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Barclays announced other top highlights in the earnings report while also affirming that its performance will help it return more funds to the shareholders.
British multinational universal bank Barclays PLC (LON: BARC) has posted a better than expected net profit as it ended the 2021 financial year in a grand style, positively impacting its stock. Per the performance report shared by the bank, it came off with an annual income of £21.9 billion as against the £21.766 billion it recorded in the same period in the 2020 financial year.
The company’s net profit hit £6.38 billion ($8.67 billion) for the 2021 financial year, a figure that is extremely way ahead of the £1.526 billion reported back in 2020. Per the report, Barclays’ Corporate and Investment Banking (CIB) division experienced a major boom with figures coming down to £5.8 billion.
The fourth-quarter performance was complementary to the company’s overall growth in the previous year. A net profit of £1.12 billion was recorded in Q4, up from an expected £756.5 million polled by Refinitiv analysts.
“Barclays demonstrated a clear and sustainable path to growth over the course of 2021, delivering double-digit RoTE across our operating businesses, and returning £2.5 billion of excess capital,” said C. S. Venkatakrishnan, Group Chief Executive. “Our strategic priorities will continue to develop the diversified business model that we have established, investing in advanced technology capabilities in our consumer businesses, delivering sustainable growth across our global Corporate and Investment Bank, and reinforcing our commitment to aiding the transition to a low-carbon economy.”
The impressive growth record from Barclays is a testament to the bank’s unique positioning in the British and global economic sectors. Despite the change in leadership back in November last year, the company was able to steer its business even as major economies continue to reel from the aftermath of the coronavirus pandemic.
Investors are impressed with the bank’s performance, a trend that is being showcased in the BARC stock price that is up 4.47% at the time of writing to GBX 198.66.
BARC Stock Growth Driven by Other Impressive Performance Highlights
The company announced other top highlights in the earnings report while also affirming that its performance will help it return more funds to the shareholders.
Barclays said despite its Common Equity Tier One Capital (CET1) ratio growing by 15.1%, it is still down from an all-time high of 15.4% at the end of the third quarter and equal to 15.1% in the final quarter of 2020. The Net Interest Margin (NIM) was pegged at 2.52% while the London-based financial giant released £700 million in credit impairment provisions, versus a £4.8 billion charge in 2020.
“I am proud that we have delivered this resilient performance while continuing to support our clients and customers through another year of COVID-19 related challenges,” Venkatakrishnan said. “Taken together, our 2021 performance has enabled us meaningfully to increase returns to our shareholders, with £2.5 billion of excess capital returned via a total dividend of 6.0 pence per share and £1.5 billion of announced share buybacks.”