13 February 2025
If you are covering Barclays' Q4 results, please see the following comment from Will Howlett, financials analyst at Quilter Cheviot:
"There were no real dramas in Barclays’ Q4 results this morning, marking another quarter of progress towards its FY26 targets set out at the bank’s FY23 results. These targets include a return on tangible equity of over 12%, capping the investment bank's contribution to 50% of risk-weighted assets, and returning at least £10 billion to shareholders over three years, which is 22% of market cap. While this is good, there is currently nothing incremental to drive shares after strong performance.
"The bank's profit before tax came in 3% ahead of consensus, with stronger revenues partially offset by higher costs and loan losses. Revenue increased by 24%, supported by the acquisition of Tesco Bank, or 14% when adjusted for this. Barclays’ UK revenue was up 15%, with the net interest margin rising to 3.53%. Its investment bank also performed strongly, with revenues up 28%, reflecting a similar trend seen among its peers.
"The company’s costs were slightly higher than expected, including a £90 million provision for motor finance commissions. Loan losses were also a bit higher than anticipated.
"Ultimately, while there have been many false dawns with Barclays, its strategy update has changed the investment narrative for the company. With granular targets across divisions and a commitment to grow in higher profitability areas, Barclays is showing promising signs of progress."
