Barclays Share Discussion Threads

[johnwise] 15/5/2019 08:05

Will the Global Warming Myth Bankrupt British Manufacturing ?


British Steel already loaned about £120million to pay for its European Union carbon bill

Fears for thousands of jobs amid claims British Steel needs a £75million government loan to secure its future




The truth about global warming
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[diku] 14/5/2019 22:41

Is the time frame infinity?...

[bernie37] 14/5/2019 17:56

UK banks: What to make of Lloyds, RBS and Barclays?
by Graeme Evans from interactive investor | 14th May 2019 14:23
Having underperformed since April's stock market peak, here's what to expect from the domestic lenders.

With UK banks making heavy weather of Q1 results and the Brexit shackles still in place, there's a clear lack of momentum behind shares of Lloyds Banking Group (LSE:LLOY), Barclays (LSE:BARC) and The Royal Bank of Scotland (LSE:RBS) as we head towards the second half of 2019.

But as the dust settles on a lacklustre set of quarterly earnings, it's worth remembering that there are still analysts in the City who see reasons for optimism around domestic banks.

They include UBS's banking expert Jason Napier, who after taking a closer look this week at the sector's Q1 performance has stuck to his 'buy' recommendations for Lloyds, Barclays and RBS.

Significantly, he notes the trio offer free cash flow yields of between 8% for Barclays and 13% for RBS, compared with Asia-focused HSBC (LSE:HSBA) and Standard Chartered (LSE:STAN) trading at 5% to 6%.

And whereas HSBC's reassuring and resilient Q1 performance puts it on a 33% price/earnings (PE) premium to the sector and more than double its 15-year average, the UK domestic banks are trading at fairly meaningful discounts to their longer term averages.

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Napier points out that this comes despite capital bases being fully rebuilt, and with clean balance sheets and the prospect of share buy-backs over the next 18 months. There's also the hope of a more favourable interest rate environment once Brexit uncertainty eases.

In the meantime, however, UK domestic banks are finding the going tough after their Q1 earnings missed consensus forecasts by 4%. This was driven by revenues 3% to 6% below estimates, partially offset by a better performance on costs and impairments.

Bank sector performance since FTSE 100 hit its 2019 peak on 23 April

Source: TradingView Past performance is not a guide to future performance

UBS's review of the results and various industry benchmarks point to some stability in conditions for the banks, although any recent suggestion that the squeeze on mortgage market profitability is easing appears wide of the mark.

Despite the softer Q1 results, all UK banks have reiterated their return on tangible equity (ROTE) targets for 2019/20. UBS, however, thinks the market is expecting a material failure to deliver on these targets, meaning that Barclays, Lloyds and RBS are trading on between 6.6x and 7.9x current year earnings per share.

Lloyds Banking Group Q1 2019 results in 90 seconds
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Napier said:

"On our numbers, which assume that the banks fall short of their ROTE objectives, principally due to lower-than-planned revenues, Lloyds and Barclays are the sixth and seventh cheapest stocks in our coverage."
Lloyds anticipates a return on equity figure of between 14% and 15% in 2019, compared with 12.5% in the most recent quarter. Its tight control of the business has already enabled a share buyback of £1.75 billion, alongside a dividend yield of above 5%.

The recent announcement from regulators on the systemic risk buffer requirement for UK's ring-fenced banks should give Lloyds more room to move in terms of future shareholder returns. Some analysts think this could increase the capacity for share buy-backs by £1 billion in 2019.

Napier, meanwhile, thinks RBS is capable of returning £6 billion in capital to shareholders in 2019, equivalent to around 20% of its market cap. He expects part of this capital to be devoted to an off-market repurchase of 5% of the company from the Treasury, taking the government's stake down to 57%.

His price target for RBS is 290p, with Lloyds Banking Group priced at 75p and Barclays at 220p.

These articles are provided for information purposes

[bernie37] 14/5/2019 17:55

UK banks: What to make of Lloyds, RBS and Barclays? - Analysis & Commentary - interactive investor



hxxps://www.ii.co.uk/analysis-commentary/uk-banks-what-make-lloyds-rbs-and-barclays-ii508233

[bernie37] 14/5/2019 17:28

hxxp://www.marketbeat.com/URL/?URL=hxxps://moneyweek.com/506529/edward-bramson-the-quiet-activist-barging-into-barclays/
Edward Bramson: the quiet activist barging into Barclays - MoneyWeek

[bernie37] 14/5/2019 17:22

When it comes to pay, Barclays is a bit of a moving target. The British bank revealed in February that it increased its bonus pool for the first time in five years for 2018. Incentivized pay for investment bankers was up around 9% over 2017 totals. But then in April, Barclays did an about-face, announcing that bonuses accrued by investment bankers in first quarter would fall by double digits compared to Q1 of 2018 after a sluggish first three months of the year.

