Share Name Share Symbol Market Type Share ISIN Share Description
Barclays LSE:BARC London Ordinary Share GB0031348658 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -4.70p -2.00% 230.55p 230.55p 230.60p 233.50p 229.20p 233.50p 14,303,719.00 12:45:27
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Banks 25,987.0 2,073.0 -1.9 - 39,062.94

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12:45:27230.555931,367.16AT
12:45:27230.555801,337.19AT
12:45:27230.558091,865.15AT
12:45:27230.551,1502,651.33AT
12:45:18230.502,2535,193.17AT
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DateSubject
16/1/2017
08:20
Barclays Daily Update: Barclays is listed in the Banks sector of the London Stock Exchange with ticker BARC. The last closing price for Barclays was 235.25p.
Barclays has a 4 week average price of 229.86p and a 12 week average price of 214.36p.
The 1 year high share price is 240.20p while the 1 year low share price is currently 121.10p.
There are currently 16,943,370,003 shares in issue and the average daily traded volume is 36,771,815 shares. The market capitalisation of Barclays is £39,071,411,226.92.
09/1/2017
21:39
mj19: Barclays plc: what to expect in 2017Barclays signCould Barclays (LSE: BARC) be the runaway winner in the banking sector in 2017 and beyond? Let me tell you why I think it could.The key thing for me is that Barclays is the one that has firmly grasped the Brexit nettle, and it fully understands what it needs to do to minimise the negative effects of the UK leaving the EU.Along with the bank's third-quarter results, chief executive Jes Staley reiterated the goal of Barclays' restructuring, which is to create "a simplified transatlantic, consumer, corporate and investment bank", with the dumping of non-core businesses as quickly as possible being a key step along the way.Looking outThat more outward-looking strategy should favour Barclays over rivals more focused on the UK and the EU, although I actually remain convinced that the rest of the UK's banks aren't in as much danger as many seem to think.Barclays' slashing of its dividend in order to focus expenditure on its restructuring was a bold move, and a smart one. The others must surely be wondering, in the wake of the referendum result, whether their own strategies of ramping up their dividends as they emerge from the banking crisis are perhaps now looking a bit foolhardy. Lloyds Banking Group, for example, is still forecast to provide a yield of nearly 6% in 2017, at a time when EPS forecasts look weak.Share price boostAs a mark of confidence, investors have pushed Barclays shares up since their 2016 nadir of 121p, and today they stand at 235p. That's an impressive performance, but it should also sound a note of caution, as it has pushed the shares up to a P/E of 18 now, based on 2016 year-end expectations -- Lloyds shares are on a P/E of just half that.Still, the City's analysts are predicting a 50% rise in earnings for Barclays in 2017, which would drop the P/E to a more respectable 12. That's still a relatively high rating for a bank right now, and I wouldn't be at all surprised if we have a pause in the recent bullish run in the first half of the year. But if results continue to show positive restructuring progress, I can see an overall upwards trend continuing through the year.What about the dividend?When will Barclays' dividend start rising again? When the bank announced the cut at the end of 2015, we were told to expect 3p per share for 2016 and 2017, so a resumption of growth this year appears to be out of the question. And the firm's statement that it expects to "pay out a significant proportion of earnings in dividends to shareholders over time" (my emphasis) suggests to me that if we see any rise in 2018 it will only be a small one.But that to me reinforces the nature of Barclays strategic plans, that they really are aimed at the long term and not at satisfying shareholders with short-term pocket money.Barclays' 2017 will be very much not about 2017 itself, but about setting the bank up for the years that follow. And I like that kind of long-term thinking.Can Barclays help you make a million?Investing in shares like Barclays for the long term really is the best route that most of us can take to achieve millionaire status. To find out more, check out the Fool's 10 Steps To Making A Million In The Market report, which takes you through all you need to know, in simple steps.
