Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Barclays 2018 results: share price seesaws as full-year profit misses forecasts

The UK lender reported full-year profit of £1.4 billion, helping the bank to end 2018 firmly in the black and bounce back after suffering losses a year prior, but Brexit remains a key concern this quarter.

Barclays reported full-year profit of £1.4 billion in 2018 on Thursday, seeing the bank swing back into the black after suffering significant losses in its previous fiscal year of £1.92 billion.

However, despite a relatively strong end to the year, Barclays recorded group profit of £3.5 billion, falling short of analysts’ forecasts.

The lender also used its recent trading update to announce that it will take allocate around £150 million aside to act as a Brexit buffer and reiterated its commitment to the UK as a British bank.

Barclays results: key figures

Barclays group profit before tax came in at £3.5 billion, which is inline with how the bank performed in the previous fiscal year. Meanwhile, its UK business saw profit increase to £2 billion, up from £1.7 billion in 2017, driven by lower interest margins and strong balance sheet growth.

‘2018 represented a very significant period for Barclays,’ Barclays Group CEO Jes Staley said. ‘In the course of the year, having resolved major legacy issues and reduced the drag from low returning businesses, we started to see the earnings potential of the bank, as the strategy we have implemented began to deliver.’

‘This was evident in the improved performance across the Group compared to 2017,’ he added.

Barclays shaky share price amid UK economic uncertainty

The bank’s share price edged higher on Thursday morning following its full-year results, only for its gains to be eroded later on as investors grow increasingly weary of the impact Brexit will have on UK financial services.

The bank’s share price climbed as much as 4.3% on Thursday morning, but those gains were short-lived with the stock seeing its share price slump as trading continued.

Barclays confirms 6.5p dividend and pledges to return earnings to shareholders

The bank’s share price performance is a surprise considering the lender used its recent trading update to announce that it plans to return a greater proportion of its earnings to shareholder via share buybacks.

Barclays also confirmed that it will pay a 6.5p dividend to shareholders and announced that earnings per share was 21.9p in 2018.

‘Earnings per share excluding litigation and conduct for the full year was 21.9p,’ Staley said. ‘Our CET1 capital ratio of 13.2% is at our target of around 13%, and we have grown tangible book value for three quarters in a row.’

‘We will use the strong capital generation of the bank to return a greater proportion of those earnings to shareholders by way of dividends and to supplement those dividends with additional returns, including share buybacks,’ he added.

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. See full non-independent research disclaimer and quarterly summary.

Trading around Brexit

Find out how Britain’s EU exit continues to affect traders, and discover:

  • How you can trade on Brexit
  • The markets you should be watching
  • Brexit trading strategies for key assets

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 Sunday. 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 spread betting and CFDs.

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