However, that news came to light before activist investor Edward Bramson got trounced in a motion calling for his appointment to Barclays' board. Bramson, who garnered less than 4% of independent shareholder votes, has been calling for Barclays to take a knife to its investment bank. With Bramson thoroughly defeated, Barclays may be more willing to open its purse strings in the coming quarters. Truth be told, Barclays remains rather competitive when it comes to investment banking pay, even with the recent fluctuations in performance and changes to the bonus pool.

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Below are newly updated compensation numbers at each level for Barclays' bankers in New York, courtesy of Wall Street Oasis. We then compared Barclays' salary and bonus totals to the averages of the 10 biggest bulge-bracket banks in New York. As you can see in the first chart below, with the exception of vice presidents, salaries at Barclays fall within 10% of the average bulge-bracket bank. Associates at Barclays actually earn bigger salaries and bonuses than the average New York banker. However, VPs take home around $185k in salary compared to an average of $227k elsewhere.

When it comes to bonuses (second chart), associates at Barclays trump the competition once again ($83k vs. $76k). However, the advantage craters as soon as bankers reach the VP level, where rivals earn an average bonus of $148k compared to just $110k at Barclays. There's not much difference at the director/MD level.

In short, you’re likely to earn less at Barclays than at the average Wall Street bank, but the differences aren’t enormous, particularly considering U.S. banks are currently much healthier than U.K. and European rivals.

Average salary at Barclays vs. Wall Street



Average bonuses at Barclays vs. Wall Street



(Note: First and second-year analyst salaries and bonuses were averaged)

Follow @BeecherTuttle

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[bernie37] 14/5/2019 17:18

Barclays salary and bonus expectations for New York investment bankers | eFinanci
hxxps://news.efinancialcareers.com/uk-en/3001038/barclays-salary-new-york
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[johnwise] 14/5/2019 16:47

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[m1k3y1] 14/5/2019 16:10

still waiting for some signs of life from Staley about his proposals for Barclays going forwards.
He is about as much use as a chocolate teapot to be honest.

[portside1] 14/5/2019 15:47

back to barcs added more yesterday

[portside1] 14/5/2019 15:45

the scum in the eu will not like him to elected they hate him because he spills the beans on their fiddling and lies .


yes I do agree get rid of all in the commons ,

and farage is our only hope of removing most of the scum and fraudsters

[m1k3y1] 14/5/2019 15:14

Oh, I don't dispute that there are others who are just as bad .
Frankly I would sack the lot of them BUT farage really takes the biscuit. He is even hoping to get re-elected to the eu !!!
Not bad for someone who thinks we should leave . Maybe it will increase his already fat eu pension.

[portside1] 14/5/2019 14:48

YOU POST THE WORD audacity , all those that have attempted to betray the public vote on leaving the eu are the guilty of destroying the will of the people their audacity is a disgrace they are the enemy of freedom and democracy

[m1k3y1] 14/5/2019 14:29

Makes me laugh. He has the audacity to claim an eu pension package and then say we need to leave LOL.
Maybe he will give his pension back ?

[portside1] 14/5/2019 14:18

the only reason he is coming back is because the LIAR AND TRAITOR MAY AND HER LYING SCUM FRIENDS , SHE ALONG WITH ALL THOSE THAT HAVE TURNED THEIR BACKS ON DEMOCRACY

WITHOUT DEMOCRACY WE HAVE NOTHING

[m1k3y1] 14/5/2019 14:16

He also said 'I'm stepping back from the front lines' LOL

[portside1] 14/5/2019 14:06

KEN HE DID NOT JUST WALK AWAY ,HE SAID ONCE THEIR HAD BEEN A PUBLIC VOTE ON LEAVING THE EU HE WOULD STEP DOWN , FACT

[kenbachelor] 14/5/2019 14:04

Farage? Was he the guy who used to be with UKIP and as soon as he got people to vote for Brexit, decided to walk off and leave them?

[johnwise] 14/5/2019 13:02

The UK employment rate remained at a record high in the three months to March, although wage growth fell.

[m1k3y1] 14/5/2019 09:39

I see we are back to promoting chump again.
Any chance of staying with BARC.

[johnwise] 14/5/2019 07:07

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National Economic Council Director Larry Kudlow on the April jobs report, U.S. economic growth, former Vice President Joe Biden's comments on the tax reform legislation and the outlook for Federal Reserve policy.

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