06/1/2017
17:59
bernie37: Barclays sign Could Barclays (LSE: BARC) be the runaway winner in the banking sector in 2017 and beyond? Let me tell you why I think it could. The key thing for me is that Barclays is the one that has firmly grasped the Brexit nettle, and it fully understands what it needs to do to minimise the negative effects of the UK leaving the EU. Along with the bank's third-quarter results, chief executive Jes Staley reiterated the goal of Barclays' restructuring, which is to create "a simplified transatlantic, consumer, corporate and investment bank", with the dumping of non-core businesses as quickly as possible being a key step along the way. Looking out That more outward-looking strategy should favour Barclays over rivals more focused on the UK and the EU, although I actually remain convinced that the rest of the UK's banks aren't in as much danger as many seem to think. Barclays' slashing of its dividend in order to focus expenditure on its restructuring was a bold move, and a smart one. The others must surely be wondering, in the wake of the referendum result, whether their own strategies of ramping up their dividends as they emerge from the banking crisis are perhaps now looking a bit foolhardy. Lloyds Banking Group, for example, is still forecast to provide a yield of nearly 6% in 2017, at a time when EPS forecasts look weak. Share price boost As a mark of confidence, investors have pushed Barclays shares up since their 2016 nadir of 121p, and today they stand at 235p. That's an impressive performance, but it should also sound a note of caution, as it has pushed the shares up to a P/E of 18 now, based on 2016 year-end expectations -- Lloyds shares are on a P/E of just half that. Still, the City's analysts are predicting a 50% rise in earnings for Barclays in 2017, which would drop the P/E to a more respectable 12. That's still a relatively high rating for a bank right now, and I wouldn't be at all surprised if we have a pause in the recent bullish run in the first half of the year. But if results continue to show positive restructuring progress, I can see an overall upwards trend continuing through the year. What about the dividend? When will Barclays' dividend start rising again? When the bank announced the cut at the end of 2015, we were told to expect 3p per share for 2016 and 2017, so a resumption of growth this year appears to be out of the question. And the firm's statement that it expects to "pay out a significant proportion of earnings in dividends to shareholders over time" (my emphasis) suggests to me that if we see any rise in 2018 it will only be a small one. But that to me reinforces the nature of Barclays strategic plans, that they really are aimed at the long term and not at satisfying shareholders with short-term pocket money. Barclays' 2017 will be very much not about 2017 itself, but about setting the bank up for the years that follow. And I like that kind of long-term thinking.
07/12/2016
08:50
3rd eye: Barclays PLC 18.6% Potential Upside Indicated by HSBC Barclays PLC with EPIC/TICKER LON:BARC had its stock rating noted as ‘Reiterates217; with the recommendation being set at ‘BUY’ this morning by analysts at HSBC. Barclays PLC are listed in the Financials sector within UK Main Market. HSBC have set a target price of 250 GBX on its stock. This is indicating the analyst believes there is a potential upside of 18.6% from the opening price of 210.8 GBX. Over the last 30 and 90 trading days the company share price has increased 25.6 points and increased 38 points respectively. Barclays PLC LON:BARC has a 50 day moving average of 192.04 GBX and the 200 Day Moving Average price is recorded at 171.82 GBX. The 1 year high for the stock price is 267.32 GBX while the 52 week low for the stock is 121.1 GBX. There are currently 16,960,455,506 shares in issue with the average daily volume traded being 50,527,720. Market capitalisation for LON:BARC is £37,100,996,419 GBP. Barclays PLC is a global financial services holding company. The Company is engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management and investment management services. The Company’s segments include Barclays UK and Barclays Corporate & International.
