CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Barclays share price: 4 things we learnt from its half-year results

The UK lender once again delivered an impressive set of results against a backdrop of challenging market conditions, prompting the bank to deepen cost cutting measure to boost returns.

Barclays delivered a strong set of half-year results last week considering the challenging market conditions that UK lenders against the backdrop of Brexit.

IG looks at the main takeaways from its most recent trading update.

Barclays records double-digit profit growth

The UK lender recorded an 82% rise in pre-tax profits to £3.1 billion in its half-year results, an impressive feat considering the challenging banking environment as a result of Brexit.

‘This was another resilient quarter of performance,’ Barclays Group CEO Jes Staley said.

‘For the second quarter in succession Barclays generated an attributable profit of over £1 billion and delivered EPS of 12.6p for the first half of 2019,’ he added.

Cost-cutting deepens to boost returns

In the face of tough market conditions and a highly competitive UK mortgage market, Barclays pledged to double-down on its cost-cutting measures to boost returns and hit profitability targets in 2019.

Staley admitted on a call to reporters that the bank had cut some 3,000 jobs during its second quarter, with the bank firing what individuals that it described as ‘non-revenue producers’.

The lender also plans to deepen its cost-cutting by reducing bonuses and lowering its overall capital expenditure, helping bring its spending below £13.6 billion instead of its previous guidance for costs in the range of £13.6 billion to £13.9 billion.

Practise trading Barclays and other UK banking stocks with an IG demo account.

Barclays share price finds support

Despite recording another strong quarterly performance, Barclays share price continues to slide, with it falling 22% over the last 12 months.

However, on a year-to-date basis, Barclays stock is down just 2%, which is a testament to its resilient performance and is more reflective of what is and continues to be an extremely trying environment for British lenders.

‘Margin pressure in the UK mortgage market has dented income at home, while the corporate and investment bank has done better than a relatively pessimistic market had expected,’ Hargraves Lansdown analyst Nicholas Hyett said.

‘The UK retail market looks like it's becoming more and more competitive, particularly mortgages, and a squeeze on margins at the same time as the economic outlook is weakening is a potentially unpleasant combination,’ he added.

Barclays continues to deliver returns for shareholders

The lender remains committed to returning value to shareholders, with the bank increasing its interim dividend by 20% to 3p.

Increasing its dividend pay-out is not only a reflection of its stronger-than-expected results, but also the absence of regulatory fines that the bank has been burdened with in previous years.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.