Barclays Bank shows strength In Investment Banking
British Barclays reported minor beats on the top and bottom lines due to better-than-expected investment banking performance.
Quick overview
- Barclays reported pre-tax profit of £2.7 billion, exceeding expectations of £2.49 billion.
- Group revenues reached £7.7 billion, surpassing the forecast of £7.33 billion.
- The investment banking unit's income rose by 16%, contributing to a return on tangible equity of 14% for the first quarter.
- Despite initial share price declines due to trade war concerns, Barclays' stock has recovered and is up 10% year to date.
British Barclays reported minor beats on the top and bottom lines due to better-than-expected investment banking performance.
According to LSEG, pre-tax profit for the March quarter was £2.7 billion ($3.6 billion), beating the expectation of £2.49 billion. Group revenues also surpassed expectations at £7.7 billion compared to the £7.33 billion forecast by analysts.
Income from the investment banking unit rose by 16%. Barclays’ return on tangible equity, a profitability indicator, reached 14 % for the first quarter, after hovering around 7.5% in the December quarter.
Barclays’ management of its significant exposure to U.S. markets amid Trump’s trade war has become a key concern for investors.
Barclays has had a strong foothold in the United States since purchasing Lehman Brothers’ investment banking and capital markets business for $1.75 billion.
The British lender’s U.S.-based consumer banking segment has also improved, achieving a 9.1% return on tangible equity in 2024, up from 4.1% in 2023.
Barclays’ share price plunged steeply after the White House lit the fuse on their trade war on April 2, but has recovered since then and is now up 10% year to date, in sharp contrast to the Swiss giant UBS, whose stock value is plummeting due to U.S. stronghold and domestic issues.
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