BCS Barclays PLC

   By Elena Vardon 
 

Shares in Barclays fell around 5% at market open Thursday after the British bank reported second-quarter profit ahead of market views but revenue that missed expectations, and lowered net interest margin guidance for the year.

At 0719 GMT, shares were down 8.12 pence at 155.94 pence.

The lender said it now sees net interest margin for Barclays U.K. in 2023 of less than 3.20%--from more than 3.20% previously--with the current view around 3.15%.

Total income for the three months ended June 30 fell to 6.29 billion pounds ($8.13 billion) from GBP6.71 billion a year earlier, missing consensus' estimated GBP6.53 billion. Barclays said net interest income--the difference between what banks earn on loans and pay clients for deposits--accounted for GBP3.27 billion of total income, from GBP2.42 billion last year.

Its pretax profit was GBP1.96 billion compared with GBP1.50 billion a year earlier and GBP1.91 billion estimated by consensus, driven by a significantly lighter-than-expected credit impairment charge.

The FTSE 100-listed group's net attributable profit rose to GBP1.33 billion from GBP1.07 billion. Analysts polled had expected GBP1.24 billion.

Its common equity Tier 1 ratio--a key measure of balance-sheet strength--was 13.8%, as expected.

The board declared an interim dividend of 2.7 pence a share, in line with views and up from 2.25 pence a year prior.

Barclays said it intends to launch a GBP750 million share buyback, while analysts had expected a GBP575 million program.

"Looking forward we are very confident of meeting our targets for the full year," Chief Executive C. S. Venkatakrishnan said.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

July 27, 2023 03:49 ET (07:49 GMT)

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