09/10/2016
21:37
bernie37: Share this Can Barclays close the Brexit gap? technical analysis trends targetsBarclays (BARC) is always a worthwhile subject as our readership spikes, despite the price rarely actually doing anything interesting! However, by a stonking 0.2p, the share price did something unusual on 5 October. We've been breathlessly waiting for the share price to better 172.5p and, despite it closing at 172.45p, the share hit 172.7p during the session - and sometimes these little twitches are early warning of "stuff". The immediate situation now is of movement above 172.7p leading to a near-term 179.5p, a rubbish movement and not even capable of covering the Brexit manipulation gap at 186.95p. However, there are a couple of things worth taking into consideration, if 179.5p is bettered. graph 1 Firstly, Barclays has bettered its immediate downtrend ('blue') and, despite resting in a region with a logical bottom around 155p currently, from our perspective it has moved from "going down" to "not going down". Secondly, by 0.2p, the share price hinted of a movement from "not going down" to "maybe going up", if we take our calculations seriously. In an ideal world, the share price would have actually closed above 172.5p, as this would inspire confidence. But the FTSE 100 (UKX) was having minor hysterics and expecting a retail bank to avoid the effects would be silly. Third, there's the "glass ceiling" (invisible pink line) around 187p and closure above this is liable to suggest some proper upward travel of strength in Barclays' future. Our secondary target above 179.5p is at 206p, capable of allowing closure above 187p and suggesting good things in the future for this share. If we use those shares which have bettered the Brexit manipulation, this carries an implication of 228p being a distant point of interest. Finally, what does Barclays need do to undermine this level of nerd? The price needs to deposit itself below 'blue' - currently 155p - to turn our projections to mush. This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
17/8/2016
06:18
sue999: http://www.fool.co.uk/investing/2016/08/16/head-to-head-barclays-plc-and-ht-group-plc/ Barclays (LSE: BARC) and H&T Group (LSE: HAT) both sit in the FTSE’s broad ‘Financials’ sector. However, in many respects they’re very different companies. Barclays is a FTSE 100 giant, valued at over £27bn, while H&T is listed on AIM and has a market cap of £110m. The retail division of Barclays serves a largely different customer to those who use H&T’s pawnbroking and associated services. And, thanks to its corporate and investment banking and cards and payments businesses, Barclays generates almost half its income from outside the UK, while H&T operates solely in the domestic market. Share performance of the two companies this year — particularly since the Brexit vote — has also been markedly different. Barclays is trading 12% below its pre-referendum price, and has fallen 25% since the start of the year. H&T has gained 50% year-to-date, with over 30% coming post-referendum. The Brexit effect In today’s interim results for the six months to 30 June, H&T reported a 42% rise in pre-tax profit “through a combination of strong operational performance and a rising gold price”. The gold price averaged £852 per troy ounce for the half year compared with £791 in the same period last year. Furthermore, the average for July was £1,017, which bodes well for a strong second half. The performance of Barclays, of course, like all banks, is linked to the economic cycle. Downgraded economic forecasts and a Bank of England interest rate cut since the Brexit vote aren’t ideal for Barclays, although quantitative easing (of which we have a new round) has previously helped investment banks outperform those focused solely on retail and commercial banking. Meanwhile, H&T is in many ways a counter-cyclical business. However, it does have to carefully manage the business in phases of falling gold prices, as well as enjoying (as it is at present) the turbo-boost of gold heading north. We can see, then, why shareholders of Barclays and H&T have experienced such markedly contrasting fortunes this year. But what of current valuations and longer-term prospects? Two to buy? Today’s results show H&T’s strong balance sheet. Current assets of £98m dwarf not only current liabilities of £7m, but also total liabilities of £29m. Tangible net asset value (TNAV) of £79m gives a price-to-TNAV of 1.4 at a current share price of 296p, which looks a reasonable valuation to me for a strong and expanding business. Banks’ balance sheets, of course, are notoriously opaque, and Barclays’ own valuation is further clouded by the rundown of its non-core assets. However, a price-to-TNAV of just 0.6 at a share price of 163p strikes me as providing a substantial margin of safety. As to earnings, Barclays trades on a current-year forecast price-to-earnings (P/E) ratio of 13.7. That may not scream ‘value’, but analysts expect earnings to advance strongly next year (despite Brexit headwinds) as non-core runs down, bringing the P/E down to just 9.1. H&T has a current-year forecast P/E of 16, falling to 15.7 next year. I see this as a reasonable rating on the basis of the strength of the business and the potential for the price of gold to remain elevated for some time, leading to earnings upgrades. In summary, although very different businesses, whose shares have also performed very differently this year, Barclays’ long-term recovery prospects and low valuation and H&T’s thriving business and reasonable valuation lead me to rate both stocks as buys at current levels. Brexit survival guide Of course, the Brexit vote has changed the potential outlook for all kinds of businesses in all kinds of ways. Which is why the experts at The Motley Fool have written a FREE guide called Brexit: Your 5-Step Investor's Survival Guide. This guide is essential reading on the risks and opportunities of Brexit for investors, and could make a real difference to your portfolio returns in the coming years. Simply click here for your copy - it's completely free and comes without any obligation.
