Barclays PLC Unveils 33% Drop In Profit

Barclays PLC’s (LON: BARC) profit significantly short of the previous year’s £7 billion.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

barclaysThe shares of Barclays (LSE: BARC) (NYSE: BCS.US) rose nearly 2% to 176p in late trading this morning after the bank released profit figures a day early. The bank’s pre-tax profits for 2013 fell by 33% to a little over £5.2bn, which is below the £5.4bn forecast by analysts.

In addition, Barclays is expected to confirm the total amount of its bonus payments for 2013 tomorrow. Antony Jenkins, the chief executive, waived his £2.75m annual bonus in order to head off potential criticisms of the bank’s bonus structure. In 2012 the bank paid a little north of £2bn in bonuses.

A cost-cutting drive is currently under way at the bank — which terminated 1,700 jobs last year — in order to improve a return on capital as a result of stricter regulation. The bank is expected to reduce the size of its investment bank by 20% and thousands more jobs are at risk.

Today’s statement is released after it emerged this weekend that details from up to 27,000 customers’ accounts were stolen and then sold to rogue traders. The information includes customers’ earnings, savings, mortgages, health issues and insurance information. 

Before today, analysts were expecting Barclays’ upcoming annual results to show earnings at 29p per share, and a dividend equivalent to 7p per share.

After this morning’s price movement the shares may therefore trade on a P/E of 6 and offer a potential income of around 4%.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Mark does not own shares in Barclays.

More on Investing Articles

Illustration of flames over a black background
Investing Articles

2 red-hot UK growth stocks to consider buying in April

These two growth stocks are performing well, but can they continue to deliver for investors through 2024 and beyond?

Read more »

Charticle

Is JD Sports Fashion one of the FTSE 100’s best value stocks? Here’s what the charts say!

The JD Sports Fashion share price remains a wild ride during the first quarter. Could it be one of the…

Read more »

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »