Barclays (BCS) reported a fourth-quarter 2023 adjusted net income attributable to ordinary equity holders of £628 million ($779.7 million). This excluded structural cost actions pre-tax charges of £927 million.Shares of the company jumped almost 7.4% in pre-market trading following the earnings release as investors cheered the business structural overhaul plan and medium-term financial targets.The company recorded lower revenues, along with a rise in credit impairment charges. Operating expenses increased i ...

FY 2023 Results Announcement Delivering against guidance Barclays FY 2023 Results 2 February 2024 Achieved guidance Strong balance sheet Enabled increased across metrics and earnings shareholder distributions 10.6%1 13.8% 8.0p RoTE (target: >10%) CET1 ratio FY23 dividend per share (target: 13-14%) (up 0.75p YoY) 63%1 331p £1.75bn CIR (guidance: low 60s%) ...

Large UK lenders have been criticized once again for offering low rates on their easy access savings accounts. According to Moneyfacts, Barclays PLC, HSBC Holdings PLC, Lloyds Banking Group PLC, NatWest Group PLC, and Banco Santander all offer gross rates of below 2% on savings worth £10,000 in flexible accounts. “Despite the continued focus on passing on interest rates to savers, the big five banks are still yet to make their easy access rates more competitive in relation to the rest of the market,” Moneyf ...

Barclays on Tuesday outlined plans to restructure its business with a view to cutting its costs by £2 billion over the next two years and boosting its returns to shareholders, with a view to paying out £10 billion in share buybacks and dividends between now and 2026.  In a bid to lift its sliding share price, the British bank’s plans will see it restructure itself into five new segments over the next three years – including a U.K. bank, a U.S. consumer bank, a U.K corporate bank, an investment bank, and a p ...

New cost-cutting measures at Barclays PLC (LSE:BARC), aimed at delivering annual savings of £2bn, could result in 17,000 job losses. Analysts at research house Third Bridge estimate a 20% reduction in headcount would be required to achieve the figure being touted. The high street lender currently employs around 85,000 people. Third Bridge believes the cull "would not impact day-to-day operations", and adds: "Previous cost reduction programmes have not been executed effectively, in some part due to its polit ...

Barclays PLC (LSE:BARC) has unveiled a corporate overhaul, £2bn of cost cuts and a £10bn capital return as it looks to enliven the company's sluggish operational and financial performance as part of a new three-year plan. According to chief executive CS Venkatakrishnan, the initiatives are also aimed at "driving higher returns, and predictable, attractive shareholder distributions". In its results statement, Barclays wants to reduce its cost-to-income ratio from its current 63% to the 'high 50s', which mean ...

LONDON - Nov. 5, 2020: Fog shrouds the Canary Wharf business district including global financial institutions Citigroup Inc., State Street Corp., Barclays Plc, HSBC Holdings Plc and the commercial office block No. 1 Canada Square.LONDON — Barclays on Tuesday reported a fourth-quarter net loss of £111 million ($139.8 million) as the British lender announced an extensive strategic overhaul.Analysts polled by Reuters had expected net profit attributable to shareholders of £60.95 million for the quarter, accord ...