16/6/2016
11:09
supermarky: The great British people will decide at the referendum. Does anyone have any comments about the barc share price in the short term?
24/3/2016
10:47
diku: That is the trick!....lower the Barc share price goes and they will be able to buy whole of Barc....Lehman assests thrown in...
15/3/2016
14:27
portside1: The market price on the date the Shares were provided was GBP1.6535 per Share and the place of trading was the London Stock Exchange. Director/ Shares Shares Balance PDMR provided deducted of Shares to Director/ to cover held by PDMR tax liabilities Director ----------------- -------------- ----------------- ----------- Jes Staley 1,090,169 512,380 3,390,786 ----------------- -------------- ----------------- ----------- Tushar Morzaria 643,494 302,444 1,272,360 ----------------- -------------- ----------------- ----------- Michael Harte 287,242 135,005 ----------------- -------------- ----------------- ----------- Bob Hoyt 483,562 227,277 ----------------- -------------- ----------------- ----------- Robert Le Blanc 779,790 366,505 ----------------- -------------- ----------------- ----------- Tristram Roberts 336,537 158,174 ----------------- -------------- ----------------- ----------- Mike Roemer 211,989 99,638 ----------------- -------------- ----------------- ----------- Amer Sajed 241,023 84,844 ----------------- -------------- ----------------- ----------- Ashok Vaswani 1,085,037 509,972 ----------------- -------------- ----------------- ----------- Notes: 1 The Share element of role based pay is payable quarterly and is subject to a holding period with restrictions lifting over five years (20% each year). 2 Tax liabilities on the Shares provided were met in cash and the number of Shares actually received by each individual was reduced by the value required to meet those liabilities. 3 The SVP was introduced in March 2010. SVP awards are granted to participants over Shares which may typically be released over a period of three years in equal annual tranches dependent on future service and the SVP rules. Discretionary dividend equivalent payments may also be made to participants on release of a SVP award. Since 2014, the Shares awarded to Directors and PDMRs have been subject to a six month holding period after release. SVP awards are also made to eligible employees for recruitment purposes under schedule 1 to the SVP (JSVP). 4 For further details on the Barclays LTIP, see previous disclosures in the Barclays Annual Report. -ENDS- For further information please contact: Investor Relations Media Relations Kathryn McLeland Tom Hoskin +44 (0)207 116 4943 +44 (0)20 7116 0699 This information is provided by RNS The company news service from the London Stock Exchange END RDSGGUACWUPQGPA (END) Dow Jones Newswires March 15, 2016 09:30 ET (13:30 GMT) 1 Year Barclays Chart 1 Year Barclays Chart 1 Month Barclays Chart 1 Month Barclays Chart Barclays Share News (BARC) Follow BARC Start Trading Share Name Share Symbol Market Type Share ISIN Share Description Barclays LSE:BARC London Ordinary Share GB0031348658 ORD 25P Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade +0.55p +0.34% 163.80p 163.75p 163.85p 164.40p 161.35p 162.20p 18,571,377 14:10:15 Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m) Banks 25,987.0 2,073.0 -1.9 - 27,519.81 Print Alert Barclays PLC Director/PDMR Shareholding 15/03/2016 1:30pm UK Regulatory (RNS & others) Barclays (LSE:BARC) Intraday Stock Chart Today : Tuesday 15 March 2016 Click Here for more Barclays Charts. TIDMBARC RNS Number : 1629S Barclays PLC 15 March 2016 15 March 2016 Barclays PLC (the "Company") Director/PDMR Shareholding: Disclosure and Transparency Rules 3.1.4R (1)(a) Pursuant to the Financial Conduct Authority's Disclosure and Transparency Rule 3.1.4R, the Company announces that the trustee of the Barclays Group (PSP) Employees' Benefit Trust notified the Company on 14 March 2016 that on 14 March 2016 it had delivered ordinary shares of Barclays PLC with a nominal value of 25p each (the "Shares") to the Directors and Persons Discharging Managerial Responsibilities ("PDMR") of the Company as set out in the table below. The Shares delivered are: i. in respect of the quarterly payment of the Share element of the role based pay component(1) of PDMRs' fixed remuneration for the three months to 31 March 2016; ii. in respect of Share Incentive (Holding Period) Awards made in 2016 (the remaining Shares, after tax liabilities(2) were