Barclays Share Discussion Threads

[smurfy2001] 07/5/2017 16:03

No we don't know the size for definite.

[fearnwood] 07/5/2017 15:49

Smurfy, we know what size of fine the DoJ demanded from Barc was, it's not a mystery. Barc baulked at it and refused to pay, the only unknown is what the fine will be if they lose their legal defence against the DoJ. I still think that this is a game of 'who blinks first' and given the legal precedent of the DoJ recently losing a similar action I expect there will be a settlement at a vastly lower number than the reported $2bn originally demanded. There are hardly any banks left with an outstanding penalty so the DoJ won't really weaken their hand in further negotiations by settling. However I expect the DoJ will definately want to get RBS out of the way first as the level of that fine is expected to be a biggie and then they'll be clear to sort a compromise deal with Barc, so I don't see why this fine is anything to be overly concerned about... The shareprice fall on Friday was almost certainly the markets pricing in the risk of a Le Pen victory as banking stocks are widely expected to be hardest hit in that eventuality. If Macron wins then there should be a bounce back on Monday.

[daniel levi bmd] 07/5/2017 15:30

Great Video.

Of Jekyll & Hyde, ethos Watch it!






Mr Hyde
(Dan)
x

[portside1] 07/5/2017 12:25

risk . balls . what about the BOE those that mis led gov share holders and walked a way with massive pensions
the BOE is corrupt rotten to the core the brown gov rotten to the core
lets not forget the facts

watch panorama I e mailed the FCA IN 2009 STILL NO ANSWER

[riskvsreward] 07/5/2017 10:37

Jes should be fired for misconduct and bringing the business into dispute, without compensation. He has acted either for lack of integrity (the second incident putting him seeking his family interest at the expense of Barclay shareholders) or for lack of judgement, either of them, not to mention both of them probably on his part, should instantly disqualify him for such an important role for such a big bank.

[manics] 07/5/2017 07:12

As I say, nobody is happy with BARC, especially the owners.

"Barclays’ leading investors have turned up the heat on Jes Staley, warning they will seek to remove the embattled chief executive if he makes another mis-step".

[smurfy2001] 06/5/2017 17:49

Fines to date. I reckon this is now a strong sell.

Here's a breakdown of some of the biggest banks and their settlements with the Justice Department in the last few years, ordered from oldest to newest:


JP Morgan (JPM) - $13 billion (2013)
Citigroup (C) - $7 billion (2014)
Bank of America (BAC) - $16.7 billion (2014)
Goldman Sachs (GS) - $5.1 billion (2016)
Morgan Stanley (MS) - $3.2 billion (2016)
Deutsche Bank (DB) - $7.2 billion (this week)
Credit Suisse (CS) - $5.3 billion (this week)

How many billions(?) will Barclays pay if fined?

[riskvsreward] 06/5/2017 09:50

Largely the ceo (and therefore the bods and Chairman in particular) to blame, two bad press revealings in a row. Now one can see why JPM picked Dimon over Jes for its top job.

[luisfrg] 05/5/2017 23:26

Barc was so harshly and in my opinion unfairly battered this week, they're now a 60p discount to Rbs ....unbelievable....and to top that Goldman downgrades to sell....muppets

[clond] 05/5/2017 21:19

Get the DOJ fine out of the way and this could fly .... if it isn't paying out 6 billion dollars.

[bernie37] 05/5/2017 17:15

UK banks have had their issues since the global financial crisis of 2008, but last week was a positive one for three of the UK’s big four.
Lloyds Banking Group, Barclays and Royal Bank of Scotland (RBS) all announced profits for the first quarter of 2017; with Lloyds’ and Barclays’ profits doubling. For RBS it represented a quarterly profit for the first time since Q3 in 2015.

So we have to ask the question: are banks back in the black for good?

Is the answer in the dividends?
Last week also saw the release of Capita’s latest UK Dividend Monitor report. According to Capita’s analysis, the banks and financial industry enjoyed a 7% growth in dividends in Q1 2017. This is the second consecutive quarterly increase in dividends for the industry.

