Barclays Bank (BARC)

[Stan]

A bit of talk about Barclays might be able to capitalise on the demise of DB.

So the SP may get a lift tomorrow on the back of the speculation.

What do people think of Barclays possibility of gaining some investment work.

[Alaric]

A bit of talk about Barclays might be able to capitalise on the demise of DB.

DB meaning?

[Pendrainllwyn]

Deutsche Bank

Personally, I think there are other Investment Banks better placed to take advantage of Deutsche Bank's pull back than Barclays.

Pendrainllwyn

[PinkDalek]

DB meaning?

Deutsche Bank:

https://www.db.com/newsroom_news/2019/d ... -11537.htm

and

https://www.db.com/newsroom_news/2019/d ... -11538.htm

As part of its ongoing commitment to improve long-term profitability and returns to shareholders, Deutsche Bank’s Management Board announces a series of measures to restructure the bank’s operations. ...

https://www.bbc.co.uk/news/business-48898234

Up to 20,000 jobs could be axed at Deutsche Bank in a radical reorganisation of Germany's biggest bank.

The investment bank is expected to be particularly hard hit, with many of the cuts set to affect London and New York. ...

[Breelander]

Half-year Report

Performance Highlights

Resilient performance with Group return on tangible equity of 9.4%1 and an increased half year dividend of 3.0p per share

https://www.investegate.co.uk/barclays- ... 700114636H

[scrumpyjack]

and effectively forecasting a full year total dividend of 9p, as I read it. They say the final is expected normally to be twice the interim.

[ADrunkenMarcus]

and effectively forecasting a full year total dividend of 9p, as I read it. They say the final is expected normally to be twice the interim.

Yes, on 6 August 2019 Tushar Mozaria, Finance Director said:

On capital levels, we’re pleased with the outcome at the end of the second quarter, at 13.4%, which is comfortably above our stated objective of around 13%. Of course, you’ll all be familiar with the interim dividend of 3p that we declared, which in a normal year should represent about a third of the full year dividend. Again, looking at Jes’ history – he obviously cut the dividend when he first got here, so in the first full year he was here we had a 3p full year dividend. That was increased to 6.5p last year, and if you just do the maths, it should be somewhere around 9p for the end of this year, assuming this year is a normal year.

On the basis of a 137p share price and a 9p dividend, Barclays is now yielding 6.6% and is a high yield stock!

I sold out in January 2018. The share price was then 201p. Having been 242p in 1998! Phew.

Best wishes,

Mark.

[PinkDalek]

Yes, from the link provided by Bree:

Reiterating capital returns policy, incorporating a progressive ordinary dividend, supplemented by share buybacks as and when appropriate. Dividends will continue to be paid semi-annually, with the half year dividend expected to represent, under normal circumstances, around one-third of the total dividend for the year and This all puts us in a position to continue to increase the return of capital to shareholders by declaring a half year dividend of 3 pence. The half year dividend is around a third of what we expect to pay in total in a given year under normal circumstances. This increase in ordinary dividend reflects the confidence that the Board and management have in the sustainable earnings generation of our business.

The questions remains, will this be a normal year?

[Breelander]

Barclays passes the 2019 Bank of England stress test

https://www.investegate.co.uk/barclays- ... 30510616X/

[johnhemming]

A bit more transparency on non transitional loss recognition than Lloyds, but a useful point about the setting of thresholds.

[Breelander]

The banking season started yesterday with Annual Results for Barclays.

Group return on tangible equity (RoTE) improved year-on-year to 9.0%1 (2018: 8.5%), in line with the 2019 target. This represents the third consecutive year of improved year-on-year RoTE performance for the Group

The Group continues to target >10% RoTE1. However, given global macroeconomic uncertainty and the current low interest rate environment, it has become more challenging to achieve this in 2020. Notwithstanding these headwinds, the Group believes it can achieve a meaningful improvement in returns in 2020

Group statutory profit before tax was £4.4bn (2018: £3.5bn) and, excluding litigation and conduct, was £6.2bn (2018: £5.7bn). Statutory earnings per share (EPS) were 14.3p (2018: 9.4p) and, excluding litigation and conduct were 24.4p (2018: 21.9p)

Common equity tier 1 (CET1) ratio was 13.8%, with the Group target remaining c.13.5%

Delivering attractive capital returns to shareholders remains a key priority, whilst also continuing to improve RoTE on a sustainable basis and investing in business growth

It is Barclays' policy to declare and pay dividends on a semi-annual basis. The remaining dividend for 2019 of 6.0p per ordinary share will be paid on 3 April 2020 to shareholders on the Share Registrar on 28 February 2020 following the 3.0p half year dividend paid on 23 September 2019 and accounted for as a distribution of retained earnings in the year ended 31 December 2019.

https://www.investegate.co.uk/barclays- ... 700098369C

[idpickering]

Q3 2020 Results Announcement

Group income of £16.8bn up 3% versus prior year

Barclays International income of £12.4bn, up 11% versus prior year

Corporate and Investment Bank (CIB) income of £9.8bn, up 24% driven by strong Markets income reflecting wider spreads and market share gains3

