Barclays H1 2023: Mixed Performance with Strong Investment Banking and Consumer Division

 Barclays H1 23 – 27/07

 

Barclays has had a patchy quarter share price wise, although it hasn't as yet traded below the 2 and a half year lows it hit back in March at 128p. It has found it difficult to push back above the highs seen back on May at 161.50p.

 

In April the bank reported total revenues of £7.2bn, driven by a strong performance in its investment banking division which saw revenues come in higher than expected at £3.97bn, an increase of 1% from a year ago. FICC was a particular standout, generating £1.79bn, however equities trading was disappointing at £704m.

 

The bank also performed well in its consumer division which saw a 47% increase in revenues to £1.3bn. The bank set aside £524m in respect of credit impairment charges. Even though total operating expenses didn't change that much from last year, with last year's costs boosted by a £523m impairment, it is notable that operating costs this year increased by 15% to £4.1bn.

 

Net interest margin increased to 3.18%, with the bank saying they expected to see a full year NIM in excess of 3.2%. Profits attributable to shareholders rose 27% to £1.78bn.

 

H1 revenues are expected to see an increase to £13.88bn, from £13.2bn a year ago. Further impairments are expected in Q2, with another £581m set to be added taking H1 impairments to £1,182m.