Barclays full-year results: where next for the share price?

The UK lender will unveil its full-year results on Thursday, with the bank hoping to reveal an annual profit boost now that the PPI deadline has finally passed.

Barclays will unveil its full-year results on Thursday, with the lender hoping to reveal an annual profit boost now that the payment protection insurance (PPI) claim window has closed.

Analysts expect that the bank will report pre-tax profit of around £6 billion, up from £5.7 billion over the same period a year ago, representing 5.2% increase.

The deadline for claims in relation to mis-sold PPI passed in August last year, with charges related to those claims putting a major dent in British lenders earnings.

Looking to trade Barclays shares? Open a live or demo account with IG today.

Barclays hopes to hit full-year targets

When Barclays releases its full-year results on Thursday, investors will be hoping the lender will meet its 2019 guidance targets, though it will be a challenge considering the myriad of global macroeconomic headwinds it faces and the low interest rate environment applying added pressure on margins.

The lender continues to target a 9% return on tangible equity (RoTE) in 2019, with that figure rising to 10% in 2020. However, the lender conceded that the challenging banking environment is making it difficult to achieve these targets, particularly with respect to 2020.

Barclays full-year cost guidance remains unchanged however, with its management expecting to reduce 2019 costs below £13.6 billion. The bank also expects to reach its revised CET1 target of circa. 13.5% at year end.

UBS upgrades outlook for Barclays share price

Analysts at UBS reiterated their ‘buy’ rating for Barclays in February and upgraded their price target for the stock to 195p.

Based on Barclays closing at 176p on Monday, analysts at UBS believe the stock has a potential upside of 10.8%.

You can go long or short Barclays with IG using derivatives like CFDs and spread bets.

This information has been prepared by IG, a trading name of IG Markets 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.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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.