Barclays: 0.4x Net Tangible Assets, 10% ROE, Share Buybacks, Safe Dividends But Still Cannot Catch A Break

Oct. 16, 2022 10:11 AM ETBarclays PLC (BCS)CS, DB, JPM, C11 Comments
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  • Barclays' share price recently declined due to the UK mini-budget debacle.
  • BOE has won the game of Chicken with the UK government.
  • I expect BCS to bounce higher from here.
  • The read across from the U.S. banks reporting is bullish.
  • BCS is a dividend growth stock, although, given a discount to book, buybacks are currently preferred.

Barclays Bank sign London


Barclays (NYSE:BCS) is currently valued at ~0.4x tangible book value. It is also poised to deliver a return on tangible equity greater than 10%. This translates to an earnings yield of ~25%, or a PER of ~4.

Notably, it

Interest Rates Sensitivity

Barclays IR Website

Structural Hedge Contribution

Barclays IR Website

5-year Gilt


Data by YCharts

Loan Loss Coverage Ratios

BCS Investor Relations

This article was written by

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Independent banking research focuses on financials, deep value, special situations, and financial arbitrage. Agnostic and apolitical approach for scouring the earth for durable and uncorrelated cashflows that work well in both inflationary and deflationary settings.See my tipranks profile below: benefit from independent insights and quality analysis from a banking insider - subscribe as a "real-time" follower above.

Disclosure: I/we have a beneficial long position in the shares of BCS, DB, C either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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