Barclays Share Discussion Threads

[johnwise] 22/8/2019 07:02

Brexit bombshell: UK set to announce huge Asian trade deal despite 'Project Fear' ploy


THE UK will allegedly sign a bombshell post-Brexit trade deal with the Republic of Korea according to reports.

[johnwise] 21/8/2019 20:43

Just imagine being able to buy products from around the world without the tax of EU price fixing. Utterly shameful how much we've had to pay for goods we could get cheaper elsewhere all because the EU protectionism..

[portside1] 21/8/2019 20:27

Do not buy Eu cars let them crash

[keifer_1] 21/8/2019 17:09

Maybe should have held off a a cheaper price.

[delboy45] 21/8/2019 17:07

Barclays Has 50% Upside And A Nice Margin Of Safety

I hope so, I bought in this morning.

[johnwise] 21/8/2019 16:00

Without our money the EU are sunk and they know it, that is why they keep demanding money.They have not had accounts signed off for the last eleven years.?

'We don't owe a penny!' Peter Bone furious at EU demands for UK to pay £39bn to leave EU

BREXITEER MP Peter Bone lashed out at paying a £39billion divorce bill to the EU and questioned why the Government isn’t going “straight for a free trade agreement”.




EMMANUEL MACRON will order Boris Johnson to cough up the £39 billion Brexit bill even if the United Kingdom quits the European Union without a deal.

[johnwise] 21/8/2019 15:49

Barclays Has 50% Upside And A Nice Margin Of Safety

The bank has a solid loan-to-deposit ratio, giving it a defensive nature. Attractive metrics vs peer group.

Further possible upside from shareholder activism, and UK economy upside through new UK government and Brexit conclusion.

Barclays PLC (BCS) looks undervalued compared to peers and it has an activist investor breathing down its neck looking to increase returns.

[johnwise] 21/8/2019 15:42

"While defending British Prime Minister Boris Johnson, Donald Trump said he is the right man to take Britain out of the EU. He also said the UK was not being treated very well by the European Union"

Donald Trump: EU has not treated the UK very well

Video


UK Company: "Hardide Shares Jump After Three New Reactors Ordered Amid Output Push"

[buywell3] 21/8/2019 08:45

buywell wants you to know:

DOW Theory at US yesterday close now points to the start of a BEAR MARKET as of NOW

[johnwise] 21/8/2019 07:49

I agree with Trump, "I don't understand why we're having this conversation".

Trump explodes on the Squad: 'I call them AOC plus three'

Video

[johnwise] 21/8/2019 06:58

The New York Times

European Companies Get Rich in China’s ‘Open Air Prison’

Volkswagen, Siemens and more are making money in Xinjiang, where minorities are being herded into detention camps.

[portside1] 20/8/2019 19:30

Beginning to think jes has just lied to investors just to keep is job now that is 4 years is up I expect he will announce he is leaving .

[portside1] 20/8/2019 17:06

One thing is for sure jes. As failed 4 years and ever time he speaks it falls .Is he a dud the share price says he is a dud Jes is a fraud is statements do not match the sp

[bernie37] 20/8/2019 15:40

Does Bramson's Restructuring Plan For Barclays Make Sense?
Trefis deep-dives into the rationales behind Bramson’s proposal, and the potential impact on Barclays if it is successfully able to implement the proposed changes, parts of which are highlighted below. Our full numbers behind what Barclays could look like in 3 years if it adopts Bramson’s strategy is available in an interactive dashboard. Additionally, you can find more Trefis Financial Services company data here.
Who is Edward Bramson, and what are the changes he proposes for Barclays?
Activist investor Edward Bramson is the third-largest shareholder in Barclays (NYSE: BCS) (with a stake of 5.5%) through his investment vehicle, Sherborne Investors
Barclays has been under pressure from Bramson over recent months to essentially shut down all of its securities trading operations – a move aimed at shrinking the British banking giant’s exposure to the capital-intensive trading business while also improving its overall RoE (return on equity) figure.
Bramson opines that the trading operations lack scale, tie up too much capital, and deliver too small a return
We believe that Bramson’s strategy makes sense – especially in light of Barclays weak securities trading run over recent years. The bank has also struggled to compete profitably with the U.S. investment banking giants.
Notably, this has hurt returns for the bank’s investment banking division, with profits being driven primarily by its M&A advisory, and debt & equity underwriting units
Understanding Key Rationales Behind The Proposed Changes
Barclays’ Corporate & Investment Banking division has margins that are identical to the figure for other divisions – hardly justifying the significant amount of capital it ties down
Over the last few years, Barclays’ CIB division pre-tax margin averaged around 24% while pre-tax margin for Consumer, Cards & Payment division averaged a much higher 30%.
CIB’s Revenue Yield is roughly half that of its retail banking arm, Barclays UK:
Despite the fact that Risk Weighted Assets allocated to the Barclays UK division are roughly 40% that for the CIB division, revenues for Barclays UK are nearly 75% that for CIB
As of 2018, Barclays’ UK division revenue yield was 9.8% – almost 80% more than CIB’s revenue yield of 5.5%
CIB’s most profitable unit, Advisory & Underwriting Services, contributes less than 12% of total revenue while contribution of Securities Trading is more than 20%
Another argument supporting Bramson’s approach is the fact that CIB’s most profitable unit, Advisory & Underwriting Services, contributes just around 12% of Barclays’ revenues
On the other hand, the highly volatile and capital-intensive securities trading business contributed around 23% of total revenues in 2018.
To summarize, Barclays’ securities trading business is volatile, less profitable and lacks the scale required to compete profitably with its U.S.-based peers. As a result, Bramson’s approach to cut back on the investment banking activities has a lot of merit.
How Would The Changes Proposed By Bramson Impact Barclays’ Key Metrics Going Forward?
#1. The Bank Would Exit The Sales & Trading Business
Barclays’ securities trading revenues would shrink from £4.4 billion in 2018 to just £1.5 billion in 2020 before being completed phased out by 2021

