Barclays 2Q Pretax Profit Rose Above Views, Pre-Pandemic Levels -- Update
July 28 2021 - 3:15AM
Dow Jones News
By Sabela Ojea
Barclays PLC on Wednesday reported a significant rise in pretax
profit for the second quarter, surpassing market views and
pre-pandemic levels, and said that it aims to launch another share
buyback program after resuming dividends.
The FTSE 100 bank posted a pretax profit of 2.58 billion pounds
($3.58 billion), up from GBP359 million a year earlier. Pretax
profit for the second quarter of 2019 stood at GBP1.53 billion.
Pretax profit had been expected to reach GBP1.70 billion,
according to Barclays' compiled consensus.
Barclays benefited from credit impairment releases of GBP797
million after booking charges of GBP55 million in the previous
quarter.
The U.K. lender's total income rose to GBP5.42 billion, compared
with GBP5.34 billion a year earlier. This compares with GBP5.54
billion for the second quarter of 2019. It had been expected to
generate total income of GBP5.31 billion for the latest
quarter.
The board has declared a dividend of 2.0 pence a share, higher
than the expected 1.8 pence a share, following the Bank of
England's decision to remove restrictions on limited dividend
payouts
The bank also said that it intends to initiate a further share
buyback of up to GBP500 million after having completed the latest
GBP700 million buyback in April.
The bank ended the second quarter with a common equity Tier 1
ratio --a key measure of balance-sheet strength-- of 15.1%. The
planned buyback would have an effect of 17 basis points on the CET1
ratio.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
July 28, 2021 03:01 ET (07:01 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Barclays (LSE:BARC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Barclays (LSE:BARC)
Historical Stock Chart
From Apr 2023 to Apr 2024