Barclays Share Discussion Threads

[keifer derrin] 26/2/2017 07:35

not sure if it's been posted....



Barclays has cut its dividend in half. Bonuses are running at three times the level of distributions to shareholders. And the investment bank, even after a round of pruning, still isn’t earning returns greater than its cost of capital. A couple of years ago, under hapless former chief executive Antony Jenkins, Barclays would have been hammered for turning in such statistics. Under his successor, Jes Staley, however, all is apparently bright. He says Barclays is “just months” away from completing its restructuring and that 2016 was a year of “strong progress”.

Hold the champagne. Yes, pre-tax profits nearly tripled to £3.2bn as misconduct charges fell way, which is undoubtedly encouraging for shareholders. It is also true that the UK retail bank is purring nicely and that Barclaycard is as reliable as ever. And the cut in the dividend can be deemed old news: it was signalled a year ago as a prudent way to clear the decks and enable “non-core” assets to be shed faster.

But, come on, Staley’s biggest call as the incoming boss was to retain the ambition to go head-to-head with the big Wall Street investment banks. He is not yet close to justifying that decision. On the published figure, return on tangible equity in the unit was just 6.1% last year. Staley can theoretically spirit the figure to 8% by excluding the cost of closing an office and adjusting for an accounting rejig on bonuses. But that still doesn’t get returns to the target of 10%-plus. The refrains that bonuses still have to flow to stay “competitive” and that “I like the talent in that business” are wearingly familiar and weak.

Staley’s other big call has been to refuse a settlement with the US Department of Justice over distributing mortgage junk between 2005 and 2007. Barclays thinks the department’s claims are “disconnected from the facts” and that it has a duty to defend itself “against unreasonable allegations and demands”. Top marks for fighting your corner; applause will be entirely merited if shareholders end up better off by a billion dollars or two. But let’s see it happen first.

In the meantime, the note of triumphalism that accompanied Thursday’s results jarred. To be fair to Staley, he’s talking the right language of rapid digital transformation and Barclays feels a more confidently managed operation than in the Jenkins years. But this remains a work in progress. Before Staley takes too much comfort from the 50% improvement in the share price since last summer, he should take a step back. The shares were 260p on the day Jenkins was fired in 2015 and are 229p now.

[spoole5] 24/2/2017 19:50

As soon as barclays starts to increase it's dividend next year income funds will be buying. Looking for 275 by year end here. The rise we've had it was obvious the results would mean people taking profits.

[johnwise] 24/2/2017 18:22

The Fund Managers Betting On Banks

Morningstar data reveals more than 10 funds invest in HSBC, Barclays, RBS and Lloyds in their portfolio as this week five major UK banks posted mixed 2016 results

[bernie37] 24/2/2017 16:27

Barclays PLC and Barclays Africa agree separation terms
Thursday, 23 February 2017
Barclays Africa Group today announced that it has agreed terms for operational separation with UK-based Barclays PLC, which is reducing its shareholding in Barclays Africa. The agreement is expected to unlock opportunities for Barclays Africa as an independent pan African bank. UK-based Barclays PLC announced last March that it intends to sell the majority of its shareholding in Barclays Africa over a period of two to three years.
Barclays PLC currently owns 50.1% of Barclays Africa. Following the reduction of Barclays PLC’s shareholding below the 50% mark, Barclays Africa will be able to continue using the Barclays brand at its operations outside of South Africa for three years. Barclays Africa will receive certain services from Barclays PLC on arms’ length basis for a transitional period, typically up to three years.

“It is a good outcome that enables us to complete the separation, and to provide continuity and improved service for our customers,” holds Maria Ramos, chief executive, Barclays Africa.

An important feature of discussions has been the provision for a broad-based black economic empowerment scheme. While the full details are still under consideration, we are pleased to announce that Barclays PLC has agreed to contribute an amount equivalent to 1.5% of Barclays Africa’s market capitalisation, or R2.1 billion (based on a Barclays Africa’s share price of R168.69 on 31 December 2016) towards the establishment of such a scheme.

“Separation has a number of implications for our business,” said Ramos. “It gives us the opportunity to unlock the potential to do things differently and build energy and momentum for our future as a pan-African organisation.”

Alongside a black economic empowerment scheme, Barclays Africa also wants to create an equity proposition for our staff in the next 12 to 18 months. This will give our people the opportunity to benefit from share ownership, and to share in the future growth of our business.

Barclays PLC has submitted an application to the South African Reserve Bank for approval to reduce its shareholding in Barclays Africa Group to below 50%. The application, which also requires the approval of the Minister of Finance, includes the terms of the separation payments and transitional services arrangements, which have been agreed between Barclays PLC and Barclays Africa.