discharged, are now held in a nominee account on behalf of the individuals); and iii. to satisfy the release of Shares the subject of awards made under the Barclays Share Value Plan(3) (the "SVP") and the Barclays Long Term Incentive Plan(4) (the "LTIP") over the last three years. The market price on the date the Shares were provided was GBP1.6535 per Share and the place of trading was the London Stock Exchange. Director/ Shares Shares Balance PDMR provided deducted of Shares to Director/ to cover held by PDMR tax liabilities Director ----------------- -------------- ----------------- ----------- Jes Staley 1,090,169 512,380 3,390,786 ----------------- -------------- ----------------- ----------- Tushar Morzaria 643,494 302,444 1,272,360 ----------------- -------------- ----------------- ----------- Michael Harte 287,242 135,005 ----------------- -------------- ----------------- ----------- Bob Hoyt 483,562 227,277 ----------------- -------------- ----------------- ----------- Robert Le Blanc 779,790 366,505 ----------------- -------------- ----------------- ----------- Tristram Roberts 336,537 158,174 ----------------- -------------- ----------------- ----------- Mike Roemer 211,989 99,638 ----------------- -------------- ----------------- ----------- Amer Sajed 241,023 84,844 ----------------- -------------- ----------------- ----------- Ashok Vaswani 1,085,037 509,972 ----------------- -------------- ----------------- ----------- Notes: 1 The Share element of role based pay is payable quarterly and is subject to a holding period with restrictions lifting over five years (20% each year). 2 Tax liabilities on the Shares provided were met in cash and the number of Shares actually received by each individual was reduced by the value required to meet those liabilities. 3 The SVP was introduced in March 2010. SVP awards are granted to participants over Shares which may typically be released over a period of three years in equal annual tranches dependent on future service and the SVP rules. Discretionary dividend equivalent payments may also be made to participants on release of a SVP award. Since 2014, the Shares awarded to Directors and PDMRs have been subject to a six month holding period after release. SVP awards are also made to eligible employees for recruitment purposes under schedule 1 to the SVP (JSVP). 4 For further details on the Barclays LTIP, see previous disclosures in the Barclays Annual Report. -ENDS- For further information please contact: Investor Relations Media Relations Kathryn McLeland Tom Hoskin +44 (0)207 116 4943 +44 (0)20 7116 0699 This information is provided by RNS The company news service from the London Stock Exchange END RDSGGUACWUPQGPA (END) Dow Jones Newswires March 15, 2016 09:30 ET (13:30 GMT) 1 Year Barclays Chart 1 Year Barclays Chart 1 Month Barclays Chart 1 Month Barclays Chart Barclays (LSE) Barclays Share News (BARC) Follow BARC Start Trading Share Name Share Symbol Market Type Share ISIN Share Description Barclays LSE:BARC London Ordinary Share GB0031348658 ORD 25P Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade +0.55p +0.34% 163.80p 163.75p 163.85p 164.40p 161.35p 162.20p 18,571,377 14:10:15 Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m) Banks 25,987.0 2,073.0 -1.9 - 27,519.81 Print Alert Barclays PLC Director/PDMR Shareholding 15/03/2016 1:30pm UK Regulatory (RNS & others) Barclays (LSE:BARC) Intraday Stock Chart Today : Tuesday 15 March 2016 Click Here for more Barclays Charts. TIDMBARC RNS Number : 1629S Barclays PLC 15 March 2016 15 March 2016 Barclays PLC (the "Company") Director/PDMR Shareholding: Disclosure and Transparency Rules 3.1.4R (1)(a) Pursuant to the Financial Conduct Authority's Disclosure and Transparency Rule 3.1.4R, the Company announces that the trustee of the Barclays Group (PSP) Employees' Benefit Trust notified the Company on 14 March 2016 that on 14 March 2016 it had delivered ordinary shares of Barclays PLC with a nominal value of 25p each (the "Shares") to the Directors and Persons Discharging Managerial Responsibilities ("PDMR") of the Company as set out in the table below. The Shares delivered are: i. in respect of the quarterly payment of the Share element of the role based pay component(1) of PDMRs' fixed remuneration for the three months to 31 March 2016; ii. in respect of Share Incentive (Holding Period) Awards made in 2016 (the remaining Shares, after tax liabilities(2) were discharged, are now held in a nominee account on behalf