Analyst Views: Are there business lines Barclays rely on for solid future growth?

 
Tim Wallace
Follow Tim

IAN GORDON | INVESTEC

Fourth quarter investment bank revenues of £2.1bn were up two per cent quarter on quarter. Fixed income, currencies and commodities was up 12 per cent, which compares favourably with investment bank peers. The broad absence of negative one-offs is in stark contrast to loss-making UK domestic peers.

SHAILESH RAIKUNDLIA | ESPIRITO SANTO

Stand out performers were Barclaycard and UK retail which produced clean pre-tax profits of £375m and £331m, up 11 per cent and 20 per cent year on year, primarily due to year on year revenue growth of seven per cent, to £1.15bn and £1.2bn respectively, in both businesses.

GARETH HUNT | CANACCORD GENUITY

Until we see evidence that absolute costs are falling, that fixed income, currencies and commodities income has stabilised and that investment bank compensation ratios are consistently under 40 per cent, we would expect Barclays’ stock to remain in the sideways pattern.

Related articles