Barclays first quarter earnings, swings back to profit amid overhaul

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Barclays first quarter earnings, swings back to profit amid overhaul

Signage shines through a window reflecting Barclays head office in Canary Wharf, London, U.K.

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LONDON — Barclays on Thursday reported first-quarter net income attributable to shareholders of £1.55 billion ($1.93 billion), beating expectations and returning the British lender to profit amid a major strategic overhaul.

Analysts polled by Reuters had expected net profit attributable to shareholders of £1.29 billion for the quarter, according to LSEG data.

Pre-tax profits, however, were down 12% to £2.28 billion from $2.6 billion a year earlier, as the bank braces to implement its extensive revamp plans.

Here are some other highlights:

• First-quarter group revenue was £6.95 billion, down 4% from the same ******* last year.
• Credit impairment charges were £513 million, compared with £524 million in the first quarter of 2023.
• Common equity tier one (CET1) capital ratio, a measure of bank’s financial strength was 13.5%, down from 13.8% in the previous quarter.
• Full-year return on tangible equity (RoTE) was 12.3%.
• Quarterly total operating expenses were up 2% year-on-year at £4.2 billion.

Barclays reported a net loss of £111 million in the fourth quarter of 2023 due to an operational shake-up designed to reduce costs and improve efficiencies.

CEO C.S. Venkatakrishnan said the bank’s first-quarter results showed it was committed to implementing its overhaul plans, including via further investment in its U.K. consumer business and through its

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, which expected to complete in the fourth quarter of this year.

“We are focused on disciplined ********** of the plan that we presented at our Investor Update on 20th February,” he said in a statement.

The revamp plans included a £900 million hit due to structural cost-cutting measures, which the bank said were expected to lead to ****** cost savings of around £500 million in 2024, with an expected payback ******* of less than two years.

The overhaul saw the reorganization of the business into five operating divisions, separating the corporate and investment bank to form: Barclays U.K., Barclays U.K. Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank and Barclays U.S. Consumer Bank.

The bank also pledged to return £10 billion to shareholders between 2024 and 2026 through dividends and share buybacks.

— CNBC’s Elliot Smith contributed to this report.

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