Barclays Share Price (BARC)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Barclays	LSE:BARC	London	Ordinary Share	GB0031348658	ORD 25P

	Price Change	% Change	Share Price	Shares Traded	Last Trade
	+0.42p	+0.23%	182.60p	22,914,836	16:35:29

Bid Price		Offer Price	High Price	Low Price	Open Price
182.80p		182.90p	184.18p	181.54p	182.36p

Industry Sector	Turnover (m)	Profit (m)	EPS - Basic	PE Ratio	Market Cap (m)
Banks	21,076.00	3,541.00	-10.30		31,217.0

Related Shares
HSBC (HSBA), Lloyds (LLOY), CYBG (CYBG), Secure Trust (STB)

Barclays (BARC) Latest News (1)

Barclays News

Date	Time	Source	Headline
17/8/2018	06:02	ALNCF	Alliance News Flash Headline
16/8/2018	16:00	UKREG	Barclays PLC Scrip Reference Share Price
16/8/2018	13:00	UKREG	Barclays PLC Publication of Suppl.Prospcts
16/8/2018	06:33	ALNC	PRESS: Barclays Trader Took USD19 Million Hit From Turkish Bonds
15/8/2018	15:52	DJN	BlackRock Among Investors Hit By Turkey Turmoil
14/8/2018	16:00	UKREG	Barclays PLC Director Declaration
14/8/2018	12:30	UKREG	Barclays PLC Director/PDMR Shareholding
13/8/2018	13:47	DJFR	Barclays va placer ses activités Europe sous le contrôle de Barclays Bank..
13/8/2018	12:40	DJN	Barclays to Put European Branches Under Irish Control -Reuters
10/8/2018	15:30	UKREG	Barclays PLC Holding(s) in Company

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Date	Time	Title	Posts
19/8/2018	17:47	ACTIVE BARCLAYS TRADERS CLUB	126,984
15/8/2018	14:55	Smart Investor Problem	11
20/5/2018	21:02	911- THE BIGGEST TV LIE IN HISTORY...THE AIR LINERS WERE FAKED!	28
23/2/2018	08:35	BARC and other bank charts	43
17/1/2018	20:55	Has Barclay a hidden agenda, let`s short it anyway	424

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19/8/2018 09:20	Barclays Daily Update: Barclays is listed in the Banks sector of the London Stock Exchange with ticker BARC. The last closing price for Barclays was 182.18p. Barclays has a 4 week average price of 179.24p and a 12 week average price of 179.24p. The 1 year high share price is 220.10p while the 1 year low share price is currently 177.30p. There are currently 17,095,839,930 shares in issue and the average daily traded volume is 51,776,008 shares. The market capitalisation of Barclays is £31,217,003,712.18. Read Full Thread Reply
16/7/2018 20:22	bernie37: Barclays Mulls U.S. Push as Activist Looms Executives debate whether greater exposure to the U.S. retail market could both generate revenues and fund its U.S. operations more efficiently Barclays’s headquarters in the Canary Wharf district of London. The lucrative U.S. market has long drawn European banks trying to expand out of saturated home economies. Barclays’s headquarters in the Canary Wharf district of London. The lucrative U.S. market has long drawn European banks trying to expand out of saturated home economies. PHOTO: SIMON DAWSON/BLOOMBERG NEWS By Max Colchester July 16, 2018 7:02 a.m. ET 2 COMMENTS LONDON— Barclays BCS +1.62% PLC is considering doubling down on America. Under pressure from activist shareholder Sherborne Investors, the British bank is scrambling to boost its stagnant share price. One path forward: Chief Executive Jes Staley is weighing whether to scale up Barclays’s online U.S. retail bank, according to people familiar with the matter. Other moves could include rolling out its dominant U.K. payments platform stateside. The bank, which is locked in a grinding battle with giants like J.P. Morgan in investment banking, is also putting more capital behind its U.S. credit card operations, one of the people says. Bank Race Price-to-book value Source: FactSet Barclays HSBC JPMorgan 2014 ’15 ’16 ’17 ’18 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 The lucrative U.S. market has long drawn European banks trying to expand out of saturated home economies. But they also have a history of getting burned. Some of the biggest European lenders were brought to near collapse by exposure to the U.S. housing market. Several retreated after the financial crisis, unable to compete with U.S. rivals while also dealing with sovereign debt crises at home. The banks that stuck it out are trying to expand again to take advantage of robust U.S. growth. The Netherlands’s ING Groep NV grew its headcount at its U.S. investment bank by 10% last year, while HSBC Holdings PLC is increasing its unsecured lending business in the U.S. “Given competition, you have to continue investing in the U.S. to stay relevant on a global scale,” says Magdalena Stoklosa, head of European bank research at Morgan Stanley . Credit Is Due Credit card loan charge-off rate, seasonallyadjusted, among top 100 banks by assets Source: Federal Reserve Note: Shaded areas show recessions. % RECESSION 1990 2000 ’10 0 2 4 6 8 10 12 London-based Barclays went deeper than most into the U.S. during the crisis, snapping up a chunk of Lehman Brothers during its collapse. It has since launched an online lender in Delaware which collects