Barclays Share Discussion Threads

[johnwise] 07/7/2021 18:59

VIDEO

Prime Minister's Questions (PMQs) - 7 July 2021

[johnwise] 07/7/2021 18:59

VIDEO

TRUM'P BREAKING NEWS July 7, 21

[portside1] 07/7/2021 16:16

Just a test neg

[jordaggy] 07/7/2021 16:14

At 0.9% interest rate on a fixed term mortgage, it's a wonder banks make any money at all!

[stutes] 07/7/2021 15:48

After yesterday's falls in asset prices it puts a question mark over how sustainable the rotation revaluation is going forward? If consustent growth firms are hit more than low growth or stagnating firms it means surely rotation firms could fall more?

[drylatt] 07/7/2021 15:47

UK banks get hiked ahead of sector's dividend 'Freedom Day'

Some analysts think banks will wait until the year-end to declare special dividends

Dividend forecasts and price targets for several FTSE 350 banks have been hiked by Goldman Sachs, UBS and other analysts ahead of what should be an eventful few weeks for the sector.

The Bank of England’s Prudential Regulation Authority is expected to lift its cap on bank dividends next week, with the European Central Bank doing the same the week after, opening the way for the sector’s own ‘Freedom Day’ to make payouts to shareholders in the third and fourth quarters respectively.

“We expect the PRA to eliminate dividend curbs on 13 July, paving the way for significant capital returns,” said UBS after upgrading earnings per share estimates for UK banks under its coverage by around 5%, largely driven by lower loan loss predictions.

With the banking sector’s earnings season coming up at the end of July, several brokers were rejigging their forecasts and share price targets.

UBS nudged up its price targets for Barclays PLC (LON:BARC) to 210p from 200p, Lloyds Banking Group PLC (LON:LLOY) to 54p from 51p, and NatWest Group PLC (LON:NWG) to 214p from 205p, but cut Standard Chartered PLC (LON:STAN) to 490p from 530p.

UBS said Barclays PLC (LON:BARC) remained its ‘top pick’ among the big lenders and Virgin Money UK PLC (LON:VMUK) among the challenger banks.

Goldman Sachs, meanwhile, hiked its price target for NatWest to 315p from 310p and HSBC PLC (LON:HSBA) to 600p from 585p.

After a new analysis of capital levels, Citigroup suggested mid-caps OSB Group PLC (LON:OSB) and Close Brothers Group (LON:CBG) have the potential to increase investor pay-outs.

For Berenberg, Barclays was the highlight, with strengthening economic outlook continues to creating more favourable conditions for the blue-eagle bank both in the UK and the US, with its investment bank arm appearing to be gaining further market share and potential for further clarity from management over cost reduction plans.

Growing piles of excess capital
Second-quarter results are likely to show strength in earnings driven by trading income and loan losses, the UBS analysts said, expecting confirmation of “the start of a strong recovery in activity levels”.

Stabilising credit card balances and strong growth in vehicle finance should be a net positive and, while mortgage spreads are under pressure strong volumes should have completely offset that.

With provisions for bad assets negligible UBS said this “[raises] the probability that UK lenders will find themselves materially overprovided against non-defaulted loans” once the PRA has confirmed the sector’s own ‘Freedom Day’.

“By the time results are declared, we expect the UK regulator to have put bank boards again in charge of capital distributions,” UBS analyst Jason Napier wrote.

“But our forecasts do not assume special dividends or buybacks at 2Q results.

“Though all banks under coverage could afford excess capital distributions, we assume that substantial payouts will wait for FY21 announcements, pending a reduction in mobility restrictions, increased vaccination coverage, an end to furloughs, substantial start to Bounce Back Loan repayments, stress test results and full year audit processes.”

However, just knowing that banks are able, should they wish, to pay out a growing pile of excess capital that stood variously at 6-27% of market cap at the end of the first quarter “should generate broader appeal for the shares, we think”.

Napier and co also reckon UK domestic banks are 14% cheaper on a p/e basis than the Eurobanks, which themselves are 45% cheap to the market.

[joestalin] 07/7/2021 13:51

UK will never return to normality until we repatriate a lot of these illegal migrants.

[johnwise] 07/7/2021 13:50

UK won’t return to normality until next spring, Chris Whitty warns

The UK is unlikely to see a return to normality this year despite the planned lifting of Covid-19 restrictions in the coming weeks, Professor Chris Whitty has warned.

[joestalin] 07/7/2021 13:44

Off topic: If you are worried about Covid - then build one of these:-

[johnwise] 07/7/2021 13:06

China’s Central Bank sends another warning to companies against assisting crypto-related businesses

China’s central bank told a Beijing-based software firm on Tuesday to shut down over suspected involvement in cryptocurrency transactions, and has warned companies against assisting crypto-related businesses.

[johnwise] 07/7/2021 12:47

More Virtue Signaling Left Wing Nonsense from the Bank of England


UK regulators outline plans to improve their diversity
07 Jul 2021

UK regulators the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and are seeking views on plans to improve diversity and inclusion in financial services Bank of England.

[jordaggy] 07/7/2021 11:52

Banks need the PRA to make a statement regarding dividends, which will be by the end of this month apparently, so news expected soon. Better be fricken good.

[prbshares] 07/7/2021 11:01

Manics : barc is certainly making a meal of it these days. Seems to be trading around 171-178 at the mo... we need one of those +12p days to take us into the comfort zone and onto your 193.80!

[manics] 07/7/2021 10:41

This has got to wake up into the session.

[rudder] 07/7/2021 09:41

Keep the faith.

[manics] 07/7/2021 09:37

Rudder: holding for that. Holding for 193.80...!

[forcemode] 07/7/2021 08:59

Well that didn't last long! :-(

[rudder] 07/7/2021 08:40

Manics, still see 184 anytime soon?

[manics] 07/7/2021 08:37

PRBSHARES: complacency maybe, though as long as there's the amount of liquidity flooding markets as is currently the case, I see BARC long as 'onside' imo.

If FTSE continues then BARC is catching up 180-190p imo. GL.

[johnwise] 07/7/2021 08:35

Asset strippers took out Debenhams.. Is Morrisons next on the hit list ? .. Morrisons own 80 percent of its properties

Morrisons: Government seeks assurances over Fortress takeover bid

[prbshares] 07/7/2021 08:32

Manics : the banks certainly react to the yields and during this summer month period they seem to 'over react'.

We have Interims on the 28th and a 200 mda climbing day on day...

Interesting to see how this pans out, but a surprising swing in share price from Monday to end of play Tuesday. We need some good consolidation on the climb to bring the 180+ into play... hopefully with possible divi talk coming this may be the case .