Barclays: share drops as 2023 forecasts lowered
(CercleFinance.com) - On Tuesday, Barclays recorded the biggest fall in the FTSE 100 index in London (about -8%), after the bank reduced some of its profitability targets for 2023.
This morning Barclays announced that it was only targeting a net interest margin - i.e. the difference between what it pays on deposits and what it earns on loans - of 3.05% to 3.10% this year, against a
previous target net interest margin of 3.15% for the full year, in line with the consensus.
In another disappointment, the financial institution said it was aiming for a cost/income ratio of just over 60% in 2023 because of the investment needed to ensure its growth, far from its medium-term target of a ratio of less than 60%.
It also said that it was assessing new measures aimed at reducing its structural costs and boosting future profitability, which it believes could lead to the recognition of "significant" new charges through to the end of the year.
These comments overshadowed Q3 results that were in line with, or even slightly better than, forecasts, in a market environment that the group's management described as "subdued".
Barclays reported a 13% rise in taxable profit to £6.45bn for the quarter, driven by strength in its UK retail, cards and payments businesses. Meanwhile, revenues from its global investment banking division Barclays International edged up just 1% to £14.16bn.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
This morning Barclays announced that it was only targeting a net interest margin - i.e. the difference between what it pays on deposits and what it earns on loans - of 3.05% to 3.10% this year, against a
previous target net interest margin of 3.15% for the full year, in line with the consensus.
In another disappointment, the financial institution said it was aiming for a cost/income ratio of just over 60% in 2023 because of the investment needed to ensure its growth, far from its medium-term target of a ratio of less than 60%.
It also said that it was assessing new measures aimed at reducing its structural costs and boosting future profitability, which it believes could lead to the recognition of "significant" new charges through to the end of the year.
These comments overshadowed Q3 results that were in line with, or even slightly better than, forecasts, in a market environment that the group's management described as "subdued".
Barclays reported a 13% rise in taxable profit to £6.45bn for the quarter, driven by strength in its UK retail, cards and payments businesses. Meanwhile, revenues from its global investment banking division Barclays International edged up just 1% to £14.16bn.
Copyright (c) 2023 CercleFinance.com. All rights reserved.