6th May 2014
Barclays’ stock was down 4% in early trading following the bank’s latest market update which saw pre-tax profits drop 5% to £1.69bn during the first three months of the year writes Philip Scott.
The fall in profits was primarily driven by a reduction in income in its investment banking arm, which collapsed by 28% to £2.4bn after enduring a 41% decrease in FICC (fixed income, currencies and commodities) income due to “challenging trading conditions resulting in subdued client activity”.
By 9:15am, Barclays’ stock was down by 4% or 11p to 247.4p.
Commenting on the latest results, Antony Jenkins group chief executive says: “A continued strong momentum across our retail, cards and corporate banking franchises, all of which generated higher returns year on year, offset by a significant decline in FICC income within the Investment Bank, resulting in group adjusted profit before tax decreasing 5%.”
Jenkins is due to update the market on Barclays strategy “to deliver improved and sustainable returns and growth” for its shareholders on 8 May.
In its full year results, published in February, the bank reported adjusted profit before tax for 2013 of £5.2bn, down by around a third, from some £7bn in 2012.
Presently the market consensus, according to Digital Look has the stock, down 3% in the past year, rated a ‘buy’.