Jefferies expects Barclays (LON:BARC) to post first-quarter profit when it updates investors on its performance next week, Proactive Investors reports. The results will come amid pressure from activist investor Edward Bramson who has been pushing for a board seat.
Today’s session has seen a small drop in the Barclays share price, with the group’s stock having given up 0.19 percent to 168.62p as of 13:46 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.04 percent lower at 7,468.24 points. Over the past year, the Barclays share price has given up more than a fifth of its value, as compared with about a two-percent gain in the Footsie.
Barclays to post Q1 results
Barclays is scheduled to post its first-quarter update on Thursday and Proactive Investors reports that Jefferies expects the company to report pre-tax profit of £1.5 billion for the first quarter, compared to a £236-million loss a year earlier when the bank had to pay $2 billion to settle a lawsuit in the US over the sale of mortgage-backed securities in the run-up to the financial crisis. The analysts further forecast broadly flat total income of £5.4 billion with the investment bank falling to £2.4 billion income from £2.8 billion.
‘Another stick’ for Bramson
Proactive Investors also quoted Nicholas Hyett, equity analyst at Hargreaves Lansdown, as commenting that with US peers “Bank of America reporting choppy conditions in its investment banking and trading business, and JP Morgan warning about a ‘high teens’ percentage fall in trading revenues, Q1 results could prove another stick with which Bramson can beat the Barclays board”.
Barclays will kick off the FTSE 100 banking reporting season on Thursday, April 25, followed by FTSE 100 peer RBS (LON:RBS) on Friday, April 26. StanChart (LON:STAN) reports on April 30, with Lloyds (LON:LLOY) to follow on May 2, while HSBC’s (LON:HSBA) first-quarter update is due out on May 3.