Information on the disclosure requirement for conflicts of interest within the meaning of § 34 b WpHG for the analysts' house can be found at http : //web.dpa-afx.de/offenlegungspflicht/offenlegungs_pflicht.html.
Say what you like about Barclays’ American boss Jes Staley (please, knock yourself out) but don’t assume he’s a stereotypical Wall Streeter with an underdeveloped sense of irony. Staley has, of course, landed himself in the soup over his attempts to unmask an internal whistleblower, who was supposedly saying mean things about a close pal and colleague. That resulted in an official warning for Staley earlier this month – but a more charitable interpretation might be that the bungling spymaster act was merely a satirical homage to the old Barclaycard ads featuring Rowan Atkinson’s incompetent MI7 spook, Latham. You remember the sort of thing: an earnest Latham tries to show off his espionage skills, only to accidentally shoot himself in the scrotum with a tranquilliser pen. Or the one where our hero tries to buy a ****et by haggling with a trader in local dialect: “You sound fluent, sir.” “We are both fluent, Bough; sadly in different languages”. So, by that reading, Staley’s efforts were not the shameful trampling over whistleblower protocols they originally appeared to be. Instead, they were a cruelly misunderstood and affectionate comic tribute to a vintage period of the bank’s advertising. Please remember that when he faces the City for the first time since being publicly disgraced, at Barclays’s quarterly results this week.
Hi, I thought you would be interested in this article from Real Money http://realmoney.thestreet.com/articles/04/19/2017/if-barclays-headed-anywhere-its-likely-be-down
Someone tell me why Barclays has lost 20% since results That's the question I want an answer to. This is one long share you have to hold. I invested in stobart at 95p sold at 145p far to early Had invested in close brothers at 630p sold at 905p far to early Invested in macfarlane at 36p sold at 38p after holding for years, then up they go further now 61p When will Barclays get to my average sp 246p That's the question
Broad Value Outlook In aggregate, Barclays currently has a Zacks Value Style Score of ‘A’, putting it into the top 20% of all stocks we cover from this look. This makes Barclays a solid choice for value investors, and some of its other key metrics make this pretty clear too. For example, the PEG ratio for Barclays is just 0.49, a level that is far lower than the industry average of 1.72. The PEG ratio is a modified PE ratio that takes into account the stock’s earnings growth rate. Clearly, BCS is a solid choice on the value front from multiple angles. What About the Stock Overall? Though Barclays might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘F’ and a Momentum score of ‘A’. This gives BCS a Zacks VGM score—or its overarching fundamental grade—of ‘B’. (You can read more about the Zacks Style Scores here >>) Meanwhile, the company’s recent earnings estimates have been pretty encouraging. The current year has seen one estimate going higher in the past sixty days compared to one lower, while the next year estimate has seen one upward and no downward movement in the same time period. This has had a significant impact on the consensus estimate as the current year consensus estimate has risen by 4.8% in the past two months and the next year estimate has increased by 8.4%. You can see the consensus estimate trend and recent price action for the stock in the chart below: Barclays PLC Price and Consensus Barclays PLC Price and Consensus | Barclays PLC Quote However, despite the bullish trend in estimates, the stock has just a Zacks Rank #3 (Hold) and we are looking for in-line performance from the company in the near term. Bottom Line Barclays is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Moreover, with a strong industry rank (Top 18% out of more than 250 industries) further strengthens its future growth potential. In fact, over the past one year, the Zacks Banks- Foreign industry has clearly outperformed the broader market, as you can see below: So, despite a Zacks Rank #3, we believe that bullish analyst sentiment and favorable industry factors make this value stock a compelling pick. 5 Trades Could Profit "Big-League" from Trump Policies If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 B
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value? One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Barclays PLC BCS stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole. On this front, Barclays has a trailing twelve months PE ratio of 10.94, as you can see in the chart below: This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 compares in at about 20.06. If we focus on the stock’s long-term PE trend, the current level puts Barclays’s current PE ratio slightly above its midpoint over the past five years. Further, the stock’s PE also compares favorably with the Zacks classified Banks- Foreign industry’s trailing twelve months PE ratio, which stands at 13.90. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers. We should also point out that Barclays has a forward PE ratio (price relative to this year’s earnings) of just 9.77, so it is fair to say that a slightly more value-oriented path may be ahead for Barclays stock in the near term too. P/S Ratio Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings. Right now, Barclays has a P/S ratio of about 1.12. This is lower than the S&P 500 average, which comes in at 3.04 right now. Also, as we can see in the chart below, this is below the highs for this stock in particular over the past few years. If anything, BCS is in the lower end of its range in the time period from a P/S metric, suggesting some level of undervalued trading—at least compared to historical norms. Broad Value Outlook In aggregate, Barclays currently has a Zacks Value Style Score
That's the Big question. Reading though your past post jackbowers16, I know that you are going to give me (us) a unbiased answer. I've not knocked any of your views on Barclays, I'm just invested in a share that's going through some muddy waters.And like any investor that's invested in a company which is trying to reorganise the business you take that option to invest or not. I'm very frustrated with the sp, but I'm a long term investor and will wait until the time is right to cash in my investment. I respect all your knowledge and information that you share on this board.
