On Thursday, January 7th, 2021, a skyscraper at Churchill Place, one of the Barclays PLC headquarters, in Canary Wharf, London, UK.
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British Bank Barclays on Tuesday announced a £1 billion ($1.333 billion) share buyback as market volatility boosted investment bank revenues.
Pre-tax profit is estimated at £2.5 billion ($3.34 billion) in the second quarter, while the average LSEG forecast was £2.23 billion. Group revenue met analyst forecast of £7.2 billion.
Other highlights:
Earnings per share reached 14% to 13.9% from the capital ratio of 8.3p.CET1, a measure of bank solvency, up 13.9% in the March quarter, up 13.9%, up 13.9%, up 13.9% in the second quarter, reaching 186 million pounds.
Investors are monitoring the performance of lenders’ sharpened investment banking units, which recorded revenue of £3.3 billion in the three months ending June, increasing 10% year-on-year.
The bank is the latest to report higher revenues raised by a quarter market transaction, including turbulent fallout from US President Donald Trump’s tariff policy announced in April. The US dollar is struggling with a sharp decline as global stocks plummeted before a massive rebound, with Europe recovering ahead of the US currency market.
Deutsche Bank last week defeated its profit expectations supported by strong performance in bonds and currencies. Stateside, JPMorgan Chase and Morgan Stanley are among those reporting higher trading revenues.
The investment banking sector is the traditional backbone of Barclays’ revenues and is the cost-cutting target under CEO CS Venkatakrishnan, announced in February 2024. In recent months, there have been plans to cut plans to cut more than 200 jobs in the employment of former Deutsche Numis exec Alex Ham, among his employment as global chair.
In addition to the challenges, pending changes to US capital leverage rules could unlock further competitive national sides that have gained a major presence since Barclays acquired Lehman Brothers investment banks and capital market companies.
Domestic, Barclays faces the changing landscape of British banks. There, Spanish Titan Santander doubled its UK presence and acquired British high street lender TSB from Sabadell from early July, with investors seeing a strategic tack change from Natwest, which returned to private ownership at the end of May.
This fast news article has been updated.
