Things Are Better At Barclays But Still Not Back To 'Normal'
Oct. 2, 2013, 7:23 AM
- Up in a down market is Barclays (BCS) after an upgrade to Buy at SocGen.
- Shares +1% premarket.
- SocGen has been busy on the bank rating front, launching coverage on the big American lenders just two weeks ago.
- Barclays quickly recovered smartly from the Libor story and Diamond resignation last year, but has been unable to gain much ground in 2013.
Sep. 27, 2013, 8:51 AM
- "I'm buying my rights, I'm bullish on Barclays (BCS)," ousted CEO Bob Diamond tells CNBC. "Barclays has become a better and stronger institution," with the new leadership of Antony Jenkins and Sir David Walker.
- In need of capital, the bank launched a $9B rights issue about two weeks ago, offering shareholders one new share for every four they own at a 40% discount to the price at that time. It's hard to imagine anyone not exercising their rights for that deal.
Sep. 26, 2013, 7:45 AM
- Making continued effort to cut costs and simplify, Barclays (BCS) will stop offering wealth management services in about 130 countries by 2016. Barclays Wealth employs about 8K and the bank says that number is not likely to go down a lot because of this.
- Barclays this week named Peter Horrell as CEO of the unit - Horrell had held the job on an interim basis since the spring after Tom Kalaris was fired. The wealth operation posted an ROE of just 2.5% in H1.
- The plan will leave the Barclays Wealth focused on just 70 countries which are estimated to cover 86% of the global wealth market. The bank will stop full-service wealth management for thousands of current customers with between £100K-£500K to invest. They will now be served by a "lighter touch" new segment called "Private Clients."
Sep. 25, 2013, 4:36 AM
- The EU's top 42 banks need a further €70.4B ($95B) of capital to comply with Basel III core-capital regulations, the European Banking Authority estimates.
- By the end of last year, the combined gap had been cut by €29.1B compared with six months earlier.
- The rules, which are due to come into effect in 2019, require that banks hold a core-capital buffer of at least 7% of their assets on a risk-weighted basis.
- Banks will also need to maintain a leverage ratio of 3% of their total non risk-weighted assets from 2018. The shortfall for this requirement is €106.6B.
- Banks include: BCS, HBC, DB, LYG, RBS, SAN
- ETFs: AXFN, KBWX, IPF, IXG, EUFN
Sep. 23, 2013, 7:36 AM
- Citigroup (C) slips 1% in the premarket after its weekend "pre-announcement" of a big fall in FICC revenue in Q3. The bank had been hoping to get bailed out by a big September, but the Fed's non-taper last week squelched the chance of major portfolio moves by clients.
- Anybody paying attention surely noticed last week's evaporation of profit at Jefferies (now owned by Leucadia) as fixed-income trading revenue essentially disappeared.
- Deutshce Bank (DB) is expected to soon be out with a warning similar to Citibank's. Barclays (BCS) and Credit Suisse (CS) have already waved their own red flags over this issue.
- Not yet heard from are Goldman (GS), Morgan Stanley (MS), JPMorgan (JPM), and BofA (BAC), but Goldman is also off nearly 1% premarket.
Sep. 22, 2013, 2:52 AM
- Blackstone (BX) has reportedly acquired the Hughes Center complex in Las Vegas for $347M from Crescent Real Estate Holdings, a joint venture between Barclays Capital (BCS) and Goff Capital Partners.
- The Hughes Center comprises 1.5M square feet and includes office space, a hotel, restaurants and corporate residential facilities. Blackstone is buying the property despite a 22% vacancy rate, which is on a par with Southern Nevada, an area that was badly hit by the financial crisis.
Sep. 19, 2013, 12:45 PM
Sep. 19, 2013, 9:13 AM
Sep. 16, 2013, 7:57 AM
- Barclays (BCS) gets a 2-notch upgrade from Nomura, which now rates the stock a Buy rather than a Reduce. Last week, Jefferies initiated the bank at a Buy, but Investec downgraded to Add from Buy.
- Presenting this morning at KBW's U.K. Day and European Financials Conference, Barclays has reportedly issued cautious comments about investment banking activity in August and going forward.
- Shares flat premarket.
Sep. 16, 2013, 2:48 AM
- Starting today, tens of millions of U.K. consumers will be able to seamlessly switch banks within seven working days, down from 19-30 days until now.
