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Why Barclays Is Up 43% Since This Time Last Year

By Douglas Adams - Apr 15, 2013 at 9:40AM

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Barclays has issued a series of encouraging statements this year.

LONDON -- Barclays (BARC -1.24%) (BCS 0.97%) has advanced 34% to 299 pence during the last 12 months, making the share one of the best performers in the FTSE 100.

The bank, which operates in more than 50 countries with nearly 150,000 employees, seems to have impressed investors with a series of encouraging statements.

During July, Barclays announced half-year results for 2012 that showed adjusted profits before tax gaining 13% to 4.2 billion pounds alongside an adjusted return on average shareholder equity of 9.9%.

The half-year results also revealed what the bank called a "resilient" Tier 1 capital ratio of 10.9%, down from 11% at at December 2011.

During October, Barclays' third-quarter statement revealed a further improvement to adjusted profits before tax, which were up 18% to almost 6 billion pounds, as well as a 4% reduction in operating expenses to less than 14 billion pounds.

Then in January, Barclays' full-year statement revealed a rise for both basic earnings per share and dividends per share, at a rate of 24.5% to 34.5 pence, and 8.3% to 6.5 pence, respectively.

Antony Jenkins, Chief Executive for Barclays, said:

We committed last year to a journey to bring down our compensation ratio and have made good progress this year, with the Group compensation to net income ratio declining to 38% (2011: 42%). While this is progress, not the destination, we believe a ratio in the mid-30s is a sustainable position in the medium term which will ensure that we can continue to pay our people competitively for performance while also enabling us to deliver a greater share of the income we generate to shareholders.

Jenkins affirmed that, under his leadership, Barclays would become the "Go-To bank" for shareholders by building a culture embedded with five core values: respect, integrity, service, excellence, and stewardship.

Barclays' first-quarter update for 2013 will be published on 24 April, which may reveal further positive news that can encourage investors.

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