The agreement provides for contributions by Barclays PLC totalling GBP765 million (R12.8 billion based on 31 Dec 2016 exchange rate) primarily to fund the investments required for Barclays Africa Group to separate from Barclays PLC as follows: £515m for investments required in technology, rebranding and other separation projects; £55m to cover separation related expenses, of which £27.5m was received in December 2016; and £195m to terminate the existing service level agreement between Barclays and BAGL, relating to the Rest of Africa operations acquired in 2013.

The expectation is that the financial contributions will neutralise the capital and cash flow impact of separation investments on the Group over time.

[bernie37] 24/2/2017 16:14

Deutsche Bank was a buyer of the shares of UK rival Barclays PLC (LON:BARC) before yesterday's results, and it remains so after them.

The German bank said Barclays' operating performance was solid while the better-than-expected capital ratio was a bonus.

“However, the market remains concerned about the potential headwinds in train (pensions, IFRS9, Basel, litigation, preference share redemptions to name a few),” Deutsche (DB) noted.

DB has left its forecasts for the current year unchanged, and nudged up forecasts for next year and the year after by 3%.

“Although our earnings forecasts do not move significantly, we think the results reconfirm our thesis of better cost performance in future years, whilst the capital beat provides a buffer to potential head-winds,” DB added.

Trading on 80% of their tangible net asset value (TNAV) , DB said the shares, trading at just nine times 2018's projected earnings per share, remain a 'buy.

It has upped its price target to 273p, based on a sum of the parts valuation. The shares currently trade at 225.5p.

Key downside risks relate to the cost of regulatory change, litigation, disappointing capital markets, an unexpected spike in credit costs, adverse outcomes on pension triennial agreement, and market & economic uncertainty on implications of Brexit.

Share
John-H.jpg
John Harrington

[sue999] 24/2/2017 15:08

if we close above 228 , a hammer candle will be formed which is a buy signal. I shall buy back my shares then!

[tenapen] 24/2/2017 14:29

Still falling !

Ho dear.

[clond] 24/2/2017 14:22

Oh I agree cape view I voted out but fleet st and commerce like to ram it to us we were wron and the bbc are no better. Long term everything will be fine but every chance to squeEl then the rich pig will.

[capeview] 24/2/2017 14:19

@clond, 50 billion brexit is a bit of a kick in the teeth, but seeing as to how most of the EU is in such dire straits, is it the lesser of 2 evils. After all, we could be in for another Greek Bailout, and who will pay for that?

[clond] 24/2/2017 14:12

Don't think trump cares if the ftse crashes or not sue999. Might be more worried about the Dow but that ain't going through a 50 billion brexit.

[astol] 24/2/2017 13:56

Heavy selling and shorting on Barc seems the 242p yesterday was the top and I cant see the Dow perpetually going up and as I said earlier a correction is coming imminently imo.

[tenapen] 24/2/2017 13:14

I'm amazed that you need to read this in a publication !

This thread makes me :-)

[smurfy2001] 24/2/2017 11:48

Still shafting the investors.

The bank is paying out £500m to investors from the 3p a share dividend – as flagged last year. However, it is still handing £1.5bn to staff in bonuses. A total of 364 Barclays staff were paid more than £1m last year, including 11 who received more than £5m.

In 2015, when the shares were changing hands at 260p, McFarlane promised to double the share price in three years.

[smurfy2001] 24/2/2017 11:42

Critical article on Barclays,



Before Staley takes too much comfort from the 50% improvement in the share price since last summer, he should take a step back. The shares were 260p on the day Jenkins was fired in 2015 and are 229p now.

[smurfy2001] 24/2/2017 11:33

portside, you make a good point on the chairman. Seems to be very quiet!!

[extrovert] 24/2/2017 11:21

All the British banks who have had American bankers running them have all gone to the dogs and been done for theft and dishonesty. You have to wonder whether or not that was part of their big plan to ruin U/K banks.

[portside1] 24/2/2017 10:55

yes he was not honest which I find unbelievable thought he was more honest . but wait for the agm he will be their to face the holders .
HE DELIBRATELY MISLED INVESTORS THATS FOR SURE ALMOST A CRIMINAL ACT

[micronesiac] 24/2/2017 10:44

Indeed Porty - Jes ignoring the elephant has caused this monster tumble

[portside1] 24/2/2017 10:00

will say this jes deliberately did not mention certain issues that was very dishonest would of expected better of him .

all will be ok just wait for agm 8 weeks

[portside1] 24/2/2017 09:57

I did post saying end of 2017 so just add a few more on dips but only a few like around 5k a time a monthly pension

[portside1] 24/2/2017 09:56

i will not be selling have deep pockets I just feel for those that have not

[tenapen] 24/2/2017 09:50

what would he do with his days without spending them at his computer posting endless moans about barc and tsco.