Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Barclays Profits Fall 25% in Q1

LONDON -- Barclays  (LSE: BARC  ) (NYSE: BCS  )  this morning released its first-quarter results for the three months to 31 March 2013, as chief executive Antony Jenkins continued his strategic review of the high-street bank.

Adjusted pre-tax profit fell by 25% to 1.79 billion pounds in the quarter, compared to 2.40 billion pounds in the same period last year. However, of the 609 million-pound difference, 514 million pounds came from restructuring fees and, excluding a "non-recurrence of a 235 million-pound gain in Q1 12 in relation to hedges of employee share awards" as well, Barclays would have been in line to post an increase in adjusted pre-tax profits of 6%.

Around 3,700 jobs are expected to be axed in total under the restructuring program, with CEO Jenkins stating:

We set out in our Strategic Review in February our path to become the "Go-To" bank for all our stakeholders. While there remains much to do to build a stronger and more resilient Barclays, we are completely focused on executing our Transform programme and are making good early progress. 

Strategic cost management is a critical factor in delivering our commitments. We have recognised around £500m of 'costs to achieve Transform' in the first quarter, reflecting our immediate priorities to reduce our European retail branch network in order to focus on the mass-affluent segment and on repositioning our equities and investment banking operations in Asia and Europe.

Other highlights from the news included an improvement in statutory pre-tax profit, increasing from a 525 million pounds loss in 2012's first quarter to 1.54 billion pounds reported today, helped by a significant reduction in its own credit charge from 2.62 billion pounds in the same period last year to just 251 million pounds now.

Elsewhere in the interim results, management pointed toward "good momentum across the businesses" -- the Investment Bank business BarCap reported a 11% rise in pre-tax profits to 1.32 billion pounds, while Barclaycard saw a 5% improvement to 363 million pounds and Wealth and Investment Management a 20% increase to 60 million pounds. 

As expected, basic earnings per share fell back a bit to 8.1 pence in contrast to Q1 2012's 13.2 pence, but investors were largely encouraged by today's news, as shares in the high-street bank soared up 6% in early trade to reach 316 pence, before falling back a little bit. 

There's clearly more to be done -- with Jenkins expecting "a further 500 million pounds of costs to achieve Transform in 2013" -- but, stripping out the restructuring costs, I believe that generally positive noises are starting to emerge from Barclays at last.

However, if you're looking for companies outside of the banking sector that have strong potential to soar in price, then we've pinpointed our favorite growth share from elsewhere in the FTSE 100. The Motley Fool's top analysts have produced a free report in which they evaluate its finances and risks, and its growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately -- it's completely free.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2384427, ~/Articles/ArticleHandler.aspx, 9/28/2016 11:30:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 12:12 PM
BARC $166.75 Up +0.65 +0.39%
Barclays CAPS Rating: No stars
BCS $8.72 Up +0.06 +0.69%
Barclays CAPS Rating: ***