Oct 26, 2017
Barclays misses analysts’ expectations
Barclays shares fell sharply after the bank undershot analysts' expectations with a 40 per cent rise in quarterly net profits, as a sharp decline in bond and currency trading offset higher profits at its UK consumer business. Barclays shares dropped 4.2 per cent to 189p at the start of trading on Thursday, down 15 per cent since the start of this year, lagging behind its main rivals and pricing it a third below its book value. Jes Staley, chief executive, has responded to signs that shareholders are losing patience with his strategy by putting a timeframe on his target to achieve a 10 per cent return on tangible equity, promising to achieve it by 2020 and to hit 9 per cent by 2019. Peter Richardson, analyst at Berenberg, said: "Given plans to deploy more capital in this business, we continue to question this plan." He added that, with Barclays tier one capital of 13.1 per cent below expectations and revenues falling at its US credit card business, he expected slight downgrades on Barclays on Thursday. In the third quarter, return on tangible equity at the corporate and investment bank was 5.9 per cent, while the UK consumer division generated a return of 18.4 per cent and the group as a whole achieved a return of 5.1 per cent.
Related companies
Make a complaint about Barclays by viewing their customer service contacts.
