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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Barclays Plc | BARC | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.40 | 0.15% | 259.35 | 08:33:26 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 260.05 | 259.35 | 260.95 | 258.95 |
| Industry Sector |
|---|
| BANKS |
| Announcement Date | Type | Currency | Dividend Amount | Ex Date | Record Date | Payment Date |
|---|---|---|---|---|---|---|
| 01/08/2024 | Interim | GBP | 0.029 | 15/08/2024 | 16/08/2024 | 20/09/2024 |
| 20/02/2024 | Final | GBP | 0.053 | 29/02/2024 | 01/03/2024 | 03/04/2024 |
| 27/07/2023 | Interim | GBP | 0.027 | 10/08/2023 | 11/08/2023 | 15/09/2023 |
| 15/02/2023 | Final | GBP | 0.05 | 23/02/2023 | 24/02/2023 | 31/03/2023 |
| 28/07/2022 | Interim | GBP | 0.0225 | 11/08/2022 | 12/08/2022 | 16/09/2022 |
| 23/02/2022 | Final | GBP | 0.04 | 03/03/2022 | 04/03/2022 | 05/04/2022 |
| 30/04/2021 | Interim | GBP | 0.02 | 12/08/2021 | 13/08/2021 | 17/09/2021 |
| 18/02/2021 | Final | GBP | 0.01 | 25/02/2021 | 26/02/2021 | 01/04/2021 |
| Top Posts |
|---|
Posted at 25/10/2024 06:03 by xtrmntr Hargreaves highlights Barclays' discount Barclays (BARC) is still trading at a discount despite a material re-rating this year and third-quarter results that pushed the shares to a nine-year high, says Hargreaves Lansdown.The Citywire Elite Companies AAA-rated banking giant reported profits of £2.2bn in the three months to the end of September versus expectations of £2bn, with lower impairments and in-line income boosting the shares 4.2% to 248p on Thursday, taking year-to-date gains to 60%.Analyst Matt Britzman said although there was 'slight disappointment' in investment banking, 'this should be taken as a decent set of results'.'Barclays has had a material re-rating over the year so far,' he said. 'Much of that's been justified, and the stock still looks to be trading at a discount to where it should be. However, the lack of visibility over the large investment banking division and how it meets medium-term growth targets is an anchor keeping things down.'The bank 'shifted some interest rate assumptions' which means a slightly better outlook for UK net interest income.'UK performance was also very much in line with what we saw from Lloyds [this week],' said Britzman. 'Default levels are low, mortgage activity is picking up, and deposit migration headwinds are easing.' |
Posted at 15/8/2024 11:24 by stonedyou BARC Barclays FTSE 100 221.6p 2.9p 1.31%BARC Dividend Announcement ex divi 15-Aug payment date 20-Sep |
Posted at 13/8/2024 07:15 by blueclyde When is Barclays PLC ex-dividend date? Barclays's upcoming ex-dividend date is on Aug 15, 2024. Barclays shareholders who own GB:BARC stock before this date will receive Barclays's next dividend payment of 2.9p per share on Sep 20, 2024Do you not understand the stock market? |
Posted at 13/8/2024 06:35 by xtrmntr It was very much a case of sticking to the script and not annoying investors, and Barclays (BARC) succeeded in both those limited goals in its interims results, with the added bonus that the long-moribund investment banking arm is finally started to generate meaningful income again. The market was pleased enough to indulge in profit-taking after a strong run in the share price, and Barclays also announced a £750mn share buyback. The performance was solid enough to reaffirm, or increase, several of the bank's key targets this year. Net interest income increased by £0.3bn to £11bn, and Barclays delivered a return of tangible equity (RoTE) of 11.1 per cent in the period. This means it is on track to hit its target of more than 10 per cent this year, and it is aiming for 12 per cent by 2026.The investment banking business delivered made some encouraging progress as market activity picked. In the three months to June, net trading income rose by 10 per cent year-on-year from £1.35bn to £1.49bn Meanwhile, banking fees and underwriting income rose by a fifth between January and June to £1.30bn, and a large UK rights issue meant equity capital markets fees shot up by 59 per cent. Barclays was able to match the rising returns at its main Wall Street investment bank rivals.The UK banking business also put in a commendable performance despite a small decline in the net interest margin to 3.15 per cent as interest rate expectations started to fall in anticipation of the Bank of England's 0.25 per cent rate cut. This, combined with relatively subdued demand for loans in both retail and commercial, meant that pre-tax profits here were largely flat at £1.54bn.Analysts at Peel Hunt said: "Even after a 52 per cent rise in the share price, Barclays is trading at 0.7 times spot tangible net assets (TNAV) versus Lloyds and NatWest, which are both trading at 1.2 times price to TNAV. We think this differential is too wide, given Barclays' 2026 ROTE target of 12 per cent versus mid-teens for its peers."We tend to agree with this view. Barclays looks intent on diversifying its operations away from the investment bank which, despite that division's excellent performance, sucks up large quantities of its total risk-weighted capital. The results are a promising work in progress, but the bank as we see it now is not yet the finished article. However, the valuation case is still compelling with a forward PE of barely 7 times consensus forecasts. Buy. |