term deposits to fund its large U.S. credit card business. Last year the U.S. accounted for 40% of the bank’s profits and about a fifth of the bank’s capital is allocated to the country. Some investors wonder whether the bank has enough scale in America where it is dwarfed by U.S. rivals. Meanwhile back in the U.K, fears over Brexit’s impact on the British economy continue to weigh on the bank. Its shares trade for 60 % of its book value, compared with 160% for the likes of JP Morgan. Mr. Staley has repeatedly said that Barclays is committed to remaining focused on the U.K. economy. However, Brexit has tempered executives’ risk appetite in the U.K. and growth at its highly profitable British credit card franchise has slowed as the bank’s market share peaks. Barclays executives are debating whether greater exposure to the U.S. retail market could both generate revenues and fund its U.S. operations more efficiently. The bank recently passed U.S. stress tests and has sucked in $12.5 billion of deposits to its Delaware operation. One idea is to build a U.S. checking account offering, according to people familiar with the matter. A final decision hasn’t been made and timing remains unclear. Barclays executives reason they can run a profitable online banking operation with only a small slice of the U.S. market. One risk is that Barclays invests just as the consumer lending cycle turns. Despite a strong economy, for instance, banks have suffered from rising defaults among U.S. credit card holders. Credit card charge-offs among top banks hit 3.65% in the first quarter, according to the Federal Reserve, the highest level since 2012. BARCLAYS U.S. IN NUMBERS 40% of group profits 30% of revenues 10,045 employees out of 79,900 Activist Sherborne Investors wants to see capital moved away from Barclays’s investment bank trading operations. Sherborne took a 5% stake in Barclays earlier this year but has so far not made public its plan to shake up the bank. Barclays’s management says the bank will generate returns equal to its cost of equity by 2020. The bank said it would undertake share buybacks at an unspecified time. So capital for any planned expansion is tight. It isn’t the first time that Barclays has eyed a bigger U.S. retail banking presence. Around a decade ago Barclays executives had considered whether to buy a U.S. retail bank. This this was shelved in part because it made no sense buying a lender with an extensive number of bricks and mortar branches. Currently, the bank isn’t looking at any big U.S. deals, according to a person familiar with the matter. Write to Max Colchester at max.colchester@wsj.com Recommended Videos hxxps://m.wsj.net/video/20180713/071518ptech/071518ptech_115x65.jpg How to Use Your Handwriting in a Digital World hxxps://m.wsj.net/video/20180713/071318seib/071318seib_115x65.jpg What to Know About the Russia Indictment hxxps://m.wsj.net/video/20180715/071218lawncare/071218lawncare_115x65.jpg One Man's Obsession With Lawn Care hxxps://m.wsj.net/video/20180713/071318rosenstein/071318rosenstein_115x65.jpg Mueller Probe Indicts 12 Russians for 2016 Election Hacking hxxps://m.wsj.net/video/20180304/030518workingsmarter2/030518workingsmarter2_115x65.jpg How to Get a Job: Advice From Extremely Successful People Most Popular Articles Inside Israel’s Raid to Seize Nuclear Documents in Iran Inside Israel’s Raid to Seize Nuclear Documents in Iran Appearing With Putin, Trump Questions Finding of Russia’s 2016 Meddling Appearing With Putin, Trump Questions Finding of Russia’s 2016 Meddling Will Bitcoin Save Us From Google? Opinion: Will Bitcoin Save Us From Google? California’s Mortgage Fraud Opinion: California’s Mortgage Fraud The Problem With Innovation: Big Companies Are Hogging All the Gains The Problem With Innovation: Big Companies Are Hogging All the Gains Read Full Thread Follow Reply
09/5/2018 16:00	bernie37: All publicly traded companies have a set number of shares that are outstanding. A stock split is a decision by a company's board of directors to increase the number of shares that are outstanding by issuing more shares to current shareholders. For example, in a 2-for-1 stock split, an additional share is given for each share held by a shareholder. So, if a company had 10 million shares outstanding before the split, it will have 20 million shares outstanding after a 2-for-1 split. A stock's price is also affected by a stock split. After a split, the stock price will be reduced since the number of shares outstanding has increased. In the example of a 2-for-1 split, the share price will be halved. Thus, although the number of outstanding shares and the price change, the market capitalization remains constant. [ Stock splits can be a confusing concept for those new to the stock market, but a failure to understand them can have a significant impact on your returns. If you're new to these terms and would like to learn more about becoming a trader, check out Investopedia's Trading for Beginners Course. You'll learn everything from basic terminology to building your own trading system with position sizing and risk management techniques built-in in over five hours of on-demand video, exercises, and interactive content. ] Why Do Stocks Split? A stock split is usually done by companies that have seen their share price increase to levels that are either too high or are beyond the price levels of similar companies in their sector. