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.
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.
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.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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