Barclays Plc (BCS) will face a proposed class action by shareholders, accusing the bank of securities fraud related to the sale of debt in excess of what was allowed by regulators.This means that the securities Barclays issued in previous years were not registered with the Securities and Exchange Commission (“SEC”).U.S. District Judge Katherine Polk Failla in Manhattan said shareholders adequately alleged that Barclays' failure to disclose internal controls failures, which led to five years of unregistered ...

Barclays (BCS 12.05%) stock made big gains Tuesday, ending the trading session up 11.7%, according to data from S&P Global Market Intelligence.The British banking and financial services company announced its fourth-quarter results before the market opened, reporting earnings that fell short of Wall Street's target. It posted a net loss of roughly 111 million pounds (roughly $140.1 million) on sales of 5.6 billion pounds (roughly $7.07 billion). The average analyst estimate had called for it to post a profit ...

Financial Data and Key Metrics Changes - The return on tangible equity (RoTE) for 2023 was 10.6%, in line with the target of above 10% [2][5] - Group profit before tax was £7.5 billion, down 3% year-on-year, while total income increased by £0.7 billion [6] - The cost-to-income ratio was 63%, consistent with guidance for the low 60s [2][10] - Tangible book value per share increased by £0.36 year-on-year to £0.331, and the CET1 ratio was 13.8%, at the top end of the target range [3][23] Business Line Data and Key Metrics Changes - Barclays UK income was up 5%, driven by net interest income growth from rate increases, despite lower card income [6][15] - Consumer cards and payments income grew 18%, supported by higher margins and balanced growth in US cards and the Private Bank [7][19] - Corporate and Investment Bank income decreased by 4%, impacted by lower market volatility and a record low banking wallet [7][20] Market Data and Key Metrics Changes - Net interest income across the bank grew by £2.1 billion or 20% year-on-year, with a group net interest margin (NIM) increase to 3.98% [7][8] - The structural hedge generated £3.6 billion in gross hedge income in 2023, up from £2.2 billion in the prior year [8][9] - The US cards portfolio showed elevated loan loss rates, with a full-year charge of £1.5 billion in consumer cards and payments [12][13] Company Strategy and Development Direction - The company aims to improve RoTE from 9% in 2023 to above 12% by 2026 and plans to distribute at least £10 billion to shareholders between 2024 and 2026 [52][53] - The strategy includes simplifying the business structure and enhancing operational performance while maintaining a strong capital position [46][47] - The company is focused on growing its UK presence and expanding its role in the US market, particularly in unsecured lending [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial targets and highlighted the importance of operational excellence to preserve reputation and protect shareholder interests [50][51] - The outlook for 2024 includes expectations for a reduction in deposits and mortgages, with a gradual return to growth anticipated in the second half of the year [17][39] - Management acknowledged the challenges in the market environment but emphasized reasonable assumptions for revenue growth [28][29] Other Important Information - The company announced a £1 billion share buyback, which will reduce the CET1 ratio to 13.5% [23] - Structural cost actions in Q4 amounted to £927 million, aimed at improving efficiency and productivity [11] - The company is in advanced discussions to sell its German consumer business and Italian mortgage book, completing its exit from European retail outside the UK [54] Q&A Session Summary Question: Market performance in Q4 and guidance for 2024 - Management indicated that assumptions for the market environment in 2024 are reasonable, with no expected increase in the market wallet [28] Question: Tesco acquisition versus share buyback - The Tesco acquisition is seen as a way to accelerate growth in unsecured lending, balancing shareholder returns with investments [29] Question: UK NIM volatility - Management expects the volatility in the UK NIM to smooth out over 2024, with no significant reversals anticipated [31] Question: UK mortgages and US cards capital requirements - The UK mortgage market is experiencing negative net trends due to refinancing activity, while the US cards business is undergoing an IRB conversion, which was anticipated [34][35] Question: Deposit dynamics in Q4 - The stabilization of deposits in Q4 was attributed to slower customer migration and stabilization in pricing, leading to a better-than-expected NIM [37] Question: Equities business performance - The equities business performed adequately in Q4, with no specific issues highlighted [41] Question: Non-NII in UK and corporate revenues in CIB - Non-NII in the UK was impacted by the transfer of the UK Wealth business, while corporate lending income remains stable despite some costs [44]

Key TakeawaysBarclays announced a shake-up to its operations and announced billions in cost cuts, as well as stock buybacks.The bank will now be divided into five divisions, including a U.S. consumer bank unit.Barclays plans to reduce expenses by $2.53 billion and repurchase at least $12.66 billion in shares by 2026.American Depositary Receipts (ADRs) of Barclays Plc (BCS) soared on Tuesday as the U.K.-based bank announced a major restructuring as well as plans to slash costs and return billions to sharehol ...

Barclays (BCS) reported a fourth-quarter 2023 adjusted net income attributable to ordinary equity holders of £628 million ($779.7 million). This excluded structural cost actions pre-tax charges of £927 million.Shares of the company jumped almost 7.4% in pre-market trading following the earnings release as investors cheered the business structural overhaul plan and medium-term financial targets.The company recorded lower revenues, along with a rise in credit impairment charges. Operating expenses increased i ...

FY 2023 Results Announcement Delivering against guidance Barclays FY 2023 Results 2 February 2024 Achieved guidance Strong balance sheet Enabled increased across metrics and earnings shareholder distributions 10.6%1 13.8% 8.0p RoTE (target: >10%) CET1 ratio FY23 dividend per share (target: 13-14%) (up 0.75p YoY) 63%1 331p £1.75bn CIR (guidance: low 60s%) ...

Large UK lenders have been criticized once again for offering low rates on their easy access savings accounts. According to Moneyfacts, Barclays PLC, HSBC Holdings PLC, Lloyds Banking Group PLC, NatWest Group PLC, and Banco Santander all offer gross rates of below 2% on savings worth £10,000 in flexible accounts. “Despite the continued focus on passing on interest rates to savers, the big five banks are still yet to make their easy access rates more competitive in relation to the rest of the market,” Moneyf ...

Barclays on Tuesday outlined plans to restructure its business with a view to cutting its costs by £2 billion over the next two years and boosting its returns to shareholders, with a view to paying out £10 billion in share buybacks and dividends between now and 2026.  In a bid to lift its sliding share price, the British bank’s plans will see it restructure itself into five new segments over the next three years – including a U.K. bank, a U.S. consumer bank, a U.K corporate bank, an investment bank, and a p ...

New cost-cutting measures at Barclays PLC (LSE:BARC), aimed at delivering annual savings of £2bn, could result in 17,000 job losses. Analysts at research house Third Bridge estimate a 20% reduction in headcount would be required to achieve the figure being touted. The high street lender currently employs around 85,000 people. Third Bridge believes the cull "would not impact day-to-day operations", and adds: "Previous cost reduction programmes have not been executed effectively, in some part due to its polit ...

Barclays PLC (LSE:BARC) has unveiled a corporate overhaul, £2bn of cost cuts and a £10bn capital return as it looks to enliven the company's sluggish operational and financial performance as part of a new three-year plan. According to chief executive CS Venkatakrishnan, the initiatives are also aimed at "driving higher returns, and predictable, attractive shareholder distributions". In its results statement, Barclays wants to reduce its cost-to-income ratio from its current 63% to the 'high 50s', which mean ...