Barclays: Q2 profit down 1%

(CercleFinance.com) - On Thursday Barclays announced a limited 1% y-o-y decline in its Q2 profit, affected by a rise in its tax charge and credit impairments.


The British bank reported pre-tax profit of £1.94bn for Q2, down from the £1.96bn recorded the previous year, but above the consensus of £1.56bn.

Its operating expenses - a closely watched indicator in the sector - rose by 1% to £4bn, reflecting investments aimed at revitalising growth.

Its CET1 capital ratio stood at 13.6%, down 0.1 point quarter-on-quarter and below the consensus of 13.8%.

Barclays announces the payment of an interim dividend of 2.9 pence per share, together with a share buyback of up to £750m, corresponding to total shareholder remuneration of £1.2bn for H1.

Following these announcements, Barclays shares were down 1.6% on Thursday morning on the London Stock Exchange.

In a reaction note, analysts at RBC said they considered the current price level to be a 'good entry point' into the stock, while acknowledging that the market will need further signs of progress before granting a higher valuation multiple to the stock.


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