Posted at 31/7/2024 20:15 by bernie37 Earnings season is upon us, and that’s got me thinking about the potential value of FTSE 100 stocks in other sectors.I have one big-name bank that I’m zeroing in on today. That’s because the Barclays (LSE:BARC) is up more than 50% since the start of 2024. It’s got me thinking — could the British bank actually be a good value buy? Sleeping giant in the Footsie? Don’t get me wrong, Barclays is a well-known stock in the Financials sector. The British bank has a £34bn market cap, and has continued to track higher in 2024. I am intrigued by banking given where we are in the business cycle right now. Interest rates are high, the economy looks to be on a knife edge, but there is also some optimism with the general election out of the way. The recent share-price growth has reflected both strong conditions for banks generally as well as Barclays’ competitive position. One thing I really like the look of is its return on tangible equity (RoTE). The bank reported 12.3% RoTE for the quarter ended 31 March 2024, which is ahead of both its 2024 and 2026 targets. A cost to income ratio of 60% also showed me signs of management discipline, which I like to see given the potential risks in the economy right now. What does the relative value look like? What I am interested in is how it stacks up against both the FTSE 100 index and other big-name banks like NatWest and HSBC. Barclays has a 3.4% dividend yield right now, which is slightly below the Footsie average. However, when compared to 4.8% for NatWest and HSBC’s 7%, it doesn’t seem as strong a pick for dividend investors. The NatWest share price has also been strong, with over 50% gains in 2024. HSBC has been more meagre, in the single digits. One key valuation metrics for bank shares is the price-to-book (P/B) ratio. This measures the company’s share price against the value of its net assets on the balance sheet. NatWest trades at a P/B of 0.74 while HSBC is at 0.65. What about Barclays? A meagre 0.46. That means investors are paying 0.46p per £1 of net assets on the books. This says to me that either there is a reason why investors are avoiding Barclays, or it could be a bargain hiding in plain sight. What are the downsides? There is the broader risk to banks that could come from interest rate cuts. We could see more spending and less saving, reducing funds available for banks to lend out and earn money on. However, Barclays specifically also has some risks to it. For one thing, the company has been plagued by issues in recent years. A rightsizing of investment banking activities is part of its three-year plan, and the bank continues to work on turning around its fortunes. Where to next? Barclays is set to announce its half-year results tomorrow. I’ll be tuning in to see how well its investment banking division has performed, and also to track its net interest margin movements. If the results are strong and the outlook is positive, Barclays could go on my ‘want-to-buy list’ for when I get some free cash, despite some question marks on future growth. |
Posted at 15/5/2024 12:04 by bernie37 Barclays (LSE: BARC) shares are having a great run at the moment. Year to date, they’re up about 40%.Looking ahead, there could be more share price gains to come. According to analysts at Deutsche Bank, the shares have the potential to deliver double-digit gains from here. 270p share price target Recently, Deutsche Bank initiated coverage of Barclays shares. Listing the bank stock as a Buy, its analysts slapped a 270p price target on it. That price target is roughly 24% higher than the current share price. If it turns out to be accurate, a £5,000 investment today could be worth £6,200 in the not-too-distant future. I’ll point out that Barclays shares also pay a decent dividend. Currently, the yield is about 4%. Add this yield to the potential share price gains, and investors could be looking at a total return of nearly 30%. Of course, neither the dividends nor share price gains are guaranteed. I’ve learnt over the years that brokers’ price targets can be off the mark at times. Low valuation Barclays shares do look cheap right now though. Currently, they trade on a forward-looking price-to-earnings (P/E) ratio of just 6.9 – miles below the market average. At current levels, the analysts at Deutsche Bank believe there’s considerable “risk asymmetry” in the company’s share price (that means they think the shares are more likely to go up than down). Back in February, Barclays announced a new strategy in an effort to improve its business performance. And Deutsche’s analysts reckon that if the bank can get close to its targets, the share price should rise. Meanwhile, they believe that the group’s tangible net asset value (which is expected to increase to 460p by end of 2026) should offer some protection from share price weakness. |
Posted at 14/5/2024 18:38 by bernie37 Barclays in FocusBased in London, Barclays (BCS) is in the Finance sector, and so far this year, shares have seen a price change of 37.56%. The financial holding company is paying out a dividend of $0.26 per share at the moment, with a dividend yield of 4.82% compared to the Banks - Foreign industry's yield of 4.37% and the S&P 500's yield of 1.57%. In terms of dividend growth, the company's current annualized dividend of $0.52 is up 40.2% from last year. Barclays has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 12.05%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Barclays's current payout ratio is 39%. This means it paid out 39% of its trailing 12-month EPS as dividend. Earnings growth looks solid for BCS for this fiscal year. The Zacks Consensus Estimate for 2024 is $1.60 per share, which represents a year-over-year growth rate of 15.94%. Bottom Line Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout. For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BCS is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). |
