Barclays PLC (BCS) Bundle
A Brief History of Barclays PLC
Barclays PLC, a British multinational investment bank and financial services company, has a rich history that dates back to 1690. The company was founded in London by John Freame and Thomas Gould as a goldsmith banking business. It has since evolved into one of the largest banks in the world.
Key Historical Milestones
- 1690: Barclays was established as a goldsmith banking business in London.
- 1896: Barclays became a limited liability company.
- 1966: The bank expanded internationally, opening its first overseas branch in New York.
- 1986: Barclays acquired the investment bank, BZW, marking its entry into investment banking.
- 2008: Barclays played a significant role during the financial crisis, acquiring Lehman Brothers' North American operations.
- 2020: Barclays launched its digital bank, Barclays UK, focusing on enhancing its tech capabilities.
Financial Performance as of 2024
As of June 30, 2024, Barclays reported a profit before tax of £4.215 billion for the first half of 2024, down from £4.562 billion in the first half of 2023. The return on average tangible equity (RoTE) was 11.1%, compared to 13.2% in the prior year.
The total income for Barclays Group was £13.277 billion, with a 2% decrease from the previous year. Excluding inorganic activities, total income was broadly stable at £13.517 billion. The operating costs were £7.997 billion, showing a slight decrease from £8.030 billion in H123.
Balance Sheet Overview
As of June 30, 2024, Barclays reported total assets of £1,576.6 billion, with loans and advances at amortised cost amounting to £399.5 billion. The common equity tier 1 (CET1) ratio was recorded at 13.6%, with risk-weighted assets of £351.4 billion.
| Financial Metrics | June 30, 2024 | December 31, 2023 | June 30, 2023 |
|---|---|---|---|
| Total Assets (£bn) | 1,576.6 | 1,477.5 | 1,549.7 |
| Loans and Advances at Amortised Cost (£bn) | 399.5 | 401.4 | 397.9 |
| CET1 Ratio (%) | 13.6 | 13.8 | 13.8 |
| Risk Weighted Assets (£bn) | 351.4 | 342.7 | 336.9 |
| Tangible Net Asset Value per Share (p) | 340 | 331 | 291 |
Recent Developments
In June 2024, Barclays executed a share buyback of up to £1 billion, repurchasing and canceling 389 million shares. The nominal value of £97 million was transferred from share capital to the capital redemption reserve. The company also reported credit impairment charges of £0.9 billion for the first half of 2024, maintaining a loan loss rate of 45 basis points.
Barclays continues to focus on enhancing its digital capabilities and expanding its investment banking operations. The outlook for the remainder of 2024 includes targets for a return on tangible equity greater than 10%, and a group cost-to-income ratio of approximately 63%.
| Performance Metrics | H124 | H123 |
|---|---|---|
| Profit Before Tax (£bn) | 4.215 | 4.562 |
| Total Income (£bn) | 13.277 | 13.522 |
| Operating Costs (£bn) | 7.997 | 8.030 |
| Return on Average Tangible Equity (%) | 11.1 | 13.2 |
| Credit Impairment Charges (£bn) | 0.9 | 0.9 |
A Who Owns Barclays PLC (BCS)
Major Shareholders
As of 2024, the ownership structure of Barclays PLC reflects a diverse group of institutional and retail investors. The major shareholders include:
| Shareholder | Ownership Percentage | Type of Investor |
|---|---|---|
| BlackRock, Inc. | 6.8% | Institutional Investor |
| Vanguard Group, Inc. | 3.9% | Institutional Investor |
| HSBC Holdings plc | 5.2% | Institutional Investor |
| State Street Corporation | 3.4% | Institutional Investor |
| Other Institutional Investors | 41.0% | Institutional Investors |
| Retail Investors | 35.7% | Individual Investors |
Share Capital Structure
Barclays PLC has a significant amount of share capital, which is essential for understanding its ownership dynamics:
| Share Class | Number of Shares (millions) | Percentage of Total Shares |
|---|---|---|
| Ordinary Shares | 14,826 | 100% |
| Non-Voting Shares | 0 | 0% |
Recent Changes in Ownership
In 2024, there have been notable changes in the ownership landscape:
- BlackRock increased its stake by 0.5% compared to the previous year.
- HSBC Holdings sold off 1.2% of its shares, reducing its ownership to 5.2%.
- Vanguard maintained its position with no significant changes in its shareholding.
