BBCS.US Reports 23% Growth in First-Half Earnings, Announces $13 Billion Stock Repurchase Plan
According to our sources at Zhong Tong Finance APP, Barclays Bank (BCS.US) announced its second-quarter earnings on Tuesday, driven by market transactions fueled by US President Donald Trump's trade tariffs. The bank reported a significant gain in its market business, exceeding expectations. Additionally, the bank has announced a $13 billion stock repurchase plan.
According to data, the bank reported a pre-tax profit of $25 billion, a 28% increase year-over-year, compared with analysts' average expectation of $22.3 billion; total revenue reached $72 billion, in line with analysts' expectations.
In the first half of this year, the bank's pre-tax profit grew 23%, reaching $52 billion, exceeding analysts' average expectation of $49.6 billion.
The bank also reported a return on tangible equity (ROTE) of 13.2%, lower than the previous quarter's 14%. The ordinary share capital adequacy ratio (CET1) stood at 14%, higher than last quarter's 13.9%.
Investors remain focused on the bank's investment banking business performance: in the three months to June, revenue reached $33 billion, a 10% increase year-over-year. Investment banking is a traditional source of income for Barclays, and CEO C.S. Venkatakrishnan announced cost-cutting plans for this department in February 2024.
The department has undergone significant changes recently: Alex Ham, former global head at Numis, was appointed as global chairman; reports indicate that over 200 employees will be laid off; and the bank is seeking further cost-cutting opportunities through consulting firm McKinsey.
Challenges include potential adjustments to US capital leverage rules, which may intensify domestic market competition - Barclays excels in debt markets and has a significant presence in the US market since acquiring Lehman Brothers' investment banking and capital markets business. In the UK domestic market, Barclays faces profound changes in the banking landscape: Santander Bank, a Spanish giant, acquired TSB from Sabadell Bank in early July, further solidifying its position in the UK; NatWest returned to private ownership at the end of May, and investors are closely monitoring its strategic direction for potential adjustments.