Posted at 05/4/2024 18:06 by bernie37 Costs: There is very little that banks can safely control in their trading but operating costs is one of the few. While Covid has pushed up the ratio of costs to revenue in the near term, they are forecast to fall to their lowest levels in a decade following a concerted drive to manage expenses. Although revenues are only forecast to grow at a compound annual growth rate (CAGR) of 2 per cent, this drop in the cost ratio should help drive net margins up more quickly.Other than cost controls, it is hard to see that Barclays is itself driving the positives and its growth and improving returns have a lot more to do with good fortune than good strategy. Stock markets tend to reward good strategy much more highly than good luck, suggesting that the share price may not automatically follow the improving EPS. How are banks valued? Barclays' EPS are rising sharply, but is that what drives the valuation? Not really, as banks are not valued on trading multiples. Rather, the valuation depends on the net asset value (NAV) and the return achieved on those assets relative to the bank’s weighted average cost of capital (WACC). WACC is the average after-tax cost of a company’s different capital sources: ordinary shares, preference shares, bonds and long-term debt. Using economic value added (EVA) calculations, the broad principle is that if a business makes a return above its WACC, the share price should be above its NAV: this is called creating shareholder value. If returns are below the WACC, the fair value for the shares is below NAV: this is called destroying shareholder value. For Barclays, the market sees the WACC being around 10 per cent, yet its return on assets since 2008 has averaged only 1.7 per cent, with many years having shown a negative return. This means that the current valuation, with the shares trading at 40 per cent below NAV, looks to be fully supported by the group’s trading history. The shares have traded below NAV for almost all of the past 10 years. However, one of the core adages in investment is not to lean too heavily on the past when trying to predict the future. Barclays’ valuation might be right if you look back, but is that still the case looking forwards? So, is Barclays cheap or not? While Barclays does look to be on an improving trend, 2021 is likely to prove a spike, with profits dropping back in 2022, so is this all just a flash in the pan? While profits are forecast to stay below those of 2021 until at least 2024, they are importantly forecast to stay well above the average levels for the preceding 10 years. But, as above, the key factor to look at here is not profitability but the return on assets (ROA). Against the average ROA for the past 10 years of 1.7 per cent, the outlook for this measure is to average nearer 9 per cent between 2019 and 2024 (taking an average of the 2020 slump of 3 per cent and 2021 spike of 12 per cent into account). While this is far from an impressive ROA and is still below the WACC, it is a significant shift away from the past history of destroying a lot of shareholder value and fully justifying a large price-to-book discount. If Barclays can reliably make a return that is close to its cost of capital, the basis for the large discount begins to evaporate and there is a case for the share price to move closer to the NAV as value stops being destroyed. In addition, the NAV itself is forecast to reverse a decade-long period of decline, providing a double driver for the share price – a smaller discount to a larger value. If the discount could be reduced from the current 40 per cent to, say, 25 per cent (which would not be unreasonable on an EVA basis) the shares could be worth 275p against the current 185p, pricing off the forecast 2022 NAV of 365p. Not exciting but a strong technical story This is not an especially exciting story and any bull case on the stock is largely a technical one, but one that is nonetheless well-founded. The board is clearly convinced that there is scope to sustain a much higher ROA even if still below the WACC, and the analyst community appears similarly on-side. The problem is that many fund managers remain cautious and are somewhat jaded after watching poor performance for much of the past decade. Several more quarters of improved performance are likely to be needed to change hearts and minds. So, any rerating of the stock does not appear imminent. It does feel as though it will come in time, but any private investor looking at buying Barclays does need to proceed with their eyes wide open. Banks are still inherently risky, geared cyclical businesses and Barclays has had the additional burden of losing three chief executives following a string of scandals. The dividend is forecast to rise from last year's 1p to 6p this year. A payout of more than 5 per cent then on to more than 9p by 2023 looks to be on offer at this point, which should be something of a cushion for the risk. There are still a lot of questions over the pace, extent and sustainability of recovery here and relying on a largely technical argument for buying a share is not the most compelling. While it does feel as though there are many stronger buy cases in the market today, there is certainly some allure in a potential c50 per cent capital gain and a 5 per cent yield, but Barclays is still only one for the less risk-averse. |