Stock Performance Metrics
Barclays PLC's stock performance has been influenced by various factors including economic conditions and market trends:
| Metric | Value |
|---|---|
| Current Share Price | £1.50 |
| Market Capitalization | £22.2 billion |
| P/E Ratio | 10.5 |
| Dividend Yield | 3.2% |
Regulatory and Compliance Aspects
Barclays PLC is subject to various regulatory requirements that impact its ownership structure:
- Common Equity Tier 1 (CET1) ratio stands at 13.6% as of June 2024.
- Risk Weighted Assets (RWAs) amount to £351.4 billion.
- The liquidity coverage ratio is at 167%, ensuring compliance with regulatory standards.
Conclusion on Ownership Dynamics
The ownership of Barclays PLC is characterized by a mix of institutional and retail investors, with significant stakes held by major asset management firms. The company's financial metrics and regulatory compliance further shape its ownership dynamics.
Barclays PLC (BCS) Mission Statement
Barclays PLC's mission statement as of 2024 emphasizes its commitment to providing a wide range of financial services to customers while maintaining a strong focus on sustainability, innovation, and customer satisfaction. The mission is aligned with their strategic goals of delivering long-term value to stakeholders and fostering financial inclusion.
Strategic Objectives
- Customer Focus: Prioritizing customer needs through innovative services and solutions.
- Sustainability Commitment: Integrating environmental, social, and governance (ESG) factors into core business practices.
- Operational Efficiency: Streamlining operations to enhance profitability and reduce costs.
- Growth and Innovation: Investing in technology and new market opportunities to drive growth.
Financial Performance Overview
As of the first half of 2024, Barclays reported a profit before tax of £4.215 billion, a decrease from £4.562 billion in the same period of 2023. The attributable profit was £2.787 billion, down from £3.111 billion year-on-year. The return on average tangible equity (RoTE) was 11.1%, compared to 13.2% in the previous year.
Key Financial Metrics
| Metric | 2024 H1 | 2023 H1 |
|---|---|---|
| Profit Before Tax | £4.215 billion | £4.562 billion |
| Attributable Profit | £2.787 billion | £3.111 billion |
| Return on Average Tangible Equity (RoTE) | 11.1% | 13.2% |
| Cost: Income Ratio | 62% | 60% |
| Basic Earnings per Share (EPS) | 18.6p | 19.9p |
| Dividend per Share | 2.9p | 2.7p |
Sector Performance
Barclays operates across multiple sectors, with the following income contributions for the first half of 2024:
| Business Unit | Total Income (£m) | % Change from 2023 H1 |
|---|---|---|
| Barclays UK | 3,713 | (5%) |
| Barclays UK Corporate Bank | 877 | (6%) |
| Barclays Private Bank and Wealth Management | 632 | 13% |
| Barclays Investment Bank | 6,347 | 1% |
| Barclays US Consumer Bank | 1,678 | 5% |
Investment and Shareholder Returns
In 2024, Barclays announced a share buyback program of up to £750 million, continuing its strategy to enhance shareholder value. The common equity tier 1 (CET1) ratio stood at 13.6% as of June 30, 2024, slightly down from 13.8% at the end of 2023, reflecting an increase in risk-weighted assets (RWAs).
Future Outlook
Barclays has set ambitious targets for 2024, aiming for a RoTE greater than 10% and a cost: income ratio of approximately 63%. The net interest income (NII) target has been adjusted to around £11.0 billion.