Financial Performance - Barclays reported a profit before tax of £7.1 billion for the year ended December 31, 2023, representing a 12% increase compared to £6.3 billion in 2022[14]. - The return on average allocated equity was 12.5% for 2023, up from 11.8% in the previous year, indicating improved profitability[17]. - Operating expenses excluding litigation and conduct charges were £12.5 billion, a decrease of 5% from £13.2 billion in 2022[18]. - The cost: income ratio improved to 62% in 2023, down from 65% in 2022, reflecting better operational efficiency[22]. - Barclays reported a profit before tax (PBT) of £2.9 billion for the UK segment, with a return on equity (RoE) of 14.0% and a return on tangible equity (RoTE) of 19.2%[54]. - Barclays UK reported a profit before tax of £2.6 billion in 2022, with a return on equity of 14.0%[58]. - Income for the Consumer, Cards and Payments division was £4.5 billion in 2022, with a return on equity of 8.4%[82]. - The Corporate and Investment Bank reported an income of £13.4 billion in 2022, with a return on equity of 10.3%[64]. Strategic Initiatives - Barclays plans to expand its digital banking services, targeting a 20% increase in user engagement by the end of 2024[19]. - The company anticipates a growth rate of 3-5% in its core banking segments for 2024, driven by increased demand for financial services[19]. - Barclays is investing £1 billion in technology and innovation over the next three years to enhance customer experience and operational capabilities[19]. - Barclays has set a target to achieve a return on tangible equity of 14% by 2026, supported by strategic cost management and revenue growth initiatives[19]. - The company is actively pursuing strategic acquisitions to enhance its market position, with a focus on fintech and digital solutions[19]. - Barclays aims to improve performance across its five focused businesses, enhancing customer experience and operational efficiency[43]. - The company is targeting a group net interest income of approximately £10.7 billion, excluding Barclays Investment Bank and Head Office[45]. Sustainability and Climate Goals - The company facilitated $67.8 billion in sustainable and transition financing in 2023, demonstrating strong momentum towards its $1 trillion target by 2030[129][140]. - The company has committed to invest up to £500 million of its own capital by the end of 2027, with £138 million already invested in 21 innovative companies[141]. - The company achieved a 93% reduction in Scope 1 and 2 market-based emissions, meeting its 90% reduction target[124]. - Barclays achieved a 100% renewable electricity sourcing for its global real estate portfolio by the end of 2023, ahead of the 2025 target[151]. - The bank aims for a 40% reduction in absolute CO2e emissions by 2030, achieving a 44% reduction against a 2020 baseline of 75.4 MtCO2e[151]. - Barclays has set a target to reduce operational emissions by 80% and procure 90% renewable energy by 2025[158]. - The bank's climate strategy includes a commitment to be a net zero bank by 2050, with updated financing restrictions for carbon-intensive sectors[158]. - Barclays has exceeded its target to facilitate £150 billion of social, environmental, and sustainable financing by 2025[158]. Diversity and Inclusion - At the end of 2023, 5.1% of UK and 21% of US colleagues were from underrepresented ethnicities, surpassing previous ambitions two years early[102]. - The company aims for a further 12.5% increase in underrepresented ethnicities in the UK and 5% in the US by the end of 2025[102]. - Colleague engagement improved by 2 percentage points to 86% in 2023, with positive responses across all engagement metrics[113]. - The graduate intake in 2023 was over 36% female, supporting the company's diversity and inclusion agenda[101]. - The company aims for 33% representation of women in senior leadership roles by the end of 2025, with current representation at 30%[103]. Customer Experience and Engagement - The Net Promoter Score (NPS) for Barclays UK improved to +17 in 2023, indicating enhanced customer satisfaction[92]. - The Consumer Bank Europe achieved a 206% year-on-year growth in its deposit book, reflecting a strong focus on enhancing customer experience[84]. - Barclays UK supported over 47,000 new start-up or scale-up customers in 2023, including Climate Tech start-ups[59]. - The company launched a new Green Barclayloan for Business, offering no arrangement fees for lending above £25,000 on green assets[60]. - Barclays UK provided options to help over 103,000 first-time buyers with their mortgages in 2023[57]. - Barclays UK expanded its network with 159 new sites, totaling 351 sites in 2023[57]. Operational Efficiency - The company is focused on simplifying decision-making and upgrading legacy technology to enhance operational controls[47]. - The corporate bank has achieved over 10% growth in clients compared to 2021, supported by an 18-year average client relationship[51]. - Barclays aims to expand its share in lending and modernize systems to deliver more functionality to clients[51]. - The average energy use intensity across corporate offices improved to 228 kWh/m²/year, a 27% reduction against the 2018 baseline[205]. - The total GHG emissions (location-based) for 2023 were reported at 735.8 thousand tonnes CO2e, down from 815.8 thousand tonnes in 2022[211].