As a quick side note, we must remember financials isn’t just about banks but, as we highlighted in our Spring 2017 Investment Outlook, they do make up a large proportion of that sector. While financials make up 25.7% of the FTSE All Share, banks represent 42% of that.

With this in mind we have taken a look at the dividend yields of the UK's major banks and how strong their future prospects are based on dividend cover, which is the ratio of a company’s net profits to the amount paid out in dividends to shareholders.

Bank Dividend yield Dividend cover View report Invest now
Lloyds Banking Group 3.68% 0.79 VIEW REPORT INVEST
Barclays 1.43% 2.03 VIEW REPORT INVEST
HSBC Holdings 6.17% 0.13 VIEW REPORT INVEST
Royal Bank of Scotland n/a n/a VIEW REPORT INVEST
Past performance is not a reliable indicator of future returns. Note that current yield may not reflect historical yields.

Source: Bloomberg as at 2 May 2017

As the table demonstrates, both Lloyds’ and HSBC’s dividend might not be sustainable in the long term based on the fact they have a dividend cover of less than one (dividend cover is worked out as the amount of profit a company makes divided by the dividend it pays to shareholders).

Barclays, on the other hand, would appear to be a lot more stable with a dividend cover greater than two indicating profits are double what they are paying out to shareholders.

It is also worth noting that even though RBS isn’t currently paying a dividend, rumours persist that it will return to dividend payments this year. The same has been said of Standard Chartered.

Global growth is good for banks

When interest rates start to climb banks will see their profitability climb too, although Richard Buxton, head of UK equities at Old Mutual Global Investors and manager of Old Mutual UK Alpha, cautions not to expect a rise in UK interest rates any time soon.

Despite this Buxton says it is difficult to see why the more economically sensitive areas of the market such as financials should not continue to perform at a time when global growth is rising, and during a period where we have witnessed the end of the great bull market in bonds.

“The recent corporate results season proved earnings in the financials sector are on track for a solid recovery,” he continues. “Balance sheets are repaired, cash returned to shareholders and margins, as one would expect from highly operationally geared businesses, restored.”

While UK banks have underperformed the wider market over the last decade and many fund managers have had little or no exposure, that is changing. Despite a recovery which began in 2016 the opportunity is far from over. For value and contrarian investors such as Alastair Mundy, who runs Investec UK Special Situations, and Nick Kirrange and Kevin Murphy, managers of Schroder Income, banks still look like they could offer some good opportunities over the medium to long term.

The stage appears to be set for a continuation of the banking sector’s recovery, and we will watch the dividend story closely.

Find out what else we had to say about financials and where the opportunities are:

[smurfy2001] 05/5/2017 17:10

Market up Barclays down. Wooof woof.

[runwaypaul] 05/5/2017 15:32

Le Penn

90p

then 60.gl

[smartypants] 05/5/2017 12:07

The gods have spoken... so it shall come to pass....

[sr2day] 05/5/2017 11:50

diku,the chart indicating next support 180p.may get there before the 8th of June.

[spoole5] 05/5/2017 11:33

Maybe goldman's wants to pick up barc on the cheap?

[luisfrg] 05/5/2017 10:49

These are due a big bounce regardless of what Goldman are saying.....

[portside1] 05/5/2017 08:29

catsick. I have from 2009 sent over 32 e mails to the FCA on the wrong doings at the BOE and spoken to them on this issues and the breaking of market rules over HBOS , it appears that they only charge lower ranked people .

people charged with far less crimes than those at the BOE

I GET FOBBED OF EVER TIME ALL I GET IS WE CAN SAY NOTHING FOR 8 YEARS

THE GOVERMMENT SHOULD NOW CLOSE ALL THESE ALLIGATIONS ON THE BANKS AND PUT IT IN TO THE PAST .
THE FCA SHOULD ALONG WITH THE SFO DROP ALL THE CASES BEFORE IT GETS REALLY MUDDY

IF BARCS IS CHARGED WITHQATAR AND JES . THEN WE ARE GOING TO MMAKE A ALLIGATION TO GET IT ALL IN COURT

[diku] 05/5/2017 08:29

I think Goodman reading my posts!....