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Highlights
- According to the latest figures, Barclay's profits for the final three months of 2022 fell by 4%.
- Barclays pretax profits stood at £7 billion and were down from £8.2 billion the year before.
- Barclays shares on Thursday were trading at GBX 170.76 and were down by -1.07% at the time of writing.
Barclays Plc (LON: BARC) is one of the leading banks in Britain, offering services such as personal, corporate and investment banking across the country and the US through its subsidies. The bank caters to individuals and small businesses through its retail banking services and large businesses and organisations through its corporate and investment banking services.
What's the latest with Barclays?
Leading investment bank Barclays (LON: BARC) suffered a massive 14% drop in annual profits. The costs of a US trading error and increased savings for a possible increase in borrower defaults were the main causes of the decline.The London-listed bank hinted that it intends to launch an up to £500 million share buyback. This figure is significantly lower than what some analysts had expected. Some analysts expected the total share buybacks to be around £675 million.
Further, not just the annual profits but the leading financial institution's pretax profit for 2022 too took a hit in the final quarter. Barclays pretax profits stood at £7 billion and were down from £8.2 billion the year before. The credit impairment charges, too, stood at £1.22 billion, against a net release of £653 million, indicating the macroeconomic deterioration.
The British lender's performance was also affected by the over-issuance of securities in the US. This resulted in litigation and conduct charges totalling £1.6 billion throughout 2022. Earlier this year, Barclays announced that in 2022, it had sold US$15.2 billion more.
Barclays pointed out it has recognised a net attributable loss of around £600 million, including a monetary penalty of $200 million following an investigation by the Securities and Exchange Commission (SEC).
How is Barclays' share price faring?
Barclays shares on Thursday were trading at GBX 170.76 and were down by -1.07% at the time of writing. The leading financial giant had a market cap of £27,403.00 million with an EPS of 0.38. The BARC stock gave its investors positive returns of 7.85% and negative one-year returns of -13.35% on 16 February.
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