Financial Performance - Group FY23 RoTE of 10.6% and EPS of 32.4p, excluding £0.9bn of Q423 structural cost actions[12] - Group statutory RoTE was 9.0% (2022: 10.4%) with profit before tax of £6.6bn (2022: £7.0bn), including £0.9bn of structural cost actions in Q423[14] - Group RoTE was 5.1% in Q423, down from 8.9% in Q422, with profit before tax of £1.0bn compared to £1.3bn in Q422[16] - Attributable profit decreased to £4,274m, with a return on tangible equity (RoTE) of 9.0% and earnings per share (EPS) of 27.7p[23] - Profit before tax for Q423 was £110 million, significantly lower than £1,885 million in Q323[53] - Profit before tax for Q423 was £568 million, compared to £765 million in Q323[55] - Profit after tax decreased to £5.3 billion (December 2022: £5.9 billion)[180] - Profit after tax for 2023 was £5,259m, a decrease of 11.3% compared to £5,928m in 2022[188] - Total comprehensive income for 2023 was £6,315m, a significant increase from £1,567m in 2022[188] - Basic earnings per ordinary share decreased to 27.7p in 2023 from 30.8p in 2022[192] Capital Distribution and Shareholder Returns - Total capital distributions of £3.0bn announced for 2023, up c.37% on 2022, including a total dividend of 8.0p and share buybacks of £1.75bn[12] - Barclays plans to return at least £10bn of capital to shareholders between 2024 and 2026 through dividends and share buybacks[18] - Share buybacks totaled £1.25bn, with £1.2bn in ordinary share dividends paid and foreseen[169] - The company plans to initiate a share buyback of up to £1.0bn in the first quarter of 2024[194] - Total dividends paid in 2023 were £1,210m, an increase of 17.7% from £1,028m in 2022[194] Net Interest Income and Margins - Group net interest income (NII) of £12.7bn, up 20% year-on-year, with Barclays UK NII of £6.4bn, up 9% year-on-year, delivering a Barclays UK net interest margin (NIM) of 3.13%[12] - Barclays UK net interest income increased 9% to £6,431m, with a NIM of 3.13% (2022: 2.86%)[29][36] - Barclays Group net interest income increased to £12,709m in 2023, up from £10,572m in 2022, driven by higher interest rates and structural hedge income[68] - Barclays Group net interest margin (NIM) rose by 44bps to 3.98% in 2023, compared to 3.54% in 2022, supported by higher balances in Consumer, Cards and Payments (CC&P) and the Gap Inc. portfolio acquisition[69] - Consumer, Cards and Payments net interest income grew to £3,646m in 2023, up from £2,979m in 2022, with a net interest margin of 8.50%, compared to 7.60% in 2022[68] - Corporate and Investment Bank net interest income rose to £1,991m in 2023, up from £1,796m in 2022, with a net interest margin of 3.65%, compared to 3.21% in 2022[68] - Barclays International net interest income increased to £5,637m in 2023, up from £4,775m in 2022, with a net interest margin of 5.78%, compared to 5.02% in 2022[68] Credit Impairment and Loan Losses - Group FY23 loan loss rate (LLR) of 46bps[12] - Credit impairment charges increased to £1.9bn in 2023, up from £1.2bn in 2022, with an LLR of 46bps compared to 30bps in 2022[15] - Barclays UK credit impairment charges remained stable at £0.3bn in 2023, with an LLR of 14bps, consistent with low delinquencies in UK cards and a high-quality mortgage lending portfolio[15] - CC&P credit impairment charges rose to £1.5bn in 2023 from £0.8bn in 2022, with an LLR of 354bps, driven by higher delinquencies in US cards[15] - Credit impairment charges rose to £1,881m, driven by higher delinquencies in US cards, with a total coverage ratio remaining strong at 1.4%[23] - Loan loss rate for Q423 was 54 bps, compared to 42 bps in Q323[53] - The annualised loan loss rate is 46 basis points (bps) after applying the total impairment charge of £1,881 million[80] - Retail credit cards in the UK had a gross exposure of £10,420 million, with an impairment allowance of £710 million[80] - Corporate loans in the UK had a gross exposure of £64,622 million, with an impairment allowance of £751 million[80] - Total Rest of the World loans and advances at amortised cost amounted to £98,142 million, with an impairment allowance of £3,711 million[80] - Retail credit cards in the Rest of the World had a gross exposure of £27,287 million, with an impairment allowance of £2,776 million[80] Cost Management and Efficiency - Group cost: income ratio of 63% excluding Q423 structural cost actions[12] - Targeting Group cost: income ratio of c.63% in 2024 and high 50s in percentage terms in 2026, with total Group operating expenses of c.