The headquarters of Barclays Bank, a skyscraper in Churchill Square, Canary Wharf, London, England, Thursday, January 7, 2021.
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london – barclays bank Second-quarter net shareholder profit reported on Thursday was 1.2 billion pounds ($1.54 billion), slightly below the same period last year as net interest income fell in the bank’s core UK unit.
Analysts polled by Reuters expected net profit for the period to be 1.03 billion pounds, down from 1.3 billion pounds in the second quarter of 2023, according to London Stock Exchange Group (LSEG) data.
Shares were up 2% at 8:09 a.m. London time.
Barclays’ latest quarterly revenue was 6.3 billion pounds, above expectations of 6.25 billion pounds. It also announced a share buyback program of up to 750 million pounds.
From January to June, Barclays Consumer Bank’s net interest income fell 4% from the same period last year to 3.15 billion pounds, and the net interest margin dropped from 3.2% to 3.15%. Barclays’ revenue fell 6% as lower liquidity pool revenue offset rising interest rates.
Its investment banking business performed even stronger, with second-quarter revenue rising 10% to 3.02 billion pounds.
Barclays share price.
Max Georgiou, an analyst at research firm Third Bridge, said Barclays’ investment banking revenue exceeded expectations and provided positive information for the bank’s medium-term goals.
“To continue executing on this strategy, we expect to continue to focus on renewed U.S. market share growth,” Georgiou said.
On Thursday, Barclays also raised its group’s full-year net interest income target (excluding head office and investment banking divisions) to about 11 billion pounds from the previous 10.7 billion pounds.
Other highlights of the results include:
- Credit impairment charges increased by 400 million pounds year-on-year in the second quarter.
- The common equity tier 1 (CET1) capital ratio, which measures a bank’s financial strength, was 13.6%, down from 13.8% in December 2023.
Reorganization is in progress
The British bank launched a major restructuring this year aimed at improving efficiency and increasing profits, pushing its shares up 52% ​​year to date.
Launching the scheme resulted in a net loss of £111m Season 4 2023, but the bank returns to profitability in 2023 Season one Despite the annual decrease in income.
Group chief executive CS Venkatakrishnan said on Thursday that the three-year plan was making “good progress”, with a return on tangible equity of 11.1% from January to June, achieving the full-year target of over 10%.
Venkatakrishnan said: “We completed the sale of our Italian mortgage business, announced the sale of our German consumer finance business, and are on track to complete the acquisition of Tesco Bank in November 2024.”
The bank’s reorganization split its corporate and investment banking businesses into Barclays UK, Barclays UK Corporate, Barclays Private Banking and Wealth Management, Barclays Investment Bank and Barclays US Consumer Bank.
