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British Bank shares Barclays Stop in the early Thursday, after the lender's guidelines did not impress despite the full annual profit before tax.
According to LSEG, profit before taxation increased by 24% to 8.108 billion pounds in 2024, slightly above the analytics forecast worth 8.081 billion pounds.
Net profit assigned to shareholders also increased by 24% to 5.316 billion pounds in 2024, but did not reach £ 5,449 billion expected by analysts. The profit that can be attributed to the fourth quarter amounted to 965 million pounds, below 994 million pounds of analysts' perspectives for this period.
The total income of the lender increased to 6.96 billion pounds in three months to the end of December, compared to 5.6 billion pounds in the fourth quarter of 2023, with the basic investment and retail units of Barclays record 28% and 46% year on year Increase up to £ 2.61 and 2.62 billion pounds, respectively.
The return of the group with tangible equity, the measure of profitability, was on average 10.5% in 2024, compared to 9% in the previous year – because the bank set growth goals to about 11% in 2025 and to over 12% in 2026 r.
The bank also decides to achieve net interest income (Nii) – a key profitability indicator that indicates the money that the bank granted from loans after subtracting interest paid from deposits – this year 7.4 billion pounds within the retail unit, according to the expectations cited by Citi analysts.
“New 2025 guidelines for NII, costs and rote are essentially in line with the consensus, and 2026 goals remain unchanged. Generally a solid set of results, but not much new to get excited. This, plus a strong run in the price of shares over the past year, can soften any initial reaction, but in our opinion the actions still seem inexpensive – they said.
Benjamin Toms from the RBC told CNBC that when entering the results, it was expected that Barclays could improve its perspectives compared to the strategy plan of Bank 2024 – but instead “today's” today's news was a very repetition of existing tips. “
“There was a slight disappointment in an interview with Nia. But our presentation is that the management is probably a bit conservative here, “he added.
“The results themselves look satisfactory, but the prospects are disappointing. In particular, there are no changes in the purposes of FY26 (we expected an increased return of capital), and the go25 goals look in the line with consensus, except for a slight reduction in Banking Nii – surprising, taking into account Q4 Beat, “said KBW analysts in the note.
Barclays shares lose about 6% before they slightly note the losses, ending the day by 4.7% lower.
Restructuring
From last year, Barclays implements a strategic review to reduce costs by $ 2 billion by 2026, increase the returns of shareholders and stabilizes financial phrases, sharpening its concentration on profitable consumer and loan operations – and leading to the option of conducting consumer and loan operation – and leading to absorption from the retail industry of the British grocery store Tesco's.
However, Barclays' Traditionally, a strong banking unit could now benefit from a larger open market share in the domestic space, as HSBC announced last month Preparation for the exit Mergers and acquisitions and capital capital in Europe, Great Britain and the United States in the midst of greater restructuring of investment banking.
The bank is also recovering after sweeping Three -day technological failure This disrupted payments and transactions at the end of last month, which was resolved.
To put it more, lenders fought with their lethargy in the British economy and withdrawing the activities of IPO on the London Stock Exchange. Bank of England Performed his first rate reduction last week and signaled subsequent finishes in 2025 in connection with the reduction of the Economic Forecast of Great Britain – easily monetary usually eating banking profits, because it exacerbates the spread between reimbursement of loan loans and deposit payments. British and European banks are also trying to keep pace with counterparts in the USA, which could take advantage of the additional competitive advantage if the newly inaugurated US President Donald Trump undertakes a lighter approach to local regulations.
At the same time, the Minister of Finance of Great Britain Rachel Reeves is distinguished by the British financial authorities in order to promote competitiveness in tandem with consumer protection, while markets are observing the government's government's increase in financial services and competitiveness in spring.