£17.0bn in 2026[18] - Group total operating expenses increased to £16,931m, with structural cost actions of £927m in Q423 and total structural cost actions for FY23 reaching £1,046m[23] - Cost: income ratio for Q423 was 88%, up from 63% in Q323[53] - Total staff costs for Barclays Group increased to £10,017m in 2023, up from £9,252m in 2022, with group compensation costs as a percentage of total income at 34.4%[72] Capital and Liquidity Ratios - CET1 ratio of 13.8% and tangible net asset value (TNAV) per share of 331p[12] - CET1 ratio stood at 13.8% in 2023, slightly down from 13.9% in 2022, with risk-weighted assets (RWAs) of £342.7bn[15] - CET1 ratio decreased to 13.8%, with RWAs increasing by £6.2bn to £342.7bn, partially offset by a £0.4bn increase in CET1 capital[24] - Liquidity pool decreased to £298.1bn, with the average Liquidity Coverage Ratio (LCR) increasing to 161%, representing a surplus of £117.7bn[25] - Total deposits remained stable at £538.8bn, with the average Net Stable Funding Ratio (NSFR) at 138%, representing a surplus of £167.1bn[26] - Liquidity Coverage Ratio (LCR) increased to 161% in December 2023 from 156% in December 2022, with eligible liquid assets exceeding 100% of net stress outflows[145][147] - Net Stable Funding Ratio (NSFR) was 138% as of December 2023, with a surplus above requirements of £167bn[148][149] - Group liquidity pool decreased to £298bn in December 2023 from £318bn in December 2022, driven by reductions in wholesale funding and deposits[152] Business Segment Performance - Barclays UK income increased 5% to £7.6bn, driven by NII growth from higher rates, including higher structural hedge income[14] - Corporate and Investment Bank (CIB) income decreased 4% to £12.6bn, driven by lower client activity in both Global Markets and Investment Banking[14] - Consumer Cards and Payments (CC&P) income increased 18% to £5.3bn reflecting higher balances in US cards and favourability from higher rates and client balance growth in Private Bank[14] - Barclays UK's total income increased 5% to £7,587m, driven by higher interest rates and structural hedge benefits[29][36] - Barclays UK's Personal Banking income increased 4% to £4,729m, driven by higher interest rates[36] - Barclays UK's Business Banking income increased 16% to £1,894m, driven by higher interest rates[36] - Barclays International's net interest income increased by 26% to £6,197m (December 2022: £4,927m), while net trading income decreased by 24% to £5,878m (December 2022: £7,709m)[38] - Barclays International's total income remained flat at £17,918m (December 2022: £17,867m), with operating costs increasing by 12% to £11,578m (December 2022: £10,361m)[38] - Consumer, Cards and Payments total income increased by 18% to £5,308m (December 2022: £4,499m), driven by a 22% increase in net interest income to £3,646m (December 2022: £2,979m)[43] - CIB income decreased 4% to £12,610m in 2023 from £13,076m in 2022, while CC&P income increased 18% to £5,308m[46] - Global Markets income decreased 16% to £7,218m in 2023, with FICC income down 15% to £4,845m and Equities income down 17% to £2,373m[46] - Investment Banking fees decreased 12% to £1,960m in 2023, with Advisory fees down 23% and Debt capital markets down 10%, while Equity capital markets increased 32%[46] Risk and Capital Management - Barclays expects an LLR of 50-60bps through the cycle and aims to operate within the CET1 ratio target range of 13-14%[18] - The Group's MREL ratio stands at 33.6%, exceeding the regulatory requirement of 30.1% plus a PRA buffer[26] - The Group's CET1 target ratio is 13-14%, with an Overall Capital Requirement of 12.0%[164][165] - The Group issued £14.1bn of MREL eligible instruments in 2023[158] - The UK leverage ratio requirement is 4.1%, comprising a 3.25% minimum requirement and additional buffers[166] - The Group's Pillar 2A requirement increased by 25bps to 4.6%, with at least 56.25% needing to be met with CET1 capital[165] - The Group's MREL requirement is the higher of 25.2% of RWAs or 6.75% of leverage exposures[167] - CET1 capital increased to £47.3bn as of 31.12.23, up from £46.9bn in December 2022[169] - Total regulatory capital stood at 20.1% as of 31.12.23, compared to 20.8% in December 2022[168] - MREL ratio as a percentage of total RWAs was 33.6% as of 31.12.23, slightly up from 33.5% in December 2022[168] - Total RWAs increased to £342.7bn as of 31.12.23, up from £336.5bn in December 2022[168] - Credit risk RWAs for Barclays UK were £73.5bn as of 31.12.23, up from £73.1bn in September 2023[170] - Barclays International's RWAs were £259.1bn as of 31.12.23, compared to £254.8bn in December 2022[171] - Head Office RWAs increased to £10.2bn as of 