Consumer, Cards and Payments (CC&P) income of £2.6bn, down 21% driven by lower balances, margin compression and reduced payments activity

Barclays UK income of £4.7bn down 12% versus prior year reflecting lower interest rates and unsecured lending balances, COVID-19 customer support actions and the removal of certain fees

And later;

The Board recognises the importance of capital returns to shareholders and will provide an update on its policy and dividends at FY20 results

https://www.investegate.co.uk/barclays- ... 00049798C/

[Breelander]

Annual results

Given the strength of our business, we have decided the time is right to resume capital distributions. We have today announced a total payout equivalent to 5p per share, comprising a 1p 2020 full year dividend and the intention to initiate a share buyback of up to £700m. We expect to comment further on capital distributions when appropriate.

https://www.investegate.co.uk/barclays- ... 00034969P/

Annual financial report

https://www.investegate.co.uk/barclays- ... 00114965P/

[scrumpyjack]

or they could have said "The board recognises the importance of dividends to shareholders and bonuses to management and is paying £170m in dividends and £1,504m in management bonuses, reflecting their relative importance."

Funny they didn't present it like that

Still the BoE probably limited them to a 1p divi

[88V8]

or they could have said "The board recognises the importance of dividends to shareholders and bonuses to management and is paying £170m in dividends and £1,504m in management bonuses, reflecting their relative importance."
Funny they didn't present it like that

You forgot the £700m they're spending to prop up the Executive Share Incentive scheme

V8

[scrumpyjack]

or they could have said "The board recognises the importance of dividends to shareholders and bonuses to management and is paying £170m in dividends and £1,504m in management bonuses, reflecting their relative importance."
Funny they didn't present it like that

You forgot the £700m they're spending to prop up the Executive Share Incentive scheme

V8

Quite, good to set up a willing buyer to take all the free shares management want to dump at the first opportunity!

[dealtn]

or they could have said "The board recognises the importance of dividends to shareholders and bonuses to management and is paying £170m in dividends and £1,504m in management bonuses, reflecting their relative importance."
Funny they didn't present it like that

You forgot the £700m they're spending to prop up the Executive Share Incentive scheme

V8

Quite, good to set up a willing buyer to take all the free shares management want to dump at the first opportunity!

Bonuses are up 6%.

Where does it say bonuses are only available to managers? Do you know the breakdown?

Where can you see it possible that management are able, let alone wanting to "dump"? The "first opportunity" is a way of saying they have to hold for a minimum of many years, and likely to be after the share buy back.

It comes across that you have a ready formed opinion rather than an open mind, which doesn't do you much credit in your analysis of the company news.

[scrumpyjack]

We all have our prejudices, and previous bank management behaviour has earned it in spades, IMO. They have a lot to do to earn back trust, so a little sceptical humour at their expense is trivial.

If you look at the comments on the BBC report of Barclays results, they are in a different league to my mild knocks!

[dealtn]

We all have our prejudices, and previous bank management behaviour has earned it in spades, IMO. They have a lot to do to earn back trust, so a little sceptical humour at their expense is trivial.

If you look at the comments on the BBC report of Barclays results, they are in a different league to my mild knocks!

I suspect the previous management behaviour you refer to may be from before this management team was in place. Without elucidation that is only a guess though.

Jes Staley the CEO was appointed 5 years ago. Nigel Higgins, the Chariman has been in that role about a year. Tushar Morzaria has been there around 7 years.

What is the issue you have with the Board and their behaviour?

[scrumpyjack]

We all have our prejudices, and previous bank management behaviour has earned it in spades, IMO. They have a lot to do to earn back trust, so a little sceptical humour at their expense is trivial.

If you look at the comments on the BBC report of Barclays results, they are in a different league to my mild knocks!

I suspect the previous management behaviour you refer to may be from before this management team was in place. Without elucidation that is only a guess though.

Jes Staley the CEO was appointed 5 years ago. Nigel Higgins, the Chariman has been in that role about a year. Tushar Morzaria has been there around 7 years.

What is the issue you have with the Board and their behaviour?

It is banks generally, particularly RBS, HBOS/Lloyds etc. But the same poor culture to some extent existed in Barclays. You only have to look at the attitudes demonstrated in the evidence in the recent Amanda Staveley case. There were obviously good guys and bad guys in all the banks. With Barclays Varley seems to have been a principled man, but Roger Jenkins – ugh. The press seemed to think that Bob Diamond at Barclays was virtually forced out by the BoE.

At RBS Fred Goodwin epitomised what was wrong and look at the well documented appalling behaviour at HBOS/Lloyds forcing small business customers into insolvency and then ripping them off.

I have personal experience of very unprincipled behaviour at RBS by junior management. Changing the MD does not change middle management – corporate culture is very hard to change.

Lastly I should next month get another payment from the RBS Rights Issue litigation, where it was clear the prospectus was fra***** and RBS had to pay £200m in compensation to those shareholders like me who sued them.

So as I say, banks have a long way to go to earn back trust and it isn’t enough to say Jes Staley, for example, has not done anything wrong. It takes decades to build up a good corporate ethos and reputation but only a short time to lose it.