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company has not changed. This has the practical effect of increasing liquidity in the stock. When a stock splits, it can also result in a share price increase following a decrease immediately after the split. Since many small investors think the stock is now more affordable and buy the stock, they end up boosting demand and drive up prices. Another reason for the price increase is that a stock split provides a signal to the market that the company's share price has been increasing and people assume this growth will continue in the future, and again, lift demand and prices. In June 2014, Apple Inc. split its shares 7-for-1 to make it more accessible to a larger number of investors. Right before the split, each share was trading at $645.57. After the split, the price per share at market open was $92.70, which is approximately 645.57 ÷ 7. Existing shareholders were also given six additional shares for each share owned, so an investor who owned 1,000 shares of AAPL pre-split would have 7,000 shares post-split. Apple's outstanding shares increased from 861 million to 6 billion shares, however, the market cap remained largely unchanged at $556 billion. The day after the stock split, the price had increased to a high of $95.05 to reflect the increased demand from the lower stock price. Read Full Thread Follow Reply
09/4/2018 08:42	portside1: diku 8 Apr '18 - 18:35 - 125283 of 125289 0 0 0 porty...didn't mack the knife or whatever his name is say Barc share price was going to double in price when the price was around 240p!!?...what happened to that???...just talk up their own egos to support their cause as we are all mugs!!... no diku it was 262p Read Full Thread Follow Reply
08/4/2018 18:35	diku: porty...didn't mack the knife or whatever his name is say Barc share price was going to double in price when the price was around 240p!!?...what happened to that???...just talk up their own egos to support their cause as we are all mugs!!... Read Full Thread Follow Reply
21/2/2018 16:38	bernie37: Barclays PLC (LSE:BARC) is currently trading at a trailing P/E of 16.9x, which is higher than the industry average of 16x. While BARC might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. In this article, I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio. View our latest analysis for Barclays What you need to know about the P/E ratio LSE:BARC PE PEG Gauge Feb 21st 18 LSE:BARC PE PEG Gauge Feb 21st 18 More A common ratio used for relative valuation is the P/E ratio. By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each pound of the company’s earnings. P/E Calculation for BARC Price-Earnings Ratio = Price per share ÷ Earnings per share BARC Price-Earnings Ratio = £2.01 ÷ £0.119 = 16.9x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. We want to compare the stock’s P/E ratio to the average of companies that have similar characteristics as BARC, such as size and country of operation. A common peer group is companies that exist in the same industry, which is what I use. At 16.9x, BARC’s P/E is higher than its industry peers (16x). This implies that investors are overvaluing each dollar of BARC’s earnings. Therefore, according to this analysis, BARC is an over-priced stock. Assumptions to watch out for While our conclusion might prompt you to sell your BARC shares immediately, there are two important assumptions you should be aware of. Firstly, our peer group contains companies that are similar to BARC. If this isn’t the case, the difference in P/E could be due to other factors. For example, if you are comparing lower risk firms with BARC, then its P/E would naturally be lower than its peers, as investors would value those with lower risk at a higher price. The second assumption that must hold true is that the stocks we are comparing BARC to are fairly valued by the market. If this is violated, BARC’s P/E may be lower than its peers as they are actually overvalued by investors. Read Full Thread Follow Reply
