Home Business NewsBusinessBanking News Barclays profits fall leaving shares to dip

Barclays profits fall leaving shares to dip

by LLB Finance Reporter
24th Oct 23 11:04 am

On Tuesday shares in Barclays fell by more than 8% after providing the update that in the third quarter they reported lower earnings and cut their profit forecasts.

In the three months to September Barclays reported a pre-tax profit of £1.9 billion ahead of expectations but less that 2022’s £2 billion profit.

The banking giant are looking into ways to be more cost-efficient and they could at a later date announce structural changes within the bank.

Barclays said in their financial update, “The group is evaluating actions to reduce structural costs to help drive future returns.”

Group chief executive CS Venkatakrishnan, known within the group as Venkat, said: “We are trying to make, create, and run a more efficient organisation… you should expect us to look in all of those places where we can increase productivity.”

He added: “We see further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the group.”

Barclays did not reveal if jobs could be affected however, Venkat said they will “modulate the size of our workforce” globally.

Richard Hunter, head of markets at Interactive Investor, said: “Barclays UK also has some issues to consider, with higher interest rates leading to higher savings rates.

“As such, there has been some customer migration away from the bank as higher yields are sought elsewhere, while lower deposit volumes and mortgage margin pressure add to a difficult mix.

“As such, the bank has reduced its NIM outlook to between 3.05% and 3.1%, down from a previously guided 3.2% and a 3.22% performance in the second quarter.”

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