Barclays announces subdued financial results for 2023 year

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on Feb 20, 2024
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  • This morning, UK banking group Barclays announced their financial results for the full 2023 year.
  • The results reflected the more subdued 2023 environment for banks, including the looming promise of rate cuts.
  • Nevertheless, Barclays did manage respectable net profits for the year and steered clear of scandal.

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United Kingdom-based banking conglomerate Barclays PLC (BCS) reported their full financial results this morning.

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The company reported a pre-tax profit of £4.3 billion for the full year, which was significantly lower than its full-year counterpart in 2022, and a loss of £0.1 billion in Q4 of 2023.

The results in more detail

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According to the company, it also delivered a delivered a return on tangible equity (RoTE) of 10.6% excluding Q423 structural cost actions, with total capital distributions of £3.0bn, equivalent to 19.40 pence per share.

Operating costs were also down, however, on the positive side – coming in at £16.7 billion.

Comparison to Q4 2022

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In comparison, the bank’s results for the full 2022 year and its Q4 were:

  • A profit of £1.3 billion before tax for Q4 2022
  • A profit of £7.0 billion before tax for the full year
  • A return on tangible equity (RoTE) of 10.4%, with total capital distributions equivalent to 13.40 pence per share
  • Operating costs of £24.9 billion, a decrease of two percent

The forecast ahead of earnings for Barclays

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With interest rate cuts being considered imminent across much of the globe (including the UK), the end of 2023 did not promise the same calibre of earnings as years like 2022, with its sky-high interest rates.

Nevertheless, compared to other banks, Barclays had a relatively quiet and stable 2023, unmarred by insider trading scandals like Goldman Sachs endured, for example.

As a result, investors largely expected dependable, if unspectacular, results today. General consensus out the company’s pre-tax profit to be around the £235 million mark for Q4.

This is a decent enough result, if far less than 2022’s Q4 pre-tax profit of £1.3 billion.

The 2024 year ahead

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In its 2024 outlook report, entitled ‘A year of hard choices’, Barclays painted a grim picture for the world economy and the bank itself in the upcoming year, including predictions of lower growth, lower inflation and ‘recession 2.0’ happening at last, where it failed to materialise last year.

This suggests subdued earnings for the bank for the remainder of the 2024 year to come as well.

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