Adding new buyback capacity is great, but it doesn't always mean that the pace of a company's buyback spending will increase. This latter action is particularly relevant, as it means a firm is increasing the speed at which it is delivering buyback benefits.
Barclays PLC's (LSE:BARC) latest deal in America looks less like a retreat and more like a reassertion of intent. The bank is buying Best Egg, a US personal loan originator, for $800 million, a move UBS believes sends a clear message that management want to grow the US consumer franchise rather than shrink it.
Barclays will buy U.S. personal loan originator Best Egg
Deutsche Bank described Barclays PLC's (LSE:BARC) third-quarter results as “slightly better than expected”, highlighting that a surprise £500 million buyback and move to quarterly distributions as “helpful confidence indicators” of the bank's underlying capital generation. It reckons the quarter represented a modest but meaningful step toward sustained shareholder confidence.
The CEO of Barclays said the bank wasn't stuck with exposure to fallen auto-parts company First Brands because of its own due diligence, but it was lumbered with Tricolor exposure.
Barclays PLC (LSE:BARC) unveiled a £500 million share buyback and upgraded its profitability guidance for this year, following a third-quarter performance that was better than expected. The bank said the buyback was part of a move to quarterly distributions, with chief executive CS Venkatakrishnan also saying the board had decided to bring forward a portion of full-year distribution plans after "robustly and consistently generating capital over the past nine quarters" to lift tangible net asset value (TNAV) per share to 392p and the common equity tier 1 capital ratio to 14.1%.
The bank has brought forward a portion of its full-year distribution plans and now intends to carry out quarterly share buybacks.
Barclays announced a £500 million ($667 million) share buyback on Wednesday, as it reported third-quarter earnings. The bank said it plans to move to quarterly share buyback announcements.
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Credit quality has barely featured on investors' radar this year, but that complacency showed cracks on Friday as European bank shares slipped 2.5%. The fall, modest by historical standards, was led by investment banks and marked one of the sector's few setbacks in an otherwise strong year.
If the run-up to Rachel Reeves' Budget next month has left investors wary of British banks, UBS is not joining the caution. Its analysts have kept their “overweight” stance on the sector, arguing that cheap valuations and strong earnings momentum make the risk worth taking.
Barclays PLC maintains strong operating momentum, outperforming the market and peers, with shares up over 18% including dividends. BCS's revenue growth, cost control, and manageable credit costs support robust profitability, though H2 2025 may see softer results due to cyclical factors. The bank remains well-capitalized, continues substantial capital returns, but its dividend yield is less attractive compared to other European banks.