Barclays boosted after Q1 results

0 mins. to read
Barclays boosted after Q1 results
pcruciatti /

The price of shares in FTSE 100 banking giant Barclays (LON:BARC) climbed 6.91% to 104.52p (as of 12:00 BST) after it said the return on tangible equity had been resilient despite the COVID-19 crisis. Statutory profits before tax for the first quarter were down by 40% due to an increase in credit impairment charges linked to a single name client.

CEO James E Stanley commented: “Barclays remains well capitalised with a common equity tier 1 (CET1) ratio of 13.1%. Given the uncertainty around the developing economic downturn and low interest rate environment, 2020 is expected to be challenging. However, we believe that a RoTE of greater than 10% remains the right target for the bank over time.

“In response to a request from the Prudential Regulation Authority (PRA), we cancelled the full year 2019 dividend payment of 6 pence per ordinary share, and the Board will decide on future dividends and its capital returns policy at year-end 2020.

“Despite all the challenges we face as a consequence of COVID-19, I am confident Barclays will emerge from this pandemic, well placed to continue to serve our customers and clients, the communities and economies in which we operate, and our shareholders“.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *