Barclays Bank’s UK headquarters are pictured above. Matt Crossick/PA Images via Getty Images
Barclays recently reported a fourth-quarter net loss of £111 million as it makes moves to reverse declining profits. Analysts had expected a net profit of £60.95 million for the quarter, so this news was a surprise to many. The British lender is embarking on a major restructuring program to try and turn things around.
For the full year, net attributable profit came to £4.27 billion, down from £5.023 billion in 2022 and below a consensus forecast of £4.59 billion. This decrease was significant and shows that Barclays is facing some challenges.
Despite the loss, Barclays also announced an additional share buyback of £1 billion. It will also be setting out a new three-year plan designed to further improve operational and financial performance. CEO C.S. Venkatakrishnan said in a statement that the new plan is intended to help Barclays recover from its recent losses.
Barclays’ corporate and investment bank (CIB) saw a decline in momentum in 2023, particularly in its fixed income, currency and commodities trading division. Market volatility moderated, and as a result, Barclays’ trading division was not as strong as it had been in the past.
The bank had previously warned of substantial cost-cutting charges that were coming in the fourth quarter, so this was also something to be aware of.
Overall, the news about Barclays’ financial performance is worrying, but the plan to make changes and improve operations is a positive step forward. It’s clear that Barclays is taking the necessary steps to get itself back on track, and it will be interesting to see how the new three-year plan plays out.
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