Fog shrouds the Canary Wharf enterprise district together with world monetary establishments Citigroup Inc., State Avenue Corp., Barclays Plc, HSBC Holdings Plc and the business workplace block No. 1 Canada Sq., on the Isle of Canines on November 05, 2020 in London, England.
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LONDON — Barclays on Wednesday reported a full-year internet revenue of £6.38 billion ($8.67 billion) for 2021, forward of analyst expectations of £5.75 billion, as its company and funding banking division boomed.
Fourth-quarter internet earnings attributable to shareholders got here in at £1.12 billion, outstripping a imply forecast of £756.5 million, based on Refinitiv knowledge.
The figures marked a major enchancment from the £1.53 billion internet revenue reported in 2020 and £220 million within the fourth-quarter of that 12 months, because the U.Ok. navigated contemporary nationwide Covid-19 lockdowns.
The British lender endured a turbulent remaining quarter of 2021, with longtime CEO Jes Staley resigning in November following an investigation by regulators into his relationship with Jeffrey Epstein. He was changed by C.S. Venkatakrishnan.
After the financial institution’s third-quarter earnings, Staley stated 2021 was going to be “fairly a 12 months” for Barclays, as a major increase from its company funding banking division continued to propel the group’s return on tangible fairness — a key ratio used to evaluate profitability.
Revenue earlier than tax within the company and funding financial institution hit a document £5.8 billion, together with document funding banking charges and equities earnings.
Listed below are the opposite monetary highlights:
- Frequent fairness tier one capital (CET1) ratio was 15.1%, down from an all-time excessive of 15.4% on the finish of the third quarter and equal to fifteen.1% within the remaining quarter of 2020.
- Return on tangible fairness (ROTE) was 13.4%, in comparison with 14.9% within the third quarter and three.2% for the fourth quarter of 2020.
- Web curiosity margin (NIM) was 2.52%, in comparison with 2.61% on the finish of 2020.
- The financial institution launched £700 million in credit score impairment provisions, versus a £4.8 billion cost in 2020.
- Full-year revenue earlier than tax was £8.4 billion, up from £3.1 billion in 2020.
Barclays CEO C.S. Venkatakrishnan stated in a press release Wednesday that 2021 was the 12 months through which the financial institution’s technique set out in 2016 got here to fruition, with double-digit return on tangible fairness, a “well-capitalised stability sheet” and powerful revenue efficiency even in opposition to the backdrop of the pandemic.
“I’m proud that we now have delivered this resilient efficiency whereas persevering with to assist our purchasers and clients by one other 12 months of COVID-19 associated challenges,” Venkatakrishnan stated.
“Taken collectively, our 2021 efficiency has enabled us meaningfully to extend returns to our shareholders, with £2.5 billion of extra capital returned through a complete dividend of 6.0 pence per share and £1.5 billion of introduced share buybacks.”