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25/10/2020
13:43 | bernie37: Goldman Sachs, which employs 6,000 in the UK, has set aside $10.8billion (£8.3billion) to cover pay and bonuses in the first nine months of 2020 – up 16 per cent on the same period last year.
Rival Morgan Stanley, which has 5,000 staff in Britain, has set aside $6.8billion to cover pay, up 26 per cent. JP Morgan, with 19,000 UK employees, has put aside an extra 10 per cent to take its total to $9.7billion.
Swiss bank UBS, which has around 5,000 workers in the UK, is handing $30million to 25,000 staff globally as a 'thank you' payment. Each bonus is worth about a week's salary.
Investment banks are flush with cash after pocketing huge fees from helping struggling firms to raise emergency funds.
They have also boosted their income from trading shares and bonds, taking advantage of turmoil on the markets.
Evidence of money being set aside for banker bonuses raises the prospect of lavish rewards being dished out in the City as Covid cripples economies and leads to millions of job losses.
Any move to bump up bonuses could anger UK bank shareholders who have been denied bank dividends since March. Regulators cracked down on payouts to make sure banks could survive a deep economic downturn in which they might face heavy losses on bad debts.
Lord Myners, the ex-City Minister who masterminded bank bailouts during the 2008 crash, said: 'To pay significant bonuses in the knowledge you've got [loan] losses coming would be foolhardy in the extreme.
'In the circumstances of shareholders not getting dividends, it would look even less acceptable for banks to be paying significant bonuses.'
Figures this week are set to show Britain's biggest banks have built up around £13.6billion in extra capital as a buffer against an economic crash, according to analyst estimates.
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Banks have so far poised aside around £20billion to deal with bad loans. Regulators are set to decide in the coming months on whether to let banks resume paying dividends.
Myners added: 'There's a misunderstanding in Government about dividends in some way going to fat-cat individuals.
'The dividends not being paid go to pension funds and insurance schemes. There's no need to stop the banks paying dividends. They have strong capital ratios.'
Barclays, like most banks, will finalise its bonus pot at the end of the year. Its investment bank's income from trading shares and bonds has jumped 52 per cent to a record £6.25billion for the first nine months of 2020. The bank also made almost £2billion in fees from helping hard-up firms to call on investors for funds. The corporate and investment bank made profits of £3.2billion.
Jes Staley, chief executive of Barclays, may want to reward his investment bankers to keep them onside as he defends the division from an attack by activist investor Edward Bramson.
The secretive Bramson has called on Barclays to cut the size of its investment bank, while Staley believes it provides an important source of income. But Luke Hildyard, director of the High Pay Centre, warned: 'The pandemic is having a devastating impact. Vast gaps between those at the top and everybody else are not healthy. Huge payouts to already very wealthy bankers would make many people uncomfortable. It might also be complacent to increase bankers' bonuses.'
It is thought bank bosses will show caution around paying dividends until they know the full scale of the downturn.
Staley said: 'The decision around bonuses will be made at the end of the year. We want to do the right things for our customers and our clients.'
HSBC, Lloyds and Barclays are expected to make profits of £3.8billion, £631million and £1.5billion respectively in 2020, while state-backed NatWest is tipped to make a loss of £743million.
Ian Gordon, banking analyst at Investec, said: 'It sounds far fetched, but most of the banks will stay profitable throughout this crisis outside of NatWest.
'I don't think NatWest is likely to pay out a dividend, but all of the others are in a position to pay out.'
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27/9/2020
18:08 | richie1218: Banks ready to bring back dividends: NatWest and Lloyds give hope to investors as jobs crisis threatens bleak winter for Britain's economy
Bosses at NatWest and Lloyds have heralded their rock-solid balance sheets
The prospect of banks resuming dividend payouts comes just as the economy is expected to take a turn for the worse
Two of Britain's biggest banks have signalled they are ready to start paying dividends again – just as the economy faces huge damage from lockdown measures and soaring job losses.
Bosses at NatWest and Lloyds have heralded their rock-solid balance sheets as regulators at the Bank of England prepare to review the ban on payouts to shareholders.
In an interview with The Mail on Sunday, NatWest chairman Sir Howard Davies said the bank was in a strong position and could resume dividends if regulators decided to lift the ban.
'I'm not aware of anyone [among the big banks] who is in deep trouble,' he added. 'The banks would be in a position where they could distribute [dividends] at some level.'
However, he stressed that the payouts would be proportionate, adding that 'nobody is going around the banking industry saying they want to pay a massive special dividend'.
Antonio Horta-Osorio, chief executive of Lloyds, said the board would not decide on dividends until the end of the year.
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27/9/2020
13:52 | manics: dalep716: I do not see an investable business at Barclays because of:
-ongoing governance issues
-court proven criminality
-weak management
-the regulatory outlook
-activist investors looking to reduce the IB (who may be successful)
-endless provisions for endless reasons (most recently Covid bad debt)
-long term legacy of failure (spanning decades)
-repeated demonstrable questionable culture -top down
-heavily tainted brand
-an almost total disregard for its shareholder base (from private to institutional to activist)
...but that doesn't mean there isn't trade opportunities for investors with BARC. Trade it, don't invest in it imo.