How Barclays PLC (BCS) Works
Business Structure
Barclays PLC operates through various segments, including:
- Barclays UK
- Barclays UK Corporate Bank
- Barclays Private Bank and Wealth Management
- Barclays Investment Bank
- Barclays US Consumer Bank
- Head Office
Financial Performance
In the first half of 2024, Barclays reported the following key financial metrics:
| Metric | H124 (£m) | H123 (£m) | % Change |
|---|---|---|---|
| Total Income | 13,277 | 13,522 | -2% |
| Profit Before Tax | 4,215 | 4,562 | -8% |
| Attributable Profit | 2,787 | 3,111 | -10% |
| Return on Average Tangible Equity (RoTE) | 11.1% | 13.2% | -2.1% |
| Earnings Per Share (EPS) | 18.6p | 19.9p | -6.5% |
| Common Equity Tier 1 (CET1) Ratio | 13.6% | 13.8% | -0.2% |
Segment Performance
Each segment's performance in H124 was as follows:
| Segment | Total Income (£m) | Profit Before Tax (£m) | Return on Average Tangible Equity (%) |
|---|---|---|---|
| Barclays UK | 3,713 | 1,063 | 20.4% |
| Barclays UK Corporate Bank | 877 | 248 | 16.6% |
| Barclays Private Bank and Wealth Management | 632 | 151 | 29.7% |
| Barclays Investment Bank | 6,347 | 1,614 | 10.8% |
| Barclays US Consumer Bank | 1,678 | 119 | 7.2% |
| Head Office | 30 | (408) | N/A |
Balance Sheet Overview
As of June 30, 2024, Barclays' balance sheet showed:
| Item | Amount (£bn) |
|---|---|
| Total Assets | 1,576.6 |
| Loans and Advances to Customers | 198.7 |
| Customer Deposits | 236.8 |
| Risk Weighted Assets (RWAs) | 351.4 |
| Tangible Net Asset Value (TNAV) per Share | 340p |
| UK Leverage Ratio | 5.0% |
Liquidity and Capital Management
Barclays maintained a strong liquidity position with the following metrics:
| Metric | Amount (£bn) |
|---|---|
| Group Liquidity Pool | 328.7 |
| Liquidity Coverage Ratio (LCR) | 167.0% |
| Net Stable Funding Ratio (NSFR) | 136.4% |
Shareholder Returns
Barclays has a clear strategy for shareholder returns, including:
- Dividend for H124: 2.9p per share
- Planned share buyback of up to £750 million
How Barclays PLC (BCS) Makes Money
Revenue Streams
Barclays PLC generates revenue through several key business segments including Personal Banking, Corporate Banking, Investment Banking, Private Banking and Wealth Management, and the US Consumer Bank. The total income for the first half of 2024 was £13,277 million, reflecting a slight decrease from the previous year.
| Business Segment | Total Income (£m) | Operating Expenses (£m) | Attributable Profit (£m) | Return on Average Tangible Equity (%) |
|---|---|---|---|---|
| Barclays UK | 3,713 | 2,108 | 1,063 | 20.4 |
| Barclays UK Corporate Bank | 877 | 486 | 248 | 16.6 |
| Barclays Private Bank and Wealth Management | 632 | 436 | 151 | 29.7 |
| Barclays Investment Bank | 6,347 | 3,902 | 1,614 | 10.8 |
| Barclays US Consumer Bank | 1,678 | 800 | 119 | 7.2 |
| Head Office | 30 | 449 | (408) | N/A |
| Total | 13,277 | 8,181 | 2,787 | 12.0 |
Net Interest Income
Barclays' net interest income (NII) for the first half of 2024 was reported at £6,128 million, with NII excluding the Investment Bank and Head Office at £5,415 million. The net interest margin increased slightly to 4.16% from 4.15% year-on-year.
Investment Banking Performance
The Investment Banking division contributed significantly to Barclays' earnings, with total income increasing by 10% year-on-year. This growth was driven by a 21% increase in banking fees and underwriting income, reaching £1,296 million. Equity capital markets fees saw a remarkable increase of 59%.
Cost Management
Barclays reported operating costs of £8,181 million, up from £8,062 million in the previous year. The cost-to-income ratio was maintained at 61%, indicating a stable operating efficiency despite inflationary pressures.
Credit Impairment Charges
The group recorded credit impairment charges of £897 million for the first half of 2024, with a stable coverage ratio of 1.4%. This reflects a resilient credit performance amid higher delinquencies in US cards, partially offset by an improved macroeconomic outlook across portfolios.
Balance Sheet Highlights
As of June 30, 2024, Barclays' total assets increased to £1,576.6 billion, a rise attributed to higher trading securities and secured lending in the Investment Bank. The Common Equity Tier 1 (CET1) ratio stood at 13.6% with risk-weighted assets (RWAs) at £351.4 billion.
| Metric | Value |
|---|---|
| Total Assets (£bn) | 1,576.6 |
| Total Liabilities (£bn) | 1,405.6 |
| CET1 Ratio (%) | 13.6 |
| RWAs (£bn) | 351.4 |
| Tangible Net Asset Value per Share (p) | 340 |
Geographical Revenue Breakdown
In terms of geographical performance, Barclays' income distribution for the first half of 2024 was as follows:
| Region | Income (£m) |
|---|---|
| United Kingdom | 6,829 |
| Europe | 1,180 |
| Americas | 4,574 |
| Africa and Middle East | 39 |
| Asia | 655 |
| Total | 13,277 |
Future Outlook
Barclays has set a target for a return on tangible equity (RoTE) of greater than 10% for 2024, with expectations of a net interest income of around £11.0 billion, reflecting the positive impact of the current interest rate environment.
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Article updated on 8 Nov 2024
Resources:
- Barclays PLC (BCS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Barclays PLC (BCS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Barclays PLC (BCS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.