Barclays Share Discussion Threads

[grahamite2] 24/10/2017 14:58

Not only is the dividend shocking, it's half what it was 2 years ago. So by contrast with Lloyds, say, this company is going backwards. I struggle to see the attraction.

[portside1] 24/10/2017 13:24

tomorrow cliffs of capri my nap of the month

[portside1] 24/10/2017 13:06

manics today Newcastle 15.10 beatbox rhythm took 7.1 50 ew

[johnwise] 24/10/2017 12:16

No Bitcoin in UAE, Warns Central Bank

The UAE Central Bank has warned about the use of cryptocurrency, including Bitcoin, saying it did not issue a license to allow the currency in the local market.

[johnwise] 24/10/2017 11:29

Barclays May Hire More Traders as CEO Embraces Risk

Barclays Plc is considering a push into riskier debt trading and a return to dealing in complex credit products in the U.S., according to a person familiar with the strategy.

[portside1] 24/10/2017 08:47

manics no thought it was a cert

[jordaggy] 24/10/2017 02:30

Interesting Bernie.

[dr biotech] 23/10/2017 20:15

Trump draft dodging coward



Has he said how he would pay for the tax cut that would save his familly 500m yet?

[bernie37] 23/10/2017 20:04

Barclays shares rise on Berenberg upgrade, Trump tax cut plans
Share
15:03 20 Oct 2017
Barclays has the "most attractive" UK business among its peers, according to Berenberg
Barclay
Barclays will be a major beneficiary of planned US tax cuts
Barclays PLC (LON:BARC) shares gained as Berenberg upgraded the stock to a ‘hold’ rating from ‘sell', saying the quality of the bank’s UK business has been “overlooked221; as investors avoid assets in the nation due to Brexit uncertainty.

Berenberg said it believes Barclays has the “most attractive” UK business among its peers because it has grown “counter-cyclically” and benefits from “superior̶1; risk-adjusted margins and a low cost income ratio.


While the UK business is “best-in-class and is cyclically well-positioned̶1;, its strength is diluted by the lender’s wider strategy, Berenberg added.

“In particular, we believe the decision to prioritise the growth of the investment bank (IB) over dividends is a strategic misstep,” Berenberg said.

“In the short-term, capital returns must take priority. Longer-term, a break-up of Barclays would unlock the discount to TBV (tangible book value).”

Barcalys shoud divest in investment bank and US cards unit, says Berenberg

On its argument for a break-up of Barclays, Berenberg said synergies between IB and the UK retail and Barclaycard businesses are limited, particularly given structural reform.

“Divesting the IB would allow greater balance sheet certainty and for each business to be valued on a true multiple,” the broker said, leaving its target price at 200p.

“Sale of the US cards business could also release capital and unlock value.”

Since neither strategy is likely in the near term, these options are not reflected in the current share price, Berenberg said.

Conduct costs could weigh on TBV growth

The broker expects about 3.5% annual growth in TBV from 2017 but said its estimates are “far from certain” given the group’s pending conduct issues.

It predicts conduct costs of US$3bn related to the mis-selling of mortgage-backed bonds in the US along with a £500mln settlement with the UK Serious Fraud Office on charges of fraud over the way the bank raised billions of pounds from Qatari investors enabling it to avoid a government bailout during the financial crisis.

Such costs would extinguish the bank's TBV growth, Berenberg said.

“Without meaningful dividends or sustainable TBV growth, we see little reason to buy Barclays,” it said.

“However, with the stock trading on 0.69x our 2017E TBV and considering the strategic options available to management, we believe risks to Barclays’ current share price are increasingly evenly balanced.”

Barclays, which reports its third quarter results on Thursday, saw its share price rise 1.6% to 195.15p in afternoon trading.

Trump's tax plan provides another lift to Barclays shares

Shares were also supported by news that the US Senate approved a budget resolution for the 2018 financial year that will pave the way for tax cuts.

US President Donald Trump called out senator Rand Paul, who said he was "all in" for massive tax cuts even though he was the only Republican to vote against the budget measure a day earlier.

“The Budget passed late last night, 51 to 49. We got ZERO Democrat votes with only Rand Paul (he will vote for Tax Cuts) voting against,” Trump wrote on Twitter.

Barclays is expected to be the biggest beneficiary of lower US taxes among major UK banks since it has the highest US contribution to group earnings.


TOP STORIES

picture of London UK Commercial Property Trust sitting pretty outside the City

[manics] 23/10/2017 17:15

Dakota just placed third. Did you have it on the nose? 7/1 at the off.

[portside1] 23/10/2017 15:57

Windsor today I have had a good bet on Dakota city 4.1 I like this a lot
but dyor

[grahamite2] 23/10/2017 13:46

Why would it push up to 300p given the collapse in dividends? I'd have thought a return to 140ish is more likely.

[bernie37] 23/10/2017 13:31

Should read divi,

[bernie37] 23/10/2017 13:17

Trivia. Yes, share price your asking a lot

[portside1] 23/10/2017 13:00

and a push up over the next 6 months to around 300p

[portside1] 23/10/2017 12:59

8 days till up date , jes must deliver or go we need to hear about the rise of the div to start next year

[johnwise] 23/10/2017 08:08

Trump Calls Up Reserves, Pilots Needed ?

Video

[johnwise] 22/10/2017 17:23

Barclays sued for 'engineering' the downfall of quarrying company Portland Stone

A quarrying company which specialises in Portland stone is suing Barclays, saying that the bank ‘engineered’ the 2010 administration of a subsidiary.

[fitzybeast] 22/10/2017 12:20

Chart looks positive, it would be nice if we see a rise up to 240 by christmas. As the past has proved, it can sometimes happen sooner than you think.

[bernie37] 22/10/2017 10:29

Thu 26th Oct: Global financial services provider Barclays (BARC) and information services and analytics group RELX Group (REL) both give Q3 updates.