Barclays share price: Bank announces half-year results

on Jul 29, 2015
Updated: Oct 21, 2019

Barclays (LON:BARC) today announced its results for the six months ended 30 June 2015:

**Highlights from the company’s statement:**
Continued progress on our strategy: 11% growth in Group adjusted profit before tax to £3,729m reflecting improvements in all Core operating businesses. Group adjusted return on average shareholders’ equity increased to 7.7% (H114: 6.5%); Solid return on average equity performance across the businesses resulted in an increase in Core return on average equity to 11.1% (H114: 11.0%), driven by a 10% increase in profit before tax to £4,241m through positive cost to income jaws, with an increase in average allocated equity of £6bn to £47bn; Further run down of the Non-Core business, with risk weighted assets (RWAs) decreasing to £57bn (December 2014: £75bn). Non-Core dilution of the Group’s return on average equity was 3.4% (2014: 4.5%), having reduced average allocated equity by £4bn to £10bn; Strong progress on capital and leverage, with the fully loaded common equity tier 1 (CET1) ratio increasing to 11.1% (December 2014: 10.3%) and the leverage ratio increasing to 4.1% (December 2014: 3.7%), achieving our 2016 targets; A 7% reduction in total adjusted operating expenses to £8,262m and a 5% reduction in operating expenses excluding costs to achieve to £7,946m, driven by savings from strategic cost programmes; Progress on legacy litigation and conduct matters, with settlements of £1,608m reached with a number of authorities in Q215 in relation to industry-wide investigations into certain sales and trading practices in the Foreign Exchange market and an industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark; Net tangible asset value per share decreased to 279p (December 2014: 285p) as profit generated for the period was more than offset by dividend distributions and the impact of changes in major forward interest rates and currency movements on reserves; Statutory profit before tax increased 25% to £3,114m, which included a net loss in adjusting items of £615m (H114: £848m)

Material adjusting items: Additional provisions of £800m (H114: £nil) were made in H115 for ongoing investigations and litigation primarily relating to Foreign Exchange, taking the total provisions to £2,050m; Additional UK customer redress provisions of £1,032m (H114: £900m) were taken based on an updated estimate of future redress and associated costs. This included an additional provision of £850m recognised in Q215; A £496m (H114: £nil) gain on US Lehman acquisition assets was recognised in Q215 reflecting a settlement to resolve outstanding litigation with the Trustee of Lehman Brothers Inc.; A £429m (H114: £nil) gain was recognised in Q115 as the valuation of a component of the defined retirement benefit liability was aligned to statutory provisions; A £118m (H114: £nil) loss was recognised in Q115 primarily relating to accumulated currency translation reserves recycled upon the completion of the Spanish business sale
John McFarlane, Executive Chairman, said: “The results reported today represent continued good progress for the business.” Disclosing the group’s strategy, he added: “Our first priority is to deliver on our strategy, with increased focus on our core franchises: what we are good at, where we are good at it and what is financially compelling to us…. The second major priority of the group is to accelerate the delivery of shareholder value… The third priority is to instil a high performance ethic and process across the Group, underpinned by an enhanced values driven culture.”

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**More to follow…**
As of 07:16 BST, Wednesday, 29 July, Barclays share price is 279.60p.


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