WASHINGTON, April 11 (Reuters) - President Donald Trump told a group of chief executives on Tuesday that his administration was reducing regulations and revamping the Wall Street reform law known as Dodd-Frank, which might be eliminated and replaced with "something else." "We're going to reduce taxes, we're going to eliminate wasteful regulations," Trump said at a meeting attended by corporate leaders and members of his cabinet. Earlier this year, Trump ordered reviews of the major banking rules that were put in place after the 2008 financial crisis and last week he said officials were planning a "major haircut" for the regulations. "For the bankers in the room, they'll be very happy because we're really doing a major streamlining and, perhaps, elimination, and replacing it with something else," Trump said on Tuesday. "That will be the minimum. But we're doing a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously, but getting rid of many." Participants in the meeting included Rich Lesser, chief executive of Boston Consulting Group; Doug McMillon, chief executive of Wal-Mart Stores; Indra Nooyi, chief executive of PepsiCo; Jim McNerney, former chief executive of Boeing; Ginni Rometty, chief executive of IBM; and Jack Welch, former chairman of General Electric. The business leaders are part of Trump's "Strategy and Policy Forum" that last met with him in February. Trump also reiterated his criticism of the North Atlantic Free Trade Agreement between the United States, Canada and Mexico. "NAFTA is a disaster. It's been a disaster from the day it was devised. And we're going to have some very pleasant surprises for you on NAFTA, that I can tell you,"
Could Barclays (LSE: BARC) be the runaway winner in the banking sector in 2017 and beyond? Let me tell you why I think it could. The key thing for me is that Barclays is the one that has firmly grasped the Brexit nettle, and it fully understands what it needs to do to minimise the negative effects of the UK leaving the EU. Along with the bank’s third-quarter results, chief executive Jes Staley reiterated the goal of Barclays’ restructuring, which is to create “a simplified transatlantic, consumer, corporate and investment bank“, with the dumping of non-core businesses as quickly as possible being a key step along the way. Looking out That more outward-looking strategy should favour Barclays over rivals more focused on the UK and the EU, although I actually remain convinced that the rest of the UK’s banks aren’t in as much danger as many seem to think. Barclays’ slashing of its dividend in order to focus expenditure on its restructuring was a bold move, and a smart one. The others must surely be wondering, in the wake of the referendum result, whether their own strategies of ramping up their dividends as they emerge from the banking crisis are perhaps now looking a bit foolhardy. Lloyds Banking Group, for example, is still forecast to provide a yield of nearly 6% in 2017, at a time when EPS forecasts look weak. Share price boost As a mark of confidence, investors have pushed Barclays shares up since their 2016 nadir of 121p, and today they stand at 235p. That’s an impressive performance, but it should also sound a note of caution, as it has pushed the shares up to a P/E of 18 now, based on 2016 year-end expectations — Lloyds shares are on a P/E of just half that. Still, the City’s analysts are predicting a 50% rise in earnings for Barclays in 2017, which would drop the P/E to a more respectable 12. That’s still a relatively high rating for a bank right now, and I wouldn’t be at all surprised if we have a pause in the recent bullish run in the first half of the year. But if results continue to show positive restructuring progress, I can see an overall upwards trend continuing through the year. What about the dividend? When will Barclays’ dividend start rising again? When the bank announced the cut at the end of 2015, we were told to expect 3p per share for 2016 and 2017, so a resumption of growth this year appears to be out of the question. And the firm’s statement that it expects to “pay out a significant proportion of earnings in dividends to shareholders over time” (my emphasis) suggests to me that if we see any rise in 2018 it will only be a small one. But that to me reinforces the nature of Barclays strategic plans, that they really are aimed at the long term and not at satisfying shareholders with short-term pocket money. Barclays’ 2017 will be very much not about 2017 itself, but about setting the bank up for th
Could Barclays (LSE: BARC) be the runaway winner in the banking sector in 2017 and beyond? Let me tell you why I think it could. The key thing for me is that Barclays is the one that has firmly grasped the Brexit nettle, and it fully understands what it needs to do to minimise the negative effects of the UK leaving the EU. Along with the bank’s third-quarter results, chief executive Jes Staley reiterated the goal of Barclays’ restructuring, which is to create “a simplified transatlantic, consumer, corporate and investment bank“, with the dumping of non-core businesses as quickly as possible being a key step along the way. Looking out That more outward-looking strategy should favour Barclays over rivals more focused on the UK and the EU, although I actually remain convinced that the rest of the UK’s banks aren’t in as much danger as many seem to think. Barclays’ slashing of its dividend in order to focus expenditure on its restructuring was a bold move, and a smart one. The others must surely be wondering, in the wake of the referendum result, whether their own strategies of ramping up their dividends as they emerge from the banking crisis are perhaps now looking a bit foolhardy. Lloyds Banking Group, for example, is still forecast to provide a yield of nearly 6% in 2017, at a time when EPS forecasts look weak. Share price boost As a mark of confidence, investors have pushed Barclays shares up since their 2016 nadir of 121p, and today they stand at 235p. That’s an impressive performance, but it should also sound a note of caution, as it has pushed the shares up to a P/E of 18 now, based on 2016 year-end expectations — Lloyds shares are on a P/E of just half that. Still, the City’s analysts are predicting a 50% rise in earnings for Barclays in 2017, which would drop the P/E to a more respectable 12. That’s still a relatively high rating for a bank right now, and I wouldn’t be at all surprised if we have a pause in the recent bullish run in the first half of the year. But if results continue to show positive restructuring progress, I can see an overall upwards trend continuing through the year. What about the dividend? When will Barclays’ dividend start rising again? When the bank announced the cut at the end of 2015, we were told to expect 3p per share for 2016 and 2017, so a resumption of growth this year appears to be out of the question. And the firm’s statement that it expects to “pay out a significant proportion of earnings in dividends to shareholders over time” (my emphasis) suggests to me that if we see any rise in 2018 it will only be a small one. But that to me reinforces the nature of Barclays strategic plans, that they really are aimed at the long term and not at satisfying shareholders with short-term pocket money. Barclays’ 2017 will be very much not about 2017 itself, but about setting the bank up for th