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Barclays PLC on Thursday said it showed ‘stability and strength’ in the recent half year with higher return on equity and an increased dividend, and it confirmed positive guidance for all of 2023. Shares were down 4.3% at 156.97 pence on Monday morning in London. The London-based consumer, business and investment bank said basic earnings per share increased 34% in the six months ended June 30 to 19.9p from 14.8p. Barclays declared a 2.70p per share dividend for the half-year, up 20% from 2.25p in first half of 2022. It also plans to launch a share buyback of up to £750 million. Back in February, Barclays had announced a share buyback of up to £500 million in February, which brought total share buybacks related to 2022 to £1.0 billion. Barclays separately on Thursday said it plans to redeem all of the $2.50 billion in 7.75% fix-rate resetting perpetual subordinated contingent convertible securities issued in August 2018. Pretax profit increased 22% during the recent half year to £4.56 billion from £3.73 billion a year before. Barclays reported a 13.2% return on tangible equity, up from 10.4% in the first half of 2022. Total income increased 2.4% to £13.52 billion from 13.20 billion, while operating expenses were reduced by 12% to £8.06 billion from £9.13 billion. ‘We have positioned Barclays carefully for this mixed macroeconomic environment and delivered a consistent performance in the second quarter,’ Chief Executive Officer CS Venkatakrishnan commented. Going forward, the bank is aiming for an RoTE of over 10%. It said it is ‘well positioned’ to achieve this following the above half-year return and due to its diversified income streams, although its guidance ‘remains sensitive to product dynamics including the trajectory of deposit balances and further macroeconomic developments’. Barclays also said its capital distribution policy will include a ‘progressive’ dividend, potentially supplemented with share buybacks. Venkatakrishnan said: ‘Through our diverse sources of income, prudent risk management, and ongoing cost discipline we have again demonstrated the stability and strength of the franchise we have built over many years. ‘This means we are able to distribute increased capital returns to shareholders, while providing targeted support to our customers and clients. Looking forward we are very confident of meeting our targets for the full year.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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