Investment banks' costs rose more than 25% over a year.
The stock market reaction shows an evident disappointment among investors.
Barclays, the
UK-based financial giant, has reported worse-than-expected 2022 financial results,
as regulatory fines and a slide in dealmaking fees negatively affected overall revenues.
The lender set aside £1.2 billion to cover potential loan losses.
Barclays 2022 Report below
Expectations
According
to the financial statement published on Wednesday, one of the biggest UK
lenders' profit came in at £7 billion in 2022, falling significantly by 14%
year-over-year (YoY), despite rising interest rates and good performance of the fixed-income trading department.
However, Barclays
was hit hard by the reduction in dealmaking fees, which fell 39% YoY to £2.2
billion. Although it was one of the most minor declines compared to rival banks
in Europe and Wall Street, it still negatively impacted the final results,
which came in below analysts' consensus.
"Barclays
performed strongly in 2022. Each business delivered income growth, with Group
income up 14%. We achieved our RoTE target of over 10%, maintained a strong
Common Equity Tier 1 (CET1) capital ratio of 13.9%, and returned capital to
shareholders. We are cautious about global economic conditions, but continue to
see growth opportunities across our businesses through 2023," C. S.
Venkatakrishnan, the Group Chief Executive, commented.
While Barclays'
CEO believes that 2022 was a strong year for the Group, investors in the London
stock market have a completely different view.
Watch the recent FMLS22 panel on constructing collaboration between fintech and banks.
Barclays Falls 9% on LSE
Wednesday's
session for Barclays shares on the London Stock Exchange (LSE:BARC) began with
a sharp downward gap. At the time of writing, shares in the lending giant are
losing 9.4% and trading at £169.8, which is the lowest in a month.
If the
session closes at current levels, it could be the worst trading day for
Barclays since April 2020, almost three years ago. The bank's shares have
rebounded from their October lows at £132 by nearly 50%, reaching a one-year
peak in early February. However, they have depreciated slightly since then,
with financial results drastically exacerbating the sell-off.
Barclays shares fall sharply after financial results. Source: Tradingview.com
Although,
not every financial metric in Barclays' report looks negative. The
aforementioned fixed income department, which additionally includes currencies
and commodities (FICC), increased profits by 65%, performing far better than
rival Goldman Sachs and Morgan Stanley, which reported growth in FICC trading of
38% and 20% YoY, respectively, in 2022.
£1.6 Billion in Charges
for Barclays
The
investment bank had to pay £1.6bn in penalties and restitution to clients this
year in relation to the over-selling of securities in the US. The firm has
decided to reduce the remuneration of top executives by a total of £1m due to
regulatory failings.
In
September 2022, the Securities and Exchange Commission (SEC) announced that 15
broker-dealers and one affiliated investment adviser have agreed to pay
combined penalties of over $1.1 billion for their recordkeeping failures. The
charged firms included Barclays, Bank of America, Citigroup, Credit Suisse,
Deutsche Bank, Goldman Sachs, Morgan Stanley and UBS. Barclays agreed to pay a penalty
of $125 million.
Barclays, the
UK-based financial giant, has reported worse-than-expected 2022 financial results,
as regulatory fines and a slide in dealmaking fees negatively affected overall revenues.
The lender set aside £1.2 billion to cover potential loan losses.
Barclays 2022 Report below
Expectations
According
to the financial statement published on Wednesday, one of the biggest UK
lenders' profit came in at £7 billion in 2022, falling significantly by 14%
year-over-year (YoY), despite rising interest rates and good performance of the fixed-income trading department.
However, Barclays
was hit hard by the reduction in dealmaking fees, which fell 39% YoY to £2.2
billion. Although it was one of the most minor declines compared to rival banks
in Europe and Wall Street, it still negatively impacted the final results,
which came in below analysts' consensus.
"Barclays
performed strongly in 2022. Each business delivered income growth, with Group
income up 14%. We achieved our RoTE target of over 10%, maintained a strong
Common Equity Tier 1 (CET1) capital ratio of 13.9%, and returned capital to
shareholders. We are cautious about global economic conditions, but continue to
see growth opportunities across our businesses through 2023," C. S.
Venkatakrishnan, the Group Chief Executive, commented.
While Barclays'
CEO believes that 2022 was a strong year for the Group, investors in the London
stock market have a completely different view.
Watch the recent FMLS22 panel on constructing collaboration between fintech and banks.
Barclays Falls 9% on LSE
Wednesday's
session for Barclays shares on the London Stock Exchange (LSE:BARC) began with
a sharp downward gap. At the time of writing, shares in the lending giant are
losing 9.4% and trading at £169.8, which is the lowest in a month.
If the
session closes at current levels, it could be the worst trading day for
Barclays since April 2020, almost three years ago. The bank's shares have
rebounded from their October lows at £132 by nearly 50%, reaching a one-year
peak in early February. However, they have depreciated slightly since then,
with financial results drastically exacerbating the sell-off.
Barclays shares fall sharply after financial results. Source: Tradingview.com
Although,
not every financial metric in Barclays' report looks negative. The
aforementioned fixed income department, which additionally includes currencies
and commodities (FICC), increased profits by 65%, performing far better than
rival Goldman Sachs and Morgan Stanley, which reported growth in FICC trading of
38% and 20% YoY, respectively, in 2022.
£1.6 Billion in Charges
for Barclays
The
investment bank had to pay £1.6bn in penalties and restitution to clients this
year in relation to the over-selling of securities in the US. The firm has
decided to reduce the remuneration of top executives by a total of £1m due to
regulatory failings.
In
September 2022, the Securities and Exchange Commission (SEC) announced that 15
broker-dealers and one affiliated investment adviser have agreed to pay
combined penalties of over $1.1 billion for their recordkeeping failures. The
charged firms included Barclays, Bank of America, Citigroup, Credit Suisse,
Deutsche Bank, Goldman Sachs, Morgan Stanley and UBS. Barclays agreed to pay a penalty
of $125 million.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
ASX Faces $150M Capital Charge After Scathing Inquiry Finds Years of Neglect
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