- Banks have spent £750M ($1.2B) in preparing for the introduction of the new rules, in which they have to ease the process for customers to leave them. The project is being closely watched in the U.S., where banks have no obligations to assist customers if they want to switch banks, and could serve as a template for similar programs in America and elsewhere.
- The U.K. banks affected include HSBC (HBC), RBS (RBS), Lloyds (LYG) and Barclays (BCS), which hold 75% of of the market of 76M checking accounts.
Sep. 12, 2013, 2:42 AM
- Verizon Communications (VZ) received orders for $100B of new bonds from over 1,000 investors as it sold $49B worth of debt in the largest corporate-bond offering in U.S. history.
- Everyone seems to have emerged happy from this deal. Verizon received a huge chunk of the money it needs - and at relatively low rates - to pay for the $130B acquisition of Vodafone's 45% stake in Verizon Wireless; the banks involved made $265M in fees, with Barclays (BCS), JPMorgan (JPM), Bank of America (BAC) and Morgan Stanley (MS) each earning about $41M; and investors received a higher-yielding debt from a strong U.S. company.
Sep. 4, 2013, 3:42 AM
- Barclays (BCS) intends to launch a £5.8B ($9B) rights issue on Friday next week in order to meet regulatory requirements to boost its capital.
- Barclays announced the fundraising on July 30, when it said it will offer existing shareholders one new share for every four they own at 185 pence each. That represents a 40% discount to Barclays' share price the day before the announcement.
- Barclays expects the new shares to start trading on October 3.
- Shares are -0.25% at 284.4 pence in London. (PR)
Sep. 3, 2013, 7:53 AM
- The bank has decided to sell its retail operations in the United Arab Emirates after completing a review of the business. The sale could impact up to 280 employees, says a source.
- A separate source at the bank tells Reuters Barclays (BCS) will keep its Dubai branches in order to serve corporate clients.
- The move is part of an overall effort to trim jobs, expenses, and business lines in the face of higher capital requirements.
- Previous: Barclays reviewing UAE operations.
- Shares +2.3% premarket.
Sep. 3, 2013, 4:25 AM
- Verizon Communications (VZ) has reportedly started syndicating a $61B one-year bridge loan that will support the company's $130B acquisition of 45% of Verizon Wireless from Vodafone.
- Verizon intends to help pay for the deal with $49B in bonds and $14B in other debt, but might need the bridge loan if it can't issue the bonds by the time the transaction closes, which is expected in Q1 2014. The $63B in funding will replace the bridge loan.
- JP Morgan (JPM), Morgan Stanley (MS), Bank of America (BAC) and Barclays (BCS) are leading the financing and underwriting the deal.
- Meanwhile, Verizon has no plans to enter the Canadian market. The carrier had been linked with a couple of struggling wireless start-ups. The news should be positive for Canada's three largest telecom operators - BCE (BCE), Rogers Communications (RCI) and Telus (TU) - whose shares tumbled in response to Verizon's expansion plans in Canada and then climbed on initial reports of the Vodafone deal.
Aug. 28, 2013, 9:22 AM
- Breaking in a big way with BOE policy under his predecessor, Mark Carney says those banks meeting the minimum 7% capital threshold will be able to reduce the level of required liquid asset holdings. He estimates this would lower total required holdings by £90B once all eight major banks get to 7%.
- The Q&A is beginning now.
- Earlier from Carney.
- BCS +2.5%, RBS +1.7%, LYG +1.8%, HBC -1% premarket.
Aug. 26, 2013, 9:39 AM
- "Rates businesses could have lower revenues over the next few years as European sovereign opportunities recede," says Citigroup (C) global head of rates Andrew Morton.
- Revenues in rates trading at investment banks fell 36% in H1, according to research group Coalition. It's a big move in a segment which has become the banks' most lucrative since the financial crisis and makes up 20% of overall revenue, according to Boston Consulting Group.
- "We expect revenues and headcount productivity to sharply decline as the business moves to more efficient trading venues," says Deutsch's Matt Spick. Those with the biggest market share like Citigroup, Barclays (BCS), and Deutsche (DB) should cope better than smaller rivals like Credit Suisse (CS), which has already cut capital allocated to the business and has announced more cuts are on the way.
Barclays Plc operates as a bank holding company that engages in the business of providing retail banking, credit cards, corporate and investment banking and wealth management services in Europe, the Americas, Africa and Asia. The company operates in nine segments: UK Retail & Business Banking,... More
Industry: Foreign Money Center Banks
Country: United Kingdom
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