14/2/2018 19:30	bernie37: Tip Update: Buy at 194p Tip style VALUE Risk rating MEDIUM Timescale MEDIUM TERM Our previous tip We said BUY at 237.6p on 08 Jan 2015 Tip performance to date -18% By Emma Powell The performance of Barclays’ (BARC) shares during the past 12 months has been conspicuously poor compared with its UK-listed peers. Shareholders would have been glad, then, that news the Serious Fraud Office (SFO) is extending the scope of charges relating to the bank’s 2008 capital raising failed to disturb its share price. BARC:LSE Barclays PLC 1mth Today change 1.40% Price (GBP) 195.70 The SFO has brought a charge of unlawful financial assistance against Barclays Bank over the $3bn loan Barclays made to the state of Qatar in November 2008. That was around the time the banking group’s second fundraising – aimed at preventing a government bailout – was closing. UK companies are generally disallowed from lending money to third-parties if the purpose is to buy shares in that company. The SFO had already charged Barclays PLC with two counts of conspiring to commit fraud by false representations relating to two so-called advisory services agreements with Qatar Holding – part of the state’s sovereign wealth fund – in June and October 2008, and a further count of unlawful financial assistance relating to the November loan. Barclays Bank and its parent company said they intend to defend the respective charges brought against them and that they don't “expect there to be an impact on its ability to serve its customers and clients as a consequence of the charge having been brought”. Investor reaction may have been muted but the charge levelled against the Barclays Bank is concerning, given that that subsidiary must pass the “fit and proper” test to keep its banking licence. Still, the UK lender is no stranger to litigation. More perturbing for shareholders, Barclays – along with two of its executives – is also being sued by the US Department of Justice over allegedly fraudulent mortgage-backed securities between 2005 and 2007. That’s a complaint that Barclays has rejected as "disconnected from the facts", and said it would "vigorously defend". Investec analyst Ian Gordon has accounted for a settlement of $2bn in his 2018 forecasts, to be taken as a provision that year. But legal disputes are not the only matter holding down the share price. The weak performance of the investment banking operations during the past three-quarters is helping to prove the naysayers right. Historically low levels of volatility in 2017 have held down the business’s returns on average equity (ROAE), which declined to 8.4 per cent during the first nine months, yet accounted for almost half its allocated tangible equity. That’s compared with a ROAE of 9.4 per cent by retail-focused Barclays UK – such is the high-cost risk of investment banking. Analysts expect fourth quarter investment banking income to decline year-on year. Given the lacklustre growth of net interest income on the retail side, plus the underperformance of its investment bank, management’s guidance for returns on tangible equity – of north of 10 per cent by 2020 and 9 per cent by 2019 (excluding litigation and conduct costs) – seem like a stretch. IC View It may seem that we are siding with the bears when it comes to investing in Barclays. In fact, we reckon the buy case is arguably the strongest it has been in almost three years. Much progress has been made improving its common equity tier one ratio, which stood at 13.1 per cent at the end September, up from 11.6 per cent the previous year. That’s been driven by reducing its risk-weighted assets, but it’s the main reason most analysts are forecasting a return to dividend growth in 2018. Shore Capital estimates a DPS of 7p in 2018. At 194p, that would give the shares a decent potential yield of 3.6 per cent. They’re trading at of 0.65 times 2018 forecast net tangible assets – the lowest of all the major five lenders and only a slight premium to when the shares hit a five-year low following the EU referendum. That also prices in the risk it won’t achieve its 2019 targets. Buy. Last IC view: Buy, 181p, 26 Oct 2017 Read Full Thread Follow Reply
23/10/2017 20:04	bernie37: 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 Read Full Thread Follow Reply
03/10/2017 12:50	portside1: Barclays Share News (BARC) 3 Follow BARC Share Name Share Symbol Market Type Share ISIN Share Description Barclays LSE:BARC London Ordinary Share GB0031348658 ORD 25P Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade +0.00p +0.00% 192.70p 192.35p 192.45p - - - 0 06:30:53 Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m) Banks 21,451.0 3,230.0 10.4 18.5 32,810.09 Print Alert Barclays PLC Director/PDMR Shareholding 02/10/2017 5:26pm UK Regulatory (RNS & others) Barclays (LSE:BARC) Intraday Stock Chart Today : Tuesday 3 October 2017 TIDMBARC RNS Number : 4775S Barclays PLC 02 October 2017 2 October 2017 Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them Barclays PLC (the "Company") announces the following transactions by persons discharging managerial responsibility ("PDMRs") in ordinary shares of the Company with a nominal value of 25 pence each ("Shares") of which it was notified on 29 September: The trustee of the Barclays Group (PSP) Employees' Benefit Trust delivered Shares to the individuals below. The Shares delivered are in respect of : 1. the quarterly payment of the Share element of the individual's fixed remuneration for the three month period to 30 September 2017. The Shares are subject to a holding period with restrictions lifting in equal tranches over five years (20% each year); and 2. the release of Shares subject to an award made under Schedule 1 to the Barclays Group Share Value Plan. The number of Shares received by PDMRs and the transaction price of those Shares are as follows: Read Full Thread Follow Reply
