Barclays Surpasses Profit Expectations and Increases Shareholder Payouts
Aug 3, 2021
On Wednesday, Barclays surpassed second-quarter profit estimates and increased shareholder dividends, with record earnings in its investment banking and equities divisions.
The British lender earned £2.1 billion ($2.9 billion) in quarterly attributable profit, up from £90 million in the second quarter of 2020. According to Refinitiv, experts had anticipated that net reported income for the three months through the end of June would be £1.7 billion.
Investment banking and equity fees rose 27% and 238%, respectively, in the second quarter.
With a further share buyback of up to £500 million and a half-year dividend of 2 pence per share, the company announced increased capital dividends to shareholders.
According to the bank's first-quarter results report, the bank saw a large drop in credit loss provisions, releasing almost £800 million from its credit impairment provisions, compared to a £1.6 billion charge for the same time in 2020.
In a statement, CEO Jes Staley said, "Our profitability, solid capital position, and balance sheet have enabled us to raise capital dividends to shareholders," adding that the bank is experiencing a revival in activity across its divisions.
“With Global Markets and Investment Banking fees income up 36% since 2019, our CIB (corporate and investment banking) business is well-positioned to benefit from continued growth in debt and equity capital markets, and our strong retail businesses are poised to support and benefit from a consumer recovery.”
In early trade, Barclays stock was up 4.7 percent.
Other noteworthy events for the quarter include:
1) Revenues for the group totaled £5.4 billion, up from £5.34 billion a year earlier.
2) The CET 1 ratio, a measure of bank solvency, increased to 15.1% from 14.2% a year ago.
The trading business for fixed income, currencies, and commodities (FICC) was down 37% in the first half of the year compared to a remarkable first half of 2020 when coronavirus-induced market volatility pushed up trade volumes.
Due to coronavirus-related charges, a real estate assessment, more structural cost action, and pay increases, Barclays has previously stated that it anticipates costs to grow in 2021 compared to the previous year.
Subscribe Our Newsletter
Purchasing a stock appears to be simple, but buying the appropriate stock at the right moment without a proven plan is extremely difficult. So, which Robinhood stocks should you purchase right now or add to your watchlist?
Stocks
Following months of price increases, the Fed's argument that higher inflation would be "transitory" is beginning to appear a little flimsy.
Stocks
Constantine
Hanging Man Pattern: How to Identify and Trade It EffectivelyMarkets have a unique way of communicating — and the shapes of candlesticks are among their most telling indicators. The hanging man pattern, while appearing as a subtle hint, frequently indicates something significant: a possible shift in direction. It’s a small candlestick on the chart that conveys a powerful message — a caution that the […]
Trading