Barclays 2Q Pretax Profit Missed Views on Higher Costs — Earnings Review

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By Sabela Ojea

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Barclays PLC reported earnings for the second quarter of 2022 on Thursday. Here’s what we watched:

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PRETAX PROFIT: The UK bank posted a pretax profit for the second quarter of 1.50 billion pounds ($1.82 billion), compared with GBP2.50 billion for the same period a year earlier. Pretax profit was expected to decline to GBP1.63 billion, according to the bank’s compiled consensus.

TOTAL INCOME: The FTSE 100 listed bank’s total income increased to GBP6.71 billion from GBP5.42 billion for the prior year. Total income was anticipated to rise to GBP6.50 billion for the second quarter of 2022, taken from the bank’s compiled forecasts.


–TOTAL OPERATING EXPENSES: Barclays said total operating expenses rose to GBP5.02 billion and credit impairments to GBP200 million, up from GBP4.11 billion and GBP141 million, respectively, in the previous quarter. The lender was expected to book expenses and impairments of GBP4.60 billion and GBP281 million, respectively.

–CORPORATE AND INVESTMENT BANKING: Barclays’s Corporate and Investment Bank posted a 21% rise in total income to GBP7.97 billion and a 23% decline in pretax profit, which fell to GBP2.52 billion.

–CET 1 RATIO: The bank ended the period with a common equity Tier 1 ratio–a key measure of balance-sheet strength–of 13.6%, down from forecasts of a ratio of 13.8% and from a ratio of 15.1% as at Dec. 31.

–INTERIM DIVIDEND: The board has declared an interim dividend of 2.25 pence a share, up from 2.0 pence a year earlier. The board was expected to declare a payout to shareholders of 2.3 pence a share.

–OUTLOOK: Barclays said it now expects total operating expenses at around GBP16.7 billion for 2022, up from its previous outlook of GBP15 billion, and added that its diversified income streams position the group well for the current economic and market environment and rising interest rates.

–BUYBACK: The bank also said it intends to initiate a further buyback program of GBP500 million.

Write to Sabela Ojea at [email protected]; @sabelaojeaguix


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