24/2/2017 16:27	bernie37: Barclays PLC and Barclays Africa agree separation terms Thursday, 23 February 2017 Barclays Africa Group today announced that it has agreed terms for operational separation with UK-based Barclays PLC, which is reducing its shareholding in Barclays Africa. The agreement is expected to unlock opportunities for Barclays Africa as an independent pan African bank. UK-based Barclays PLC announced last March that it intends to sell the majority of its shareholding in Barclays Africa over a period of two to three years. Barclays PLC currently owns 50.1% of Barclays Africa. Following the reduction of Barclays PLC’s shareholding below the 50% mark, Barclays Africa will be able to continue using the Barclays brand at its operations outside of South Africa for three years. Barclays Africa will receive certain services from Barclays PLC on arms’ length basis for a transitional period, typically up to three years. “It is a good outcome that enables us to complete the separation, and to provide continuity and improved service for our customers,” holds Maria Ramos, chief executive, Barclays Africa. An important feature of discussions has been the provision for a broad-based black economic empowerment scheme. While the full details are still under consideration, we are pleased to announce that Barclays PLC has agreed to contribute an amount equivalent to 1.5% of Barclays Africa’s market capitalisation, or R2.1 billion (based on a Barclays Africa’s share price of R168.69 on 31 December 2016) towards the establishment of such a scheme. “Separation has a number of implications for our business,” said Ramos. “It gives us the opportunity to unlock the potential to do things differently and build energy and momentum for our future as a pan-African organisation.” Alongside a black economic empowerment scheme, Barclays Africa also wants to create an equity proposition for our staff in the next 12 to 18 months. This will give our people the opportunity to benefit from share ownership, and to share in the future growth of our business. Barclays PLC has submitted an application to the South African Reserve Bank for approval to reduce its shareholding in Barclays Africa Group to below 50%. The application, which also requires the approval of the Minister of Finance, includes the terms of the separation payments and transitional services arrangements, which have been agreed between Barclays PLC and Barclays Africa. The agreement provides for contributions by Barclays PLC totalling GBP765 million (R12.8 billion based on 31 Dec 2016 exchange rate) primarily to fund the investments required for Barclays Africa Group to separate from Barclays PLC as follows: £515m for investments required in technology, rebranding and other separation projects; £55m to cover separation related expenses, of which £27.5m was received in December 2016; and £195m to terminate the existing service level agreement between Barclays and BAGL, relating to the Rest of Africa operations acquired in 2013. The expectation is that the financial contributions will neutralise the capital and cash flow impact of separation investments on the Group over time. Read Full Thread Follow Reply
17/2/2017 16:09	bernie37: That’s the view on banks by Schroder Income fund’s co-manager, Kevin Murphy. But how accurate an assertion is that, given the much maligned recent history of the sector? Murphy was speaking after adding Standard Chartered to his portfolio, which already includes Barclays, HSBC, Royal Bank of Scotland (RBS) and Lloyds Banking Group. It would also appear that TD Direct Investing customers are seeking more exposure to banks; our latest data shows an increase in trades in banking stocks of 29% during 2016. So, ahead of next week’s earnings calendar, which will be dominated by the largest UK retail banks Lloyds, Barclays, RBS and HSBC, we wanted to assess whether the banking sector is returning to former glories. Bringing back dividends Before the financial crisis of 2008 UK banks were among the best places to invest for solid dividend growth. 