of the individuals); and iii. to satisfy the release of Shares the subject of awards made under the Barclays Share Value Plan(3) (the "SVP") and the Barclays Long Term Incentive Plan(4) (the "LTIP") over the last three years. The market price on the date the Shares were provided was GBP1.6535 per Share and the place of trading was the London Stock Exchange. Director/ Shares Shares Balance PDMR provided deducted of Shares to Director/ to cover held by PDMR tax liabilities Director ----------------- -------------- ----------------- ----------- Jes Staley 1,090,169 512,380 3,390,786 ----------------- -------------- ----------------- ----------- Tushar Morzaria 643,494 302,444 1,272,360 ----------------- -------------- ----------------- ----------- Michael Harte 287,242 135,005 ----------------- -------------- ----------------- ----------- Bob Hoyt 483,562 227,277 ----------------- -------------- ----------------- ----------- Robert Le Blanc 779,790 366,505 ----------------- -------------- ----------------- ----------- Tristram Roberts 336,537 158,174 ----------------- -------------- ----------------- ----------- Mike Roemer 211,989 99,638 ----------------- -------------- ----------------- ----------- Amer Sajed 241,023 84,844 ----------------- -------------- ----------------- ----------- Ashok Vaswani 1,085,037 509,972 ----------------- -------------- ----------------- ----------- Notes: 1 The Share element of role based pay is payable quarterly and is subject to a holding period with restrictions lifting over five years (20% each year). 2 Tax liabilities on the Shares provided were met in cash and the number of Shares actually received by each individual was reduced by the value required to meet those liabilities. 3 The SVP was introduced in March 2010. SVP awards are granted to participants over Shares which may typically be released over a period of three years in equal annual tranches dependent on future service and the SVP rules. Discretionary dividend equivalent payments may also be made to participants on release of a SVP award. Since 2014, the Shares awarded to Directors and PDMRs have been subject to a six month holding period after release. SVP awards are also made to eligible employees for recruitment purposes under schedule 1 to the SVP (JSVP). 4 For further details on the Barclays LTIP, see previous disclosures in the Barclays Annual Report. -ENDS- For further information please contact: Investor Relations Media Relations Kathryn McLeland Tom Hoskin +44 (0)207 116 4943 +44 (0)20 7116 0699 This information is provided by RNS The company news service from the London Stock Exchange END RDSGGUACWUPQGPA (END) Dow Jones Newswires March 15, 2016 09:30 ET (13:30 GMT) 1 Year Barclays Chart 1 Year Barclays Chart 1 Month Barclays Chart 1 Month Barclays Chart
01/3/2016
15:40
smurfy2001: Selling Barclays Africa is CRAZY. WTF is the CEO doing?! Barclays’ decision to cut off its Africa operations – one of the few parts of its core business that generates a return above its cost of equity – is a sign of how far the continent has fallen in investors’ estimations and the cost of financial regulation. Perhaps it’s a statement of intent, signalling Barclays’ commitment to a leaner and simpler business model, while underscoring its poor pre-crisis move to buy South African lender Absa. Until last year, the group pointed to its Africa operations as one of its most attractive areas of growth. However, on Tuesday, Barclays said it would slim down its 62.3% Africa stake in the next two to three years, after reporting a drop in full-year profits and a dividend cut that triggered an 11% fall in its share price. Analysts at Citi are not impressed. "Africa attributable profit grew 4% on a constant currency basis in 2015 and the RoTE of 11.7% is higher than the core bank average and double the investment bank," they state. "Meanwhile, the majority of any capital benefit from selling the 62% stake is only likely to materialize when the holding drops below 20%, which could take two to three years. We question the rationale behind the disposal." What's more, Barclays says selling the African stake would boost its capital ratio by just one percentage point. The divestment, therefore, raises questions. If Barclays thinks antagonizing shareholders by selling off one of the few parts of its core business that generates a return on equity above its cost of equity is worth the risk, is that because it has particularly depressing read