Tue, Feb. 3, 2:52 PM
- "Barclays' (BCS +6.2%) non-core division looks to be mis-priced," says the Morgan Stanley team of Chris Manners and Fiona Simpson, upgrading the stock to Overweight from Equal Weight. The two say the bank's non-core unit has lower NPL exposures and lower risk weight density than peers, and thus a lower scope for losses than is being priced in.
- "Capital concerns should fade as non-core capital is released and legacy conduct issues are resolved. We think a ‘steady state’ 13% CET1 ratio is almost in sight, and forecast CET1 of 13.2% by Dec 2017."
- As for the core bank, the due say its has two strong businesses with clear growth opportunities. The investment bank, however, "is highly capital consumptive and delivering subpar returns, and we expect management to continue to strictly ration capital to the division."
Tue, Jan. 20, 9:16 AM
Nov. 27, 2014, 10:08 AM
- Upgrades Barclays (NYSE:BCS) to Buy from Neutral.
- Price target rises 10% to 300p (26% upside)
- BOE's “more benign” leverage ratio means BCS is less likely to need additional capital, and will be under less pressure to shrink low risk-weight positions.
- Barclays has the lowest leverage ratio of major U.K. lenders, and was considered most at risk from the BOE’s decision.
Nov. 26, 2014, 6:32 PM| 1 Comment
Sep. 19, 2014, 12:25 PM
- A check of European closing prices finds the euphoric early reaction to the "No" vote from Scotland mostly faded by day's end. The Stoxx 50 (NYSEARCA:FEZ) closed just 0.2% higher, with the U.K.'s FTSE 100 (NYSEARCA:EWU) gaining 0.3%.
- Looking at U.K. bank ADRs: RBS (RBS +1.2%), Barclays (BCS -0.9%), Lloyds (LYG +0.5%), HSBC (HSBC -0.2%).
- Dealing with its own separatist movement, Spain (NYSEARCA:EWP) managed just a 0.1% gain.
- Previously: Euro shares lean green on "No" vote
- Previously: Might Catalonia secession fears ebb following Scotland vote?
Sep. 9, 2014, 7:30 AM
Sep. 8, 2014, 7:59 AM
- "A wall of money has gone out of the banks and into fines and redress," says KPMG's U.K. head of banking Richard McCarthy. "Hopefully the most egregious things have come out and hopefully the banks will be able to move forward."
- Over the last five years, according to KPMG, the U.K.'s largest banks - BCS, RBS, HSBC, LYG, OTCPK:SCBFF - have cut consumer and business lending by $595B, or 14%.
- "There is light at the end of the tunnel," says McCarthy, with the report noting redress costs and fines fell 44% to £2.4B in 2014's first six months from a year ago.
- Meanwhile, the banks are sharply lower premarket over Scottish independence jitters. BCS -3.5%, RBS -4.1%, LYG -4.9%, HSBC -2%.
- Previously: Cable tumbles over Scotland referendum
Jul. 30, 2014, 7:18 AM
- Barclays (NYSE:BCS) Q2 net income of £161M was ahead of expectations and compared to last year's Q2 loss of £168M.
- Amid a restructuring plan which includes the slashing of 19K jobs over the next three years, management - on the earnings call - said about 5K have been eliminated so far this year and headcount is at its lowest since 2007.
- The bank also set aside another £900M to compensate clients for improper sales of payment protection insurance. Thus far, Barclays has paid out £3.56B in claims.
- Full report
- Shares +4.2% premarket
Jul. 25, 2014, 8:03 AM
Jul. 10, 2014, 9:44 AM
- When the going gets tough, the tough suspend trading. Portugal has halted trade in Banco Espirito Santo with the stock off 17.2% on the session and 54% over the last month. At issue are financial troubles for the bank's privately-owned holding company, Espirito Santo International. Its accounts are currently under review by an external auditor who has identified irregularities and concluded the company "is in serious financial condition."
- Santander (SAN -5.8%), UBS (UBS -1.8%), Deutsche Bank (DB -3.1%), Bank of Ireland (IRE -5.6%), Credit Suisse (CS -2.8%), ING (ING -3.2%), BBVA (BBVA -3.1%). U.K. banks: Barclays (BCS -3.8%), RBS (RBS -1.9%), HSBC (HSBC -1.9%), Lloyds (LYG -2%).
- European financial sector ETF: EUFN -2.4%.
Jun. 26, 2014, 1:29 PM
- Broker-dealers including Deutsche Bank, RBC, and ITG have removed connections to dark pool Barclays LX from their routing systems, reports the WSJ, in wake of a fraud lawsuit filed by the state of New York.
- "We have had a lot of requests to turn them off," says David Mechner, CEO of Pragma Securities.
- Barclays (BCS -6.1%) is accused of lying to customers about how it favors high-frequency traders in its dark pool, and email excerpts in the suit show bank executives allegedly working to change reports and client communications to mislead them about the operation of the dark pool.
- Previously: New York sues Barclays for fraud over dark pool
Jun. 26, 2014, 9:17 AM
Jun. 26, 2014, 8:40 AM
- "This is another chapter in the story of US lawmakers versus high-frequency trading, with cynics also suggesting it is part of a continued assault on European investment banks," says IG Traders' Will Hedden, after NY sues Barclays (BCS) for fraud over its dark pool.
- The stock is off 5.5% in London action and the ADRs are lower by a similar amount premarket.
- "The integrity of the markets is a top priority of Barclays,” says a Barclays spokesman. “We take these allegations very seriously.”
- Previously: New York sues Barclays for fraud over dark pool
May. 8, 2014, 10:44 AM
- Plans to gut its investment bank (7K job cuts), park £400B of assets in a "bad bank", and cut another 12K positions from the rest of the company light a fire under Barclays (BCS +7.8%). The lender's current workforce is 139.6K strong, and the 19K in cuts announced today stands against a plan of just 12K expected earlier this year.
- Barclays' reshaped investment bank will concentrate on the core markets of the U.S. and the U.K., and the top 1K clients who generated more than 75% of revenues last year. The investment bank will now account for 30% or less of risk-weighted assets, down from 50% now.
- Talking a different line than JPMorgan's (JPM +0.4%) Jamie Dimon, Barclays boss Antony Jenkins says the evaporation of trading revenue is indeed secular, not cyclical.
- Previously: Cyclical or secular? JPMorgan warns again on trading business
- Previously: Barclays plans to axe 19,000 jobs
May. 8, 2014, 9:16 AM
May. 6, 2014, 7:09 AM
- Behind the decline in income at Barclays (BCS) in Q1 was a 49% dive in income at the investment bank as business evaporates in fixed income, currencies, and commodities. Traditionally, the largest source of revenue for the investment bank, FICC income fell 41% to £1.2B.
- "A lot weaker than expected," says Shore Capital's Gary Greenwood of the FICC number. "The key questions are: What are they doing with their investment-banking business and how are they going to stem these declines?”
- Later this week, CEO Antony Jenkins will present details of an overhaul of the investment bank. Ahead of the presentation has been a rash of top-level management exits.
- "We are obviously going through a number of changes as part of our strategic review and that may or may not have prompted some people to move on,” says Finance Director Tushar Morzaria on a reporter conference call. He notes the bank's difficulties in FICC have continued in Q2.
- Shares -3.1% premarket
- Previously: Barclays reports Q1 results
- Previously: More high-level departures at Barclays
BCS vs. ETF Alternatives
Barclays PLC is a financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth and investment management. It operates in Europe, the Americas, Africa and Asia.
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