Barclays posts bumper results in Q4 return to profit
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The news: Barclays’ fourth-quarter earnings saw the British lender return to profits, validating the bank’s February 2024 strategy overhaul and capitalising on the ‘Trump bump’ trading during Q4.
The numbers: The group’s profit before tax increased by 24% to £8.1 billion ($16 billion), with a group return on tangible equity (RoTE) of 10.5% for the year.
The context: Barclays’ traders took advantage of US election volatility during the fourth quarter to achieve their best performance in over 10 years. Barclays’ equities trading revenue climbed 40% to £604 million, beating the £502 million average of analyst estimates.
The bank’s investment banking division also delivered a RoTE of 8.5% for the year, an increase on 7% in 2023. Income from the division also increased 12% to £4.3 billion.
Additionally, the bank's results were boosted by its retail division, which CEO C S Venkatakrishnan vowed to grow as part of Barclays restructuring announced in 2024. Revenue from the Barclays consumer unit, Barclays UK, climbed 46% to £2.62 billion during Q4.
"In 2024 we met our financial targets, delivering for our customers and clients, with operational and financial performance improvement driven by disciplined execution of the three-year plan," said Venkatakrishnan.
The CEO also added that the bank will distribute £10 billion of capital to shareholders by 2026, including a £1 billion share buyback, with a progressive increase in 2025 compared to 2024.
The sources: Barclays results, Bloomberg