#2. The Move Coupled With Associated Restructuring Costs Would Weigh On Barclays’ Top Line and Margins In The Near Term

Barclays’ operating margin is likely to steeply decline to around 10.9% in 2019 due to one-time restructuring charges and elevated funding costs
But an overall shift towards more stable revenue sources should help this metric reach 20.5% in 2021
#3. However, The Business Model Will Focus On A More Stable Revenue Source
This radical measure is expected to reduce revenue contribution of Barclays’ Corporate & Investment Banking division to less than 30% in 2021 from 47% in 2018
At the same time, the Retail Banking’s contribution is expected to jump to nearly 70% in 2021 from around 57% in 2018.
#4. And In The Long Run, Profitability Would Increase – Boosting The Return on Equity (RoE) Figure
Reducing the higher-risk business should help the bank achieve better profitability in the long run, as the bank was unable to generate constant acceptable returns from its capital-intensive and highly leveraged trading business.
Better profitability coupled with stable common equity should help the bank almost double its return on equity to around 6.3% by 2021
#5. At The Same Time, Reduction In Trading Assets Would Have A Direct Impact On Barclays’ Risk-Weighted Assets (RWAs)
Since trading assets make up a significant portion of the RWAs, a reduction in the trading portfolio will lead to a steep decline in RWAs.
We expect Barclays’ Risk-Weighted Assets to fall by more than 25% and reach around £230 billion in 2021
#6. This, In Turn, Should Help Barclays’ Core Capital Ratio Figure Nudge Higher
Lower RWAs coupled with stable common equity should help the bank’s CET1 ratio grow and reach around 17.6% – a figure that is 30% higher than the 2018 level of 13.3%.
#7. Finally, The Freed-Up Capital Would Be Used To Boost Dividends As Well As Share Repurchases
In addition to reducing the RWAs, the plan would increase Barclays’ cash on hand considerably.
As a result, Barclays will be able to return a bulk of its excess capital to shareholders in the form of dividends and share repurchases.
We expect Barclays to return around £2.5 billion to shareholders in 2021- a figure which is more than 3 times the 2018 payout of £0.8 billion
Conclusion:
We believe that Bramson’s transformation plan, which includes reducing higher-risk businesses that were unable to deliver constant justifiable returns, could have an overall positive long-term impact on its profitability.
If Barclays is able to implement the required changes successfully, it would be able to generate much higher returns for investors through a leaner business model.
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[portside1] 20/8/2019 14:24

The ceo needs to leave or act .Nigh on 4 years and he has failed The share price says investors and funds do not believe In the ceo statements .That means we have a dud at the helm .The share price does not lie

[m1k3y1] 20/8/2019 13:58

Barclays: Weak H1 Results, But Priced In At 0.5x P/TBV; Upgrade To Neutral

[portside1] 20/8/2019 13:16

Merkel tells tusk and drunker that time is running out They must act now or the Eu will collapse

[portside1] 20/8/2019 13:12

News from Germany .german gov to tell the Eu leaders they must open up deal with uk . R they will act alone to do a dealThe Eu is about to act on brexit

[portside1] 20/8/2019 13:02

It appears jes is not doing what is statements say Still scrips and still no sign of returning money to investors For the last two years the same statement .In time. That could be 100 years