Barclays Share Discussion Threads

[bernie37] 20/2/2020 19:51

At a plc level litigation and conduct costs fell 16% year-on-year to £1.8bn. That was despite an additional £1.4bn provision for PPI compensation (compared to £400m in 2018).

[seewhatlmean] 20/2/2020 19:34

Who? Your dad? Bless.

[bernie37] 20/2/2020 19:29

Our view
Barclays is made up of two distinct businesses, Barclays UK and Barclays International, and it's banked some substantial progress in both in 2019.
A resilient UK bank is cutting costs and keeping bad loans to a minimum, generating a reliable income stream. The division contains the bits we all recognise as Barclays: a high street bank serving 23m retail customers and almost a million smaller businesses with current accounts, loans, cards and mortgages, plus wealth management.
Barclays International includes the business banking operations serving larger enterprises, a City and Wall Street investment bank, international card operations and payments. The combination of good US credit card growth, lower capital intensity, fee income and increasing corporate loans on the International side is putting the icing on the high street banking cake.
It's not all smooth sailing though. Barclay's has so far stuck by existing targets on profitability, but warned they're becoming increasingly ambitious given the economic backdrop and low interest rate environment.
There's only so low you can push interest rates on savings accounts before customers go elsewhere, but aggressive competition in the key mortgage market means the bank has to pass rate cuts on to borrowers. The net effect is that the bank earns a lower return on the cash it lends. With more mature loans rolling off on to lower rates, and net interest margins deflating as a result, that pressure will only build as time goes on.
The good news is that cost control looks to be improving substantially. Management have made it clear they're willing to flex costs to achieve profitability targets if necessary and falling conduct costs are a significant tailwind - although a new investigation into CEO Jes Staley is unwelcome. We also view Barclays' international cards business as a key asset in the longer term - helping to diversify the bank from UK only exposure.
Overall, Barclays is increasingly attractive in our opinion. Bank's often act as a barometer for the economies they operate in, and we think fears about Brexit's impact on the UK economy is behind Barclays' comparatively high 5.4% yield and lower price to book ratio of 0.49. However, the combination of international opportunities and a healthy domestic income stream could work nicely if the UK emerges from Brexit unscathed.

[rudder] 20/2/2020 19:17

What a creepy stalker.

[seewhatlmean] 20/2/2020 18:20

What's wrong Potty Bumside?Did they cancel your cleaning shift?Bless.

[bernie37] 20/2/2020 16:34

Drop in FTSE, back to where it started this morning

[pugugly] 20/2/2020 16:03

Backed down in a big way - Must have been very bad for staff morale and also (imo) very very bad for person to person verbal communication. If you phone or visit a co-worker i.e Team member- you will not be on your ocmputer but communication will (or should be) much faster and communication easier of both sides to give and understand correctly.

[portside1] 20/2/2020 16:00

Just back home nice rise and still 3. More days to go And put on the news thatSarah Jane mee show always asking the flooded people do you want boris to appear, is this woman stupid I live in the bridge and no he is far better doing other things We have always flooded if you do not like it move

[smurfy2001] 20/2/2020 15:26

Re-iteration.

EPS forecast for FY20 is 23.58p with a dividend estimated to be 9.68p.

P/E would be 7.4!

Yield is now over 5%.

No PPI fines.

Possible share buy backs.

This is finally an attractive stock.

[clond] 20/2/2020 12:11

Needs to clock up for the ex divi sell off.

[daveboy1] 20/2/2020 12:04

Finally sliced through - hopefully onwards and upwards now...

[klotzak] 20/2/2020 12:00

IF, and it's a massive IF, this holds above 180 for the afternoon 180 will shift from resistance to support... next stop 190, when MACD stalls

[bernie37] 20/2/2020 10:09

A surge in complaints about mis-sold payment protection insurance (PPI) weighed on Lloyds' finances last year.
The UK banking giant posted a 26% drop in pre-tax profits to £4.4bn as it paid out billions of pounds to customers in PPI compensation.
The bill for PPI claims in 2019 would be about £2.5bn, but Lloyds said no further provisions were needed as it had already set aside enough money.
It brings the total paid out by Lloyds over the mis-selling saga to £21.9bn.
Lloyds said there had been a "significant increase" in queries about PPI claims ahead of a deadline to claim in August last year.
The deadline, set by the City regulator, prompted a rush of enquiries, which pushed the bank's bill up from £750m in 2018.
"The group's statutory performance was impacted by a substantial PPI charge related to the deadline for claims submission," the bank's boss António Horta-Osório, said in a statement.
Lloyds has the biggest bill of all the banks for mis-selling of the insurance policy - which was intended to cover loan payments if, for instance, customers fell ill. But the insurance was often sold to people who did not want it or did not need it.
'Resilient results'
In the run up to the deadline, Lloyds said it had received about 5 million new claims but only about 10% of those resulted in a compensation payment. "Historic conduct issues remain disappointing but we continue to be focused on doing the right thing for our customers," Mr Horta-Osorio said.
Last year, Lloyds faced criticism for its handling of a multi-million pound scam at a branch of HBOS, which it now owns. Mr Horta-Osorio promised to implement recommendations of a report that said a scheme to compensate customers had "serious shortcomings".
"We have apologised to those impacted and are determined to put things right," he said.
Despite the surge in PPI claims, John Moore, an investment manager at Brewin Dolphin, said Lloyds appeared to be in a "decent place". "Lloyds' performance is typically a reflection of the wider UK economic situation," he said. "Political uncertainty influenced business and consumer confidence last year; yet, despite this challenge, the bank has posted resilient results."
Mr Horta-Osorio took the helm after bank was rescued during the 2008 financial crisis. The government sold its final stake in the bank in 2017.

[double down] 20/2/2020 09:11

How many analyst upgrades does this thing need to crack 180?

[portside1] 20/2/2020 09:08

It's pouring down here in the bridge

[seewhatlmean] 20/2/2020 09:06

Living in a fantasy world your nurse needs to increase your medication.

[jordaggy] 20/2/2020 09:06

Potty, the film is 30 years away, once everyone involved has passed on...;)

[portside1] 20/2/2020 09:05

Living in Ironbridge I can say this If the gov wants to reduce flooding then dredge the river It would give out a lot of summer jobs farmers could do the jobIt would reduce 45% of flooding

[seewhatlmean] 20/2/2020 09:00

Maybe if you meet Epstein and Stanley down Wetherspoons later they can help you with your revision?Bless.