Barclays Share Discussion Threads

[bothdavis] 18/2/2017 11:44

Patience is the investors friend - look for a five to ten year time frame - reinvest divis - the power of compounding

[diku] 17/2/2017 18:55

Unilever gets a bid....don't rule out Barc getting a bid from a US bank....Goldman paper is very rich currently...

[tenapen] 17/2/2017 18:27

Courtney Goldsmith
I am a journalist for City A.M. reporting on the Industrials sector


Feeling disappointed by your service at Barclays? Well, research shows you're not alone.

Barclays has been voted the worst British bank yet again, falling to the bottom of MoneySavingExpert's twice yearly poll.

Cont...

[bernie37] 17/2/2017 16:09

That’s the view on banks by Schroder Income fund’s co-manager, Kevin Murphy. But how accurate an assertion is that, given the much maligned recent history of the sector?

Murphy was speaking after adding Standard Chartered to his portfolio, which already includes Barclays, HSBC, Royal Bank of Scotland (RBS) and Lloyds Banking Group. It would also appear that TD Direct Investing customers are seeking more exposure to banks; our latest data shows an increase in trades in banking stocks of 29% during 2016.
So, ahead of next week’s earnings calendar, which will be dominated by the largest UK retail banks Lloyds, Barclays, RBS and HSBC, we wanted to assess whether the banking sector is returning to former glories.
Bringing back dividends
Before the financial crisis of 2008 UK banks were among the best places to invest for solid dividend growth. 10 years ago, banks provided almost a quarter of all dividends in the UK market. Following the financial crisis, banks went through the wringer; not only did their share prices plummet, but many were forced to suspend dividend payments too, most notably Lloyds and RBS.
Since then UK banks have been rebuilding their balance sheets and are now returning to form. The health of these businesses is reflected in their dividends, with HSBC, Lloyds and Barclays now paying a good level of dividend yield. In 2015, Lloyds announced its first dividend since the government stepped in to bail it out in 2008. Standard Chartered, meanwhile, is likely to be among those companies which recommence dividend distributions this year.
Bank/Index Dividend Yield % 1 Year Share Price Return,% 2 Year Share Price Return,% 3 Year Share Price Return,% 4 Year Share Price Return,% 5 Year Share Price Return,%
Major banks
HSBC Holdings 5.3 48.4 48.4 29.5 20.0 70.6
Lloyds Banking Group 3.5 3.6 -6.2 -17.0% 33.9 125.8
Barclays 0.8 21.4 -1.0 -12.6 -12.3 28.0
Royal Bank of Scotland -12.2 -38.8 -34.8 -35.4 -16.7
Standard Chartered 64.4 -4.1 -28.5 -45.3 -38.0
Challenger Banks
Virgin Money Holdings 1.4 -0.1 1.3
Aldermore Group 1.2
Shawbrook Group -16.6
FTSE All Share Banks Index 3.7 20.1 14.5 22.6 35.0 57.0
FTSE All Share Index 3.7 32.0 9.2 3.0 1.0 39.9

