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Highlights
- The global bank has reported a full-year net profit of £6.38 billion, from £1.52 billion in FY 2020, much above analysts’ expectations of £5.75 billion.
- It has announced that it will buy back £1 billion of its own shares as it has generated record annual profit.
FTSE 100-listed global universal bank Barclays Plc (LON: BARC) is back news again after posting a bumper full-year earnings update on 23 February 2022. The bank operates has two divisions, Barclays UK and Barclays International, and is supported by service unit Barclays Executive Services. The high street bank also announced its plan to buyback £1 billion of its own shares as it has generated record annual profit as dealmakers helped offset a slump in trading activity.
Spectacular Result
The bank has demonstrated a clear and sustainable path of growth over the course of FY2021. The FTSE100 banks are looking at better results after the challenging pandemic period.
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Barclays has reported a full-year net profit of £6.38 billion, which was £1.52 billion in FY 2020, mostly due to a boom in its investment banking and corporate business.
The high street bank reported an increase in total income by 1% to £21.9 billion for the full year, from £21.8 billion in FY2020. The profit before tax stood at £8.4 billion in FY2021 from 3.1 billion in FY2020, driven by the huge reduction in credit impairment charges for bad loans and good performance from its investment arm.
Return on Tangible Equity (RoTE) stood at 13.4% across its operating businesses, resulting in a meaningful increase in distributions equivalent to 15p per share and returning £2.51 billion of excess capital. The corporate and investment bank division delivered its strongest ever profit before tax of £5.8 billion, up from £4 billion in 2020.
It has announced its plan to buy back £1 billion of its own shares and the total dividend for 2021 stood at 6.0 pence per share, including an increase of 4 pence per share. It has increased its staff bonus pool by £365 million to £1.9 billion in 2021 from £1.5 billion in 2020, with around £667 million being paid as deferred bonuses.
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Board Change
Bank’s Finance Director and Exclusive director Tushar Morzaria has decided to retire, with effect from 22 April 2022, and his place will be taken by current Deputy Group Finance Director Anna Cross reporting to group CEO C.S. Venkatakrishnan.
Stock Performance
Barclays Plc has a primary listing on the London Stock Exchange under the ticker BARC and is a constituent of the FTSE 100 Index. It also has a secondary listing on the New York Stock Exchange.
The current market cap of Barclays Plc stands at £32,839.47 million, and its shares’ value soared by 16.46% over the last one year as of 23 February 2022. The shares of financial services provider were trading at GBX 185.66, down by 5.27%, at 9:45 AM (BST) on 24 February 2022.
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Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
