Barclays Share Discussion Threads

[diku] 30/1/2017 17:48

So why is Lloy down then....if ever there was just one reason for the market to go up or down then we would all be trillionaires....

[fearnwood] 30/1/2017 17:40

It's not a squeeze, it's just that the dollar has weakened against the pound over the last few days. As a pretty big parts of Barcs income is in the US, any variation of the exchange rate directly affects the value of that income in the UK.

[doug stamper] 30/1/2017 17:36

Why the big squeeze on Barcs?

Deregulation announcement from trump. Wtf?

[johnwise] 30/1/2017 17:07

Barclays warns customers of the risks of business email compromise

[bernie37] 30/1/2017 16:16

Since going public in March 2012, shares of BGEO Group (LSE: BGEO) have returned a whopping 175% while those of banking behemoth Barclays (LSE: BARC) have lost 10% in the same time frame. But now that Barclays is finally making tentative progress towards solving the problems that have plagued it since the Financial Crisis, can shares of the British bank catch up to those of the much smaller BGEO group?

Now on the face of it, comparing BGEO, the holding company for Bank of Georgia, and Barclays seems a bit like comparing apples and oranges. However, a retail bank with low operating costs, a very profitable investment bank, no legacy misconduct issues and stunning profitability shows that Bank of Georgia is what Barclays should aspire to be. And the phenomenal returns of BGEO over the past five years show exactly why investors should cheer for this.

The driving forces behind its success have been steady mid-single-digit GDP growth for the past decade in Georgia, and a successful programme of taking market share from competitors by offering best-in-class retail banking capabilities. The bank now has around 30% market share in the country and growing scale has allowed it to keep operating costs much lower than comparable British banks. In first nine months of 2016, Bank of Georgia's cost-to-income ratio was a stunningly low 37.7%, while return on average equity was a very impressive 22.8%.

This high level of profitability combined with top line growth boosted profits by 57.9% year-on-year to £112.2m in the first three quarters of 2016. And with return on equity steadily rising and the bank targeting 20% annual growth in the retail operation over the medium term, there's plenty of potential future profit growth. This is great news for investors as the bank's policy of returning 50% of profits in dividends means analysts are pencilling in a 3.5% dividend yield in the year ahead. BGEO shares are very pricey at 2.4 times book value, but if Bank of Georgia continues to impress, this lofty valuation could make sense in the long term.

Cheap for a reason?

Meanwhile, shares of Barclays are still trading well below their tangible book value at 0.78. There's good reason for this. Return on tangible equity (RoTE) reduced year-on-year in the first nine months of 2016, from 5.8% to 4.4%, as the £44bn of non-core bad assets ran up a staggering £1.4bn loss. While management is making progress in divesting these assets, it's slow going and they will continue to be a drag on the overall group for some time to come.

On the bright side, core operations excluding exceptional items RoTE was a much better 10.7% in the period, driven by solid returns from the UK retail bank and stunning 21.3% RoTE from credit card operations. Unfortunately, fantastic returns from Barclaycard continue to be obscured by the billions of bad assets on the books as well as the massive transsatlantic investment bank whose RoTE in the period was a meagre 8.7%.

With billions of bad assets still to be sold, a management team clinging to an investment bank whose returns lag its cost of capital, a stubbornly high cost-to-income ratio of 73%, and dividends slashed, I'd bet on Barclays' shares continuing to underperform BGEO's in the coming years.

[bernie37] 30/1/2017 12:30

Barclays cut to Sell at Berenberg

[portside1] 30/1/2017 12:13

diku have sent Thomas cook a reply do not send any more hols . its now not safe to fly has we never no who is on the plane ,

seating on the return flight fro lanzs we sat their waiting for a passenger who had not shown up so was searching for their cases , then after 45 mins the captain came out and said we do not have a missing passenger its a mistake at the desk

[portside1] 30/1/2017 12:09

diku we are just waiting for the results

[diku] 30/1/2017 10:53

Is this the Barc thread?....

[mbmiah] 30/1/2017 10:06

That woman Amanda Staverley showing her snout again - decision this week apparently

[portside1] 30/1/2017 08:56

a little info on hols .
trip advisor is being taken over by postS from TRIVAGO EMPLOYEES MADE IT WORTHLESS FALSE INFO BIASED VIEWS FOR TRIVAGO ENDS

[portside1] 30/1/2017 08:42

do you no that coffee is very bad for you health . avoid coffee after midday

coffee is bad for your health . special men

[portside1] 30/1/2017 08:37

looks like we may get a chance to buy more

[portside1] 30/1/2017 08:34

just notice those shouting the most.

starbucks
google
and several others

ALL TAX AVOIDERS AND ALL USE CHEAP LABOUR
REMAINERS ARE STILL TRYING TO DESTROY DEMOCRAY .

[portside1] 30/1/2017 08:34

just notice those shouting the most.

starbucks
google
and several others

ALL TAX AVOIDERS AND ALL USE CHEAP LABOUR
REMAINERS ARE STILL TRYING TO DESTROY DEMOCRACY .

JUST GOT A EMAIL FROM ANNE SOUBREY

SAYING WHY DO YOU BOTHER TO VOTE YOU ARE WASTING YOUR TIME AS A MP I WILL DO EVERTHING TO FIGHT THE DEMOCRATIC VOTE

[bernie37] 29/1/2017 23:09

Can we KEEP this forum to BARCLAYS. Please.

[bothdavis] 29/1/2017 21:26

If you never trust anyone, who can trust you!?