on Africa’s profitability prospects going forward? Barclays’ decision comes at a tough time for Africa. The downturn in the commodities cycle has highlighted many African countries’ lack of economic diversification, and in some cases – notably Nigeria – their governance challenges. The sale at first glance looks like the man at the top of the global financial community, Barclays’ CEO Jes Staley, is turning cold on Africa’s fundamental opportunities as well as its short-term difficulties. Meanwhile, it is hard to see how a Gulf or Chinese banking group – or a vehicle cobbled together by former Barclays CEO Bob Diamond – would bring better technical competence to African banking. Barclays’ African operations – from Ghana, to Kenya, to Zambia and beyond – are a unique franchise dating back more than 100 years. Of late, the business as a whole has also outperformed the only other big international banking group to have a widespread universal banking franchise on the continent, Standard Chartered. Perhaps the Barclays exit – rather than on comment on global banking regulation – indicts the prospects of the South Africa unit specifically. South Africa was always a poor and unrepresentative cheerleader for the rest of the continent’s much-feted resurgence, even during the commodities boom. Barclays’ South African business, however – a relatively new addition to the group – is the bank’s biggest national market on the continent. Aside from the regulatory costs of retaining the 62.3% stake in Barclays Africa, Staley highlights how Barclays Africa’s local currency ROE of 17% in 2015 has fallen to 8.7% at the group level, in sterling. South African policymakers – and arguably its president’s misjudged handling of finance ministry appointments – can take much of the blame for that. Absa Now Barclays could be selling out of a 100-year-old franchise largely because of a purchase it made little more than 10 ago – Absa. Barclays’ £2.9 billion acquisition of South Africa’s third biggest lender in 2005 might always have been a bad bet. Aside from South Africa’s poor growth prospects – developed country-style growth with frontier-market political risks – it might also have been the wrong bank. The old Barclays franchise in South Africa – before it exited during the late apartheid era – was FNB, now a thriving part of FirstRand. Hardly surprising, then, if the purchase of Absa was beset from the outset with cultural clashes. Barclays was buying one of its old rivals, while its old franchise remained a competitor. Absa and the rest of Barclays’ African businesses only got round to merging in 2013, despite it being part of the plan behind the acquisition. It was ironic, then, when two years ago Diamond’s newly launched African banking investment vehicle Atlas Mara bought a big chunk of another former Barclays franchise – Union Bank in Nigeria – now the continent’s biggest economy. How much more ironic if the rest of Barclays Africa – perhaps minus the old Absa franchise – were to end up back in Diamond’s hands via Atlas Mara. Whether or not a Diamond solution would be the best outcome for African banking is up for debate, but it is certainly not the only permutation imaginable. South Africa’s Public Investment Corporation (PIC), for one, would be keen to up its stake in Barclays Africa, according to management comments reported by local media last month. Interestingly, PIC – alongside Nedbank (the number-four South African lender) and Qatar National Bank – also holds a big stake in a home-grown pan-African group Ecobank, which unlike Barclays is less strong in east and southern Africa. Barclays’ Africa exit is just another post-crisis example of bulge-bracket banks’ downsizing their global footprint, but the move seems counter-intuitive given its profitability. Perhaps it serves as a positive signal to investors that the bank is becoming a more-simple, nimble franchise with a targeted transatlantic business strategy, and is, therefore, less prone, in theory, to event-driven and regulatory risk. Full article: hTTp://www.euromoney.com/Article/3533791/Category/0/ChannelPage/0/Staley-cements-Barclays-new-order-with-Africa-exit.html
20/11/2015
08:45
diku: Any small movement up in Barc share price is proving to be false sense of security...chartist sure kept it below 230p....those HFT really have this well controlled...
Barclays share price data is direct from the London Stock Exchange
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