Investors with an interest in Banks - Foreign stocks have likely encountered both Barclays (BCS) and HDFC Bank (HDB). But which of these two stocks is more attractive to value investors?
Barclays PLC and NatWest Group PLC both racked up gains on Monday as the dust settled and analysts weighed in on last week's respective results. Having both dropped in the wake of updates, Barclays added 2.9% to reach 303.2p as the new week got underway, while NatWest jumped 3.4% to 442.7p.
Barclays closed FY24 with another strong quarterly update. Management set out detailed guidance for FY25E which is broadly in line with pre-result consensus estimates. Continued progress on cost efficiency will help to offset expense headwinds from inflation, ongoing investment in the business and UK National Insurance contribution increases.
Barclays PLC's Q4 results showed a 24.3% increase in total income, driven by strong performance in UK and Investment Banking, despite a 4% ADR drop. Concerns arise from Barclays UK's credit headwinds, declining mortgage rates, and rising delinquencies, impacting lending and depository environment. Investment Banking's future is uncertain, but potential M&A and IPO rebounds, along with fixed-income opportunities, could mitigate trading revenue risks.
Mike Pond, Barclays head global inflation-linked research, join 'The Exchange' to discuss near-term inflationary pressures, the tariffs that have gone into effect, and much more.
Barclays PLC (NYSE:BCS ) Q4 2024 Earnings Conference Call February 13, 2025 4:30 AM ET Company Participants C.S. Venkatakrishnan - Group Chief Executive Anna Cross - Group Finance Director Conference Call Participants Alvaro Serrano - Morgan Stanley Benjamin Toms - RBC Capital Markets Andrew Coombs - Citi Jason Napier - UBS Jonathan Pierce - Jefferies Chris Cant - Autonomous Amit Goel - Mediobanca C.S.
Barclays PLC (LSE:BARC) full-year results were broadly in line with expectations and were accompanied by promises of further generous cash returns, so a share price fall of 6% at one point in the morning seemed harsh. Analyst Gary Greenwood at Shore Capital described the numbers as broadly in line with consensus expectations, with medium-term guidance reiterated and the announcement of a further £1 billion share buyback also as expected.
Higher revenues and a decline in operating expenses support BCS' Q4 earnings.
Santander and Barclays have launched mortgage deals below 4%, the first since November, as competition between lenders increases. The move comes as expectations grow for further Bank of England base rate cuts after the Monetary Policy Committee opted for a quarter point drop earlier this month to 4.5%.
Barclays has extended the chairmanship of Nigel Higgins for another three years as the bank looks to push ahead with a turnaround plan unveiled last year, the lender said in its annual report on Thursday.
Barclays PLC stepped up its target for returns in 2025 and plans to distribute at least £10 billion of capital to shareholders by the end of next year, including a £1 billion buyback announced today. This followed a better than expected performance in the fourth quarter, where the statutory return on tangible equity (RoTE) was 7.5% as profit before tax came in at £1.7 billion compared to £0.1 billion a year earlier.
British bank Barclays posted a rise in full-year pre-tax profit that came in just ahead of analyst expectations, while also launching a £1 billion share buyback. Pretax profit rose by 24% to £8.108 billion in 2024, just above analyst expectations of £8.081 billion, according to LSEG.