What happened

Shares of the large British bank Barclays (BCS -1.17%) are trading about 9.5% lower as of 11:24 a.m. ET today after the lender reported earnings results for the fourth quarter of 2022.

So what

Barclays reported a fourth-quarter profit equivalent to $1.6 billion on total revenue of close to $7 billion, beating analyst estimates.

However, Barclays continued to deal with litigation and conduct charges related to an error earlier in 2022 when the bank sold more securities in the U.S. than had been registered with the Securities and Exchange Commission. Barclays also dealt with rising costs related to preparing for higher future loan losses.

"Barclays has bitterly disappointed the market with its full-year numbers," Hargreaves Lansdown analyst Sophie Lund-Yates wrote in a research note. She also said investors might have been disappointed with the $600 million share repurchase plan because Barclays has an incredibly strong capital position.

Barclays also announced that it expects its cost-to-income ratio (expenses as a percentage of revenue) to be in the low 60th percentile in 2023, which is above its medium-term target of below 60%. Barclays does, however, expect to hit its medium return on tangible equity target of 10% this year.

Now what

Investors seemed to be miffed by the ongoing litigation charges, higher expenses, and potential for higher loan losses than expected. They may have also hoped for a larger repurchase plan.

But the bank does expect to hit its return targets and still trades at only half its tangible book value. Plus, by repurchasing stock at this discounted valuation, Barclays will grow tangible book value, so all in all, I still think the company is well positioned for the long term.