10 years ago, banks provided almost a quarter of all dividends in the UK market. Following the financial crisis, banks went through the wringer; not only did their share prices plummet, but many were forced to suspend dividend payments too, most notably Lloyds and RBS. Since then UK banks have been rebuilding their balance sheets and are now returning to form. The health of these businesses is reflected in their dividends, with HSBC, Lloyds and Barclays now paying a good level of dividend yield. In 2015, Lloyds announced its first dividend since the government stepped in to bail it out in 2008. Standard Chartered, meanwhile, is likely to be among those companies which recommence dividend distributions this year. Bank/Index Dividend Yield % 1 Year Share Price Return,% 2 Year Share Price Return,% 3 Year Share Price Return,% 4 Year Share Price Return,% 5 Year Share Price Return,% Major banks HSBC Holdings 5.3 48.4 48.4 29.5 20.0 70.6 Lloyds Banking Group 3.5 3.6 -6.2 -17.0% 33.9 125.8 Barclays 0.8 21.4 -1.0 -12.6 -12.3 28.0 Royal Bank of Scotland -12.2 -38.8 -34.8 -35.4 -16.7 Standard Chartered 64.4 -4.1 -28.5 -45.3 -38.0 Challenger Banks Virgin Money Holdings 1.4 -0.1 1.3 Aldermore Group 1.2 Shawbrook Group -16.6 FTSE All Share Banks Index 3.7 20.1 14.5 22.6 35.0 57.0 FTSE All Share Index 3.7 32.0 9.2 3.0 1.0 39.9 Source: Morningstar Direct. As at 31 January 2017. Note Metro Bank and Clydesdale Bank have been listed on the LSE for less than a year. Past performance is not a reliable indicator of future returns. Note that current yield may not reflect historical yields. Over the last year (to the end of January 2017) the share prices of all these banks, bar RBS, have risen, with HSBC, Barclays and Standard Chartered showing double digit growth. Lloyds’ share price, though, has come under pressure from the government selling down its stake, while RBS was hit by failing the Bank of England’s stress tests and mis-selling fines. According to Capita’s UK Dividend Monitor report in January 2017, £10.4bn was paid out in dividends by the banks in 2016, mainly HSBC. HSBC, the UK’s second largest payer, distributed £7.5bn, up 17% year-on-year, thanks in no small part to weaker sterling. Special dividends were also part of the story. Strong profit growth at Lloyds prompted a special dividend of £360m. HSBC has been in the top three dividend payers in the FTSE All Share index every year since 2008. An attractive long-term investment opportunity While ratings agency Fitch raised concerns about the banking sector in the immediate aftermath of the decision to leave the European Union last June, banks’ strong balance sheets should allow them to cope with moderate negative shocks going forward. Banks remain an attractive investment opportunity in the long term. They will be beneficiaries when interest rates rise from their historic lows. While the timescale for rate rises remains uncertain, an upwards trajectory seems the most likely outcome which will allow banks to increase their margins. Their profitability will also be boosted by increasing inflation. In addition banks continue to focus on cost cutting to deal with economic and structural challenges. UK fund managers believe banks are back on track, and some have been adding to their positions in anticipation of higher dividends in the future. Alistair Mundy, manager of Investec UK Special Situations has been a long standing holder of UK banks including HSBC, Lloyds, Barclays and RBS. The fund currently has approximately a 25% allocation to the sector. Being a contrarian investor, Mundy was attracted to banking stocks at a time when they were deeply out of favour. “In 2007 everyone loved RBS. They said it would keep growing and making acquisitions and that it was run by a genius. It turned out to be run by a lunatic rather than a genius, and it didn’t continue to grow.” He continues: “People say there are regulatory problems, but even the Bank of England has said we are at peak regulation. The fines and litigation will go away. People are also talking about the challenger banks, although many people are too lazy to change banks so the large banks will continue to make money from them. UK banks are priced like its 2008.” He believes, however, that the sector as a whole is now in much better shape, and this is yet to be fully appreciated by markets. Other funds on our Recommended Funds list with a significant allocation to banks include Schroder Income, Majedie UK Equity, JOHCM UK Dynamic and Old Mutual UK Alpha. Don’t forget about the challenger banks Despite Mundy’s lack of concern, a number of challenger banks, which are making use of leading edge technology, could be positioned to disrupt the banking sector. Research broker Liberum highlights challenger banks will continue to deliver growth and earnings, and could be poised to threaten the status quo. TD Direct Investing customers have also picked up on the challenger bank story, with trades skyrocketing by 188% over the course of last year. If you’re keen to get exposure to UK banks take a look at each of the funds below. Or you could visit our stocks and shares page to find all the UK banks. - Read Full Thread Follow Reply

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