A skyscraper from Churchill Place, the headquarters of Barclays PLC, in Canary Wharf in London, in the United Kingdom, Thursday, January 7, 2021.
Bloomberg | Bloomberg | Getty images
British bank Barclays On Tuesday, beating expectations and announced a share repurchase of 1 billion pounds Sterling ($ 1.33 billion, market volatility, market volatility increased the income from the investment bank.
Before tax profit estimates at 2.5 billion pounds Sterling ($ 3.34 billion) in the second quarter, compared to an average LEG forecast of 2.23 billion pounds. Group revenues have experienced projections of analysts of 7.2 billion pounds Sterling.
Other strengths:
- The return to tangible shares reached 13.2% at the end of the first half, against 14% in the first quarter.
- The profit per share increased to 11.7p of 8.3p.
- The capital ratio CE1, a measurement of banking solvency was 14%, compared to 13.9% in the March quarter.
Investors watched the performance of the lender’s sharpened investment bank unit, which posted an income of 3.3 billion pounds sterling in the three months and June, up 10% in annual shift. An increase in net interests and negotiation income compensates for a drop in advice costs and unit commissions.
Barclays is the last bank to declare higher profits stimulated by market trade in a quarter which included the turbulent repercussions of the pricing policies of American president Donald Trump announced in April. Global actions have plunged before staging a massive rebound, Europe recovers before the American monetary markets has also been shot, the US dollar undergoing a sharp decline.
Deutsche Bank Last week, beat the expectations of profits, helped by a high performance of fixed income securities and currencies. In the United States, Jpmorgan Chase and Morgan Stanley have been one of those who report higher commercial income.
The banking division of investment is the traditional backbone of Barclays income and an objective of cost reductions under the CEO CS Venkatakrishnan unveiled in February 2024.
Venkatakrishnan said on Tuesday in a press release: “We stay on the right track to achieve the objectives of our three -year plan, offering structurally higher and more stable yields for our investors.” In its area, the strategy has provided half its growth in target income, more than half of its growth of weighted assets depending on the risks and two thirds of its 2 billion pounds planned, he added.
Adding to the challenges of Barclays, the pending changes in the leverage of American capital could trigger additional competition in the United States – where the bank has a significant presence since the acquisition of investment and capital companies of Lehman Brothers – in the field of the British lender.
At the national level, Barclays faces a changing British banking landscape, where Spanish Titan Santander doubled its presence in the United Kingdom with the acquisition at the beginning of July of the lender of British High Street TSB of Sabadell, and investors ensure a change of strategic Pugnage of Natwest, which returned to private property in late May.
Sticky inflation could position the Bank of England to adopt a cautious approach to rate reductions, which has an impact on the net margin of the interests of British banks.
