Barclays (BARC) Stock Drops 4% Despite Beating Profit Forecasts and Raising Guidance
TLDR
- Barclays H1 profit before tax hit £6.1 billion, up 17% and above analyst forecasts of £5.94 billion.
- Investment bank income beat expectations, with equities revenue up 45% year-on-year in Q2.
- A £1 billion share buyback was announced, above the £831 million forecast.
- Full-year income guidance was raised slightly to £31.5 billion from £31 billion.
- Despite the strong numbers, BARC stock dropped more than 4% in London trading.
Barclays reported a 17% rise in first-half profit on Tuesday, beating analyst expectations across several key metrics. Yet the market wasn’t impressed — the stock fell more than 4% in London.
Profit before tax for the six months to June came in at £6.1 billion. Analysts had pencilled in roughly £5.94 billion.
Attributable profit after tax rose to £4.19 billion, up from £3.52 billion a year earlier. Total income for the half jumped to £16.50 billion from £14.90 billion.
BARCLAYS SHIFTS TO WALL STREET PAY MODEL
Barclays will boost bonuses and reduce fixed salaries for senior bankers, aligning pay more closely with Wall Street. Performance pay rose nearly 30% to £1.3B in H1, while salaries increased less than 1%. The bank expects an additional… pic.twitter.com/fALR1aBPg0
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