Source: Morningstar Direct. As at 31 January 2017. Note Metro Bank and Clydesdale Bank have been listed on the LSE for less than a year.
Past performance is not a reliable indicator of future returns. Note that current yield may not reflect historical yields.
Over the last year (to the end of January 2017) the share prices of all these banks, bar RBS, have risen, with HSBC, Barclays and Standard Chartered showing double digit growth. Lloyds’ share price, though, has come under pressure from the government selling down its stake, while RBS was hit by failing the Bank of England’s stress tests and mis-selling fines.
According to Capita’s UK Dividend Monitor report in January 2017, £10.4bn was paid out in dividends by the banks in 2016, mainly HSBC. HSBC, the UK’s second largest payer, distributed £7.5bn, up 17% year-on-year, thanks in no small part to weaker sterling. Special dividends were also part of the story. Strong profit growth at Lloyds prompted a special dividend of £360m. HSBC has been in the top three dividend payers in the FTSE All Share index every year since 2008.
An attractive long-term investment opportunity
While ratings agency Fitch raised concerns about the banking sector in the immediate aftermath of the decision to leave the European Union last June, banks’ strong balance sheets should allow them to cope with moderate negative shocks going forward.
Banks remain an attractive investment opportunity in the long term. They will be beneficiaries when interest rates rise from their historic lows. While the timescale for rate rises remains uncertain, an upwards trajectory seems the most likely outcome which will allow banks to increase their margins. Their profitability will also be boosted by increasing inflation. In addition banks continue to focus on cost cutting to deal with economic and structural challenges.
UK fund managers believe banks are back on track, and some have been adding to their positions in anticipation of higher dividends in the future.
Alistair Mundy, manager of Investec UK Special Situations has been a long standing holder of UK banks including HSBC, Lloyds, Barclays and RBS. The fund currently has approximately a 25% allocation to the sector.
Being a contrarian investor, Mundy was attracted to banking stocks at a time when they were deeply out of favour. “In 2007 everyone loved RBS. They said it would keep growing and making acquisitions and that it was run by a genius. It turned out to be run by a lunatic rather than a genius, and it didn’t continue to grow.”
He continues: “People say there are regulatory problems, but even the Bank of England has said we are at peak regulation. The fines and litigation will go away. People are also talking about the challenger banks, although many people are too lazy to change banks so the large banks will continue to make money from them. UK banks are priced like its 2008.” He believes, however, that the sector as a whole is now in much better shape, and this is yet to be fully appreciated by markets.
Other funds on our Recommended Funds list with a significant allocation to banks include Schroder Income, Majedie UK Equity, JOHCM UK Dynamic and Old Mutual UK Alpha.
Don’t forget about the challenger banks
Despite Mundy’s lack of concern, a number of challenger banks, which are making use of leading edge technology, could be positioned to disrupt the banking sector. Research broker Liberum highlights challenger banks will continue to deliver growth and earnings, and could be poised to threaten the status quo.
TD Direct Investing customers have also picked up on the challenger bank story, with trades skyrocketing by 188% over the course of last year.
If you’re keen to get exposure to UK banks take a look at each of the funds below. Or you could visit our stocks and shares page to find all the UK banks.
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[portside1] 17/2/2017 11:22

blair telling the remain voters to take to the streets and course ANARCHY

SO WHY HAS HE NOT BEEN ARRESTED

[micronesiac] 17/2/2017 10:18

Bonus day in barclays today. He's has sent a staff comms saying conduct has impacted compensation - particularly PPI....another monster provision next week?

[smurfy2001] 17/2/2017 08:52

Garbage stock

[sue999] 17/2/2017 08:43

240 will soon be the story of the past. Lots of shorts kick in just below 240 using the sentiment that 240 is hard to break. when they are on the wrong side and they have to close could pass 240 so fast.

[spoole5] 17/2/2017 08:26

Inability to break 240 a concern, many more failures and we'll be breaking down not up.

[diku] 17/2/2017 08:13

barc down..

[clond] 17/2/2017 08:11

Bank shares up again

[johnwise] 17/2/2017 08:08

Citigroup, Barclays to help with rand probe

[sue999] 17/2/2017 08:07

A final shake for to the next leg up.

[johnwise] 17/2/2017 08:05

Video

Trump Brings Coal Miners to Executive Order Rescuing US Coal Mines

[smurfy2001] 16/2/2017 21:54

Donald J. Trump ✔ @realDonaldTrump

Stock market hits new high with longest winning streak in decades. Great level of confidence and optimism - even before tax plan rollout!

11:34 AM - 16 Feb 2017

[johnwise] 16/2/2017 19:20

Barclays: Trump Presidency May Unleash Reagan-Era Stock Boom

Donald Trump’s presidency may unleash the same kind of investor enthusiasm that drove stocks to record levels during the boom times of President Ronald Reagan, according to strategists at Barclays Capital.

[optomistic] 16/2/2017 17:21

sue999...euphoria not flooded over to lloyds yet as well as Barcs.

[diku] 16/2/2017 16:22

Staying above 240p is still proving to be one step too high....

[astol] 16/2/2017 12:46

Oh suddenly at intra day highs

[astol] 16/2/2017 12:00

Market and Barc having a breather u till further breakout above 240p

[astol] 16/2/2017 08:18

sue999-Spot on post!!!!