Barclays imo is a 'the way we were' brand from yesteryear. It just doesn't have the same place in the context of today, which is why it has already haemorrhaged the majority of its market cap, and why imo, it will never again reach anything close to the 'cap it used to once boast.
The bank has changed. The market has changed. The customers have changed. The opportunities have gone and times have changed forever.
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26/9/2020
07:56 | forcemode: Manics - I don't understand your rationale that Barcs IB arm alone should support a 90p share price Surely if the Retail side of things is haemorrhaging money hand over fist then this can only affect Barclays as a whole?
Meanwhile I see that other UK banks made smallish gains yesterday whilst BARC lost ground again!
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08/9/2020
14:54 | manics: Did you know on LinkedIn there are 64,353 employees on the platform? Over sixty four thousand individuals so tone deaf, that they will knowingly publicly state they work for a court proven criminal enterprise (imo) as part of their digital footprint.
In the Barclays bio there is no mention of court cases and judgements. They say:
"With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 83,500 people".
-so that is 20k people who are drawing a pay check and rightly imo too ashamed to admit it on LinkedIn.
Just a terrible state of play as we head back to double digit BARC imo, contrasting to Jes' 300p forecast on appointment.
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07/9/2020
12:15 | diku: Guys look at market cap for Barc and Lloy...Barc used to be nearly 10bln lower than Lloy for few years...it is the narrowest now and about to overtake LLoy...either Barc is due for a fall or Lloy is due for a rise...jockeying for positioning going on...before the financial crisis of 2008 - 2009 Barc was always higher than Lloy...
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29/7/2020
12:37 | optomistic: Divi? from the report:
Dividends and capital returns
-- In response to a request from the PRA, and to preserve additional
capital for use in serving Barclays customers and clients through
the extraordinary challenges presented by the COVID-19 pandemic,
the Board agreed to cancel the 6.0p per ordinary share full year
2019 dividend. The Board also decided that for 2020 Barclays would
suspend its current capital returns policy and accordingly will
not undertake any interim ordinary share dividend payments, regulatory
accruals of ordinary share dividends, or share buybacks. The Board
will decide on future dividends and its capital returns policy
at year-end 2020
I reckon that answers Double Down's Q
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26/6/2020
09:27 | bernie37: Staley warned of a “challenging” year, which is an understatement. But he hailed the bank’s “diversification by business, geography and currency, which allows us to remain resilient through the developing economic downturn.”
Barclays’ common equity tier 1 capital ratio shrank from 13.8% to 13.1%, but is still above the bank’s 11.5% minimum regulatory hurdle.
The Barclays share price looks a bargain by conventional valuation methods, with a price-to-book valuation of just 0.3. However, these aren’t conventional times. The banks are also under political pressure to be lenient on bad debts.
Long-term buy-and-hold
The road to recovery will be long and the dividend has gone, at least until the end of the year, when management will review its position.
I think every portfolio has a place for Barclays, so why not buy it when the share price is down. The bank is also benefiting from the crisis, with increased trading income, and a surge in corporate lending to locked-down companies keen to boost liquidity.
The next leg of the Barclays share price recovery may take time, but I still think it’s a tempting long-term buy-and-hold today.
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26/6/2020
06:55 | johnwise: RNS Number : 2044R
26 June 2020
Barclays PLC Barclays US LLC 2020 CCAR results
https://uk.advfn.com/stock-market/london/barclays-BARC/share-news/Barclays-PLC-Barclays-US-LLC-2020-CCAR-results/82733980
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06/6/2020
16:54 | bernie37: Since Barclays (BARC) published its full-year numbers just over a month ago, the bank’s shares have more than halved, outpacing even the sharp contraction in the FTSE 100. During that time, there have been several notable transactions involving senior figures at the lender.
BARC:LSE
Barclays PLC
1mth
Today change
6.38% Price (GBP)
131.40
The largest single transaction took place on 9 March, when Barclays Bank president Paul Compton sold 397,929 shares in two tranches, for a nominal value of £484,000. Earlier in the day, Mr Compton had been awarded almost half a million shares, net of stock sold to cover income tax and social security costs.
This included 71,236 shares as part of his variable performance-related pay for 2019, 97,949 shares in fixed pay for the first quarter of 2020, and 292,293 shares awarded in previous years’ share schemes. Mr Compton was also granted 1,940,602 in deferred stock, which will be awarded pending continued employment and based on performance over the next three years.
Two days later, chairman Nigel Higgins acquired 250,000 shares at £1.18 a pop. This followed his open-market purchases of the same number of shares a week earlier, when Barclays stock was trading 20p higher.
On 12 March, with the stock at £1.06, a person closely associated with non-executive director Mike Ashley purchased 47,128 shares, again on the open market. Four days later, with the stock cratering to 86.1p, a person closely associated with fellow non-executive Tim Breedon coughed up for 55,000 shares.
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