Bulletin
Investor Alert

London Markets Archives | Email alerts

Feb. 18, 2021, 10:41 a.m. EST

U.K. banks slide after cautious Barclays outlook

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Barclays PLC (BARC)
  • X
    Barclays PLC ADR (BCS)
  • X
    Lloyds Banking Group PLC (LLOY)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

Barclays shares led a downturn for the U.K. banks on Thursday after an underwhelming reaction to financial results.

Barclays /zigman2/quotes/208409333/delayed UK:BARC +1.76% /zigman2/quotes/206581728/composite BCS +2.31% shares fell as much as 5%, as the U.K. bank said fourth-quarter pretax profit fell by 45% to £693 million, reflecting both lower revenue and higher costs. While the results comfortably beat forecasts of £285 million, and Barclays also announced a new £700 million stock buyback, it took a £500 million charge for bad debt and declared a dividend of just 1 pence per share.

Headwinds to income in Barclays U.K. are expected to persist in 2021 and the medium term, including the subdued demand for unsecured lending and the low interest rate environment, Barclays said.

Rivals Lloyds Banking Group /zigman2/quotes/202285510/delayed UK:LLOY +1.39% , NatWest Group /zigman2/quotes/209265718/delayed UK:NWG +1.92% and HSBC Holdings /zigman2/quotes/203901799/delayed UK:HSBA +1.92% also fell.

“The boardrooms of Barclays’ rivals may be feeling a bit more nervous as they prepare to unveil their own fourth-quarter numbers as it feels like the first big name out the door has set a fairly high bar and still received a knock back from investors,” said Russ Mould, investment director at AJ Bell.

The pressure from the banks weighed on the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.37% , which dropped despite gains for the mining sector on strong copper prices /zigman2/quotes/210054311/delayed HG00 +1.93% .

Smith & Nephew /zigman2/quotes/207176500/delayed UK:SN +0.24% , the medical equipment maker, fell 5% as the company said its profit margins for 2021 will be worse than 2019, due to reduced production volumes, increased research and development investments, acquisitions and foreign-exchange moves.

/zigman2/quotes/208409333/delayed
UK : U.K.: London
197.82 p
+3.42 +1.76%
Volume: 35.35M
Oct. 15, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
1.52%
Market Cap
£33.28 billion
Rev. per Employee
£332,602
loading...
/zigman2/quotes/206581728/composite
US : U.S.: NYSE
$ 11.09
+0.25 +2.31%
Volume: 3.90M
Oct. 15, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
1.46%
Market Cap
$45.82 billion
Rev. per Employee
$426,514
loading...
/zigman2/quotes/202285510/delayed
UK : U.K.: London
49.12 p
+0.68 +1.39%
Volume: 175.56M
Oct. 15, 2021 4:35p
P/E Ratio
7.46
Dividend Yield
2.52%
Market Cap
£34.86 billion
Rev. per Employee
£554,080
loading...
/zigman2/quotes/209265718/delayed
UK : U.K.: London
£ 233.90
+4.40 +1.92%
Volume: 15.01M
Oct. 15, 2021 4:35p
P/E Ratio
15.49
Dividend Yield
0.03%
Market Cap
£26.68 billion
Rev. per Employee
£237,730
loading...
/zigman2/quotes/203901799/delayed
UK : U.K.: London
434.20 p
+8.20 +1.92%
Volume: 29.30M
Oct. 15, 2021 4:35p
P/E Ratio
13.15
Dividend Yield
3.68%
Market Cap
£88.69 billion
Rev. per Employee
£257,711
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,234.03
+26.32 +0.37%
Volume: 0.00
Oct. 15, 2021 4:56p
loading...
/zigman2/quotes/210054311/delayed
US : U.S.: Nymex
$ 4.72
+0.09 +1.93%
Volume: 93,125
Oct. 15, 2021 4:59p
loading...
/zigman2/quotes/207176500/delayed
UK : U.K.: London
£ 1,277.00
+3.00 +0.24%
Volume: 1.91M
Oct. 15, 2021 4:35p
P/E Ratio
27.07
Dividend Yield
0.02%
Market Cap
£11.21 billion
Rev. per Employee
£198,502
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.