Posted at 05/4/2024 18:02 by bernie37 Barclays Bank – a cheap stock, technicallyIs Barclays finally on the cusp of a long-awaited rerating? Former City analyst Robin Hardy runs the numbers Investors in Barclays have been waiting a long time for its share price to outperform, but is an about-turn in the offing? Barclays (BARC) has been out of favour for a long time, since the financial crisis in 2008 in fact. The share price has gone nowhere in the past 10 years, underperforming the FTSE All-Share by 25 per cent. Investors' total return has been just 3 per cent a year – the FTSE 100 has delivered 6.3 per cent and global equities 13.5 per cent in that time. But on most valuation measures, the shares look cheap and in FY2021 Barclays is expected to report a near-fourfold increase in earnings per share (EPS). Could it be on the cusp of a rerating, or are there still too many warning signs telling private investors to steer clear? Profits are rising: good management or good fortune? This is the billion-dollar question and sits at the heart of whether or not Barclays’ discounted share price makes the shares a bargain or correctly valued. If good fortune is the catalyst, then improvements may not be sustainable and returns may be of too low quality to justify a change in valuation. Barclays is forecast to report EPS of 34p this year (to December 2021), a level to which it has not come remotely close since 2008. But what is driving this sudden and substantial surge in profit forecasts? Investment banking storm: There has been a surge in private equity buyouts, merger & acquisition (M&A) activity and initial public offerings leading to a strong increase in fees at Barclays' investment banking operations. However, the current rate of equity market activity is not sustainable and this typically feast-and-famine market is likely to slow. Lower activity also usually leads to lower fee rates, compounding any slowdown in market momentum. Barclays is currently making positive returns in this historically poorly regarded segment (it is volatile and requires a lot of capital) but how long can that last? Market share gains: Further to the broader surge in equity market activity, Barclays has benefited from other European banks pulling out of the game, leading to much higher market share. The likes of Credit Suisse and Deutsche Bank have substantially scaled back investment banking on the continent, which is likely to be playing a large part in the board’s confidence that Barclays can avoid a major collapse in investment banking fees – there is no else left in Europe with whom the US banks can look to partner. While there are market share positives in investment banking, there are potential threats in personal banking. Challenger banks such as Metro, Starling, Virgin Money and Monzo have already nibbled some market share, but there is a much bigger threat from US banks coming to the UK. Marcus from Goldman Sachs and Chase from JPMorgan could prove materially more disruptive to what has been a stable core for Barclays. Impairments: Changes in banks’ provisions against bad loans are always a significant part of the movement in annual profits. It was initially feared that Covid would lead to many loans going bad and that rising provisions would hit profits. However, enforced forbearance and generous handouts (avoiding the term ‘bailout’ Covid-19: Ironically, this has been more of a positive for the banks. Lower impairments as above, unexpected value created by weak share prices driving M&A and a large influx of deposits as household outgoings fell have all been beneficial. Rising interest rates: Bond yields have been rising and central banks are set to raise prime interest rates to combat the global surge in inflation. Barclays predicts that every 10 basis point increase in interest rates can add £150m to earnings before interest and tax (Ebit) by 2023 due to expansion of its net interest margin – economists currently believe interest rates will have increased by 40 basis points by the end of 2022. This could bump Ebit up by 7-8 per cent. Rising rates are a double-edged sword, however, as credit risk will increase. |
Posted at 26/2/2024 15:20 by bernie37 Barclays PLC (LON:BARC) will increase its dividend on the 3rd of April to £0.053, which is 6.0% higher than last year's payment from the same period of £0.05. Although the dividend is now higher, the yield is only 4.9%, which is below the industry average.See our latest analysis for Barclays Barclays' Earnings Will Easily Cover The Distributions The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Having distributed dividends for at least 10 years, Barclays has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Barclays' payout ratio of 29% is a good sign as this means that earnings decently cover dividends. Over the next 3 years, EPS is forecast to expand by 47.1%. The future payout ratio could be 29% over that time period, according to analyst estimates, which is a good look for the future of the dividend. Dividend Volatility While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was £0.065 in 2014, and the most recent fiscal year payment was £0.08. This works out to be a compound annual growth rate (CAGR) of approximately 2.1% a year over that time. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past. The Dividend Looks Likely To Grow With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Barclays has impressed us by growing EPS at 25% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock. Barclays Looks Like A Great Dividend Stock Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity. |
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