31.12.23, up from £8.6bn in December 2022[171] - Overall RWAs increased by £6.2 billion to £342.7 billion (December 2022: £336.5 billion)[172] - Credit risk RWAs decreased by £2.2 billion, driven by a £1.3 billion decrease in book size and a £2.6 billion decrease in model updates[173] - Counterparty credit risk RWAs increased by £2.8 billion, primarily due to a £2.1 billion increase in book size and a £2.7 billion increase in methodology and policy[173] - Market risk RWAs increased by £3.9 billion, largely due to a £3.3 billion increase in book size and a £1.2 billion increase in model updates[173] - Operational risk RWAs increased by £1.7 billion, driven by higher 2023 CC&P and Barclays UK income[173] Economic and Market Outlook - UK GDP growth is projected to be 0.5% in 2023, 0.3% in 2024, and 1.2% in 2025, with unemployment rising to 4.8% by 2024[107] - US GDP growth is forecasted at 2.4% in 2023, 1.3% in 2024, and 1.7% in 2025, with unemployment stabilizing at 4.3% from 2024 onwards[107] - The Downside 2 scenario assumes UK GDP could drop to -1.5% in 2024 and -2.6% in 2025, with unemployment peaking at 7.9% in 2025[108] - The Baseline scenario reflects weak GDP growth in the UK and US, with UK house prices declining in 2024 before stabilizing and resuming growth from 2025[109] - US unemployment projected at 3.7% in 2023, rising to 4.7% by 2026 under baseline scenario[114] - UK GDP growth forecasted at -0.8% in 2023, recovering to 1.9% by 2026 under baseline scenario[114] - UK HPI (Halifax House Price Index) expected to decline by 4.7% in 2023, with a recovery to 2.2% by 2026[114] - US federal funds rate projected at 4.8% in 2023, decreasing to 3.0% by 2026 under baseline scenario[114] - Downside 2 scenario shows UK GDP declining by 3.4% in 2023 and 3.8% in 2024, with a recovery to 2.3% by 2026[114] - Upside 2 scenario projects UK GDP growth of 2.8% in 2023, peaking at 3.7% in 2024, and stabilizing at 2.4% by 2026[115] - Scenario probability weighting as of 31.12.23: Upside 2 at 13.8%, Upside 1 at 24.7%, Baseline at 32.7%, Downside 1 at 18.3%, Downside 2 at 10.8%[116] - US HPI (FHFA House Price Index) expected to grow by 1.8% in 2023, increasing to 2.4% by 2026 under baseline scenario[114] - UK GDP growth for 2023 shows a baseline of 1.1%, with upside scenarios reaching up to 13.4% and downside scenarios dropping to -4.1%[117] - US GDP growth for 2023 has a baseline of 1.8%, with upside scenarios peaking at 15.1% and downside scenarios falling to -1.7%[117] - UK unemployment rate for 2023 is projected at 4.7% baseline, with upside scenarios as low as 3.5% and downside scenarios rising to 8.3%[117] - US unemployment rate for 2023 is expected at 4.2% baseline, with upside scenarios at 3.4% and downside scenarios reaching 7.5%[117] - UK HPI (House Price Index) for 2023 shows a baseline growth of 0.1%, with upside scenarios up to 23.8% and downside scenarios dropping to -35.0%[117] - US HPI for 2023 has a baseline growth of 3.7%, with upside scenarios reaching 27.4% and downside scenarios falling to -7.6%[117] Asset and Liability Management - Total assets decreased to £1,477.5bn, reflecting lower derivatives and liquidity pool, partially offset by increased trading securities and client balances[23] - Total assets decreased to £1,477.5 billion (December 2022: £1,513.7 billion)[186] - Total assets increased to £709,930 million in 2023 from £714,828 million in 2022, showing a slight decrease[197] - Trading portfolio assets grew significantly to £174,605 million in 2023 from £133,813 million in 2022, an increase of 30.5%[197] - Financial assets at fair value through the income statement decreased to £206,651 million in 2023 from £213,568 million in 2022, a decline of 3.2%[197] - Derivative financial instruments decreased to £256,836 million in 2023 from £302,380 million in 2022, a drop of 15.1%[197] - Financial assets at fair value through other comprehensive income increased to £71,836 million in 2023 from £65,062 million in 2022, a rise of 10.4%[197] - Total liabilities decreased to £606,252 million in 2023 from £634,181 million in

Barclays PLC (LSE:BARC) (Barclays PLC (LSE:BARC)) results tomorrow will be accompanied by a strategic review of the business and the results might not be pretty. Hargreaves believes there will be a focus on cost reduction rather than material business changes, especially in the UK which sits well above peers on a cost-to-income basis. That will mean job cuts, potentially in the much-debated investment bank, and to soften the blow a big hand-out to investors. Press drops at the weekend suggested this might i ...