IAN GORDON INVESTEC
These are results of which Sir Bob would be proud. BarCap has outperformed its investment bank peers with revenues of £3.5bn, up one per cent and underlying costs of £2.1bn, down six per cent. We see Barclays as a quality defensive play with clear valuation support. It remains our top pick.
NIC CLARKE CHARLES STANLEY
Barclays has complicated regulatory issues to deal with, customer redress for PPI and interest rate hedging products could prove more expensive than expected, income remains fairly anaemic and the bad debt charge is unlikely to continue to boost results. Things are unlikely to get easier in the near term.
JASON NAPIER DEUTSCHE BANK
The full benefits of the ING UK acquisition are not fully reflected in the result. Neither are all of the cost cuts executed in the quarter. We see good momentum in the franchise. With earnings and capital ahead of forecasts, and earnings driven by a strong investment bank we retain our Buy rating.