Barclays Reported Record 2021 Group Profit Before Tax, Stock Higher

  • BARC.uk
    (${instrument.percentChange}%)

Barclays Financial Results

Barclays is a British universal bank, headquartered in London and established in 1896 as a limited company. It provides not only retail banking but also corporate and investment banking services.

Before the London open today, it announced Record 2021 Group Profit Before Tax £8.4 billion, from around £3 billion in the previous year, while Net Income rose to £21.9 billion [1]. In Q4 2021 Profit Before Tax stood at £1.5 billion and Net Income at £5.2 billion.

The bank also released £700 million in credit impairment provisions during the last year, from a charge of £4.8 billion in 2020 and announced a share buyback program of up to £1 billion.

This was the first report under new Chef Executive C. S. Venkatakrishna, who commented that "I am proud that we have delivered this resilient performance while continuing to support our clients and customers through another year of COVID-19 related challenges".

He also highlighted some long-term priorities like the next-generation consumer financial services. Back in December, Barclays had teamed-up with Amazon to allow UK customers to pay online in instalments, taping into the growing Buy Now Pay Later (BNPL) market.[2]

Stock Reaction

BARC.uk comes from a poor week, but today it gains nearly 3%, as investors react positively to its financial results. It has been managing to stay defend its EMA200 for a year now, doing it again today. This keeps January's high in the spotlight (220.60), but it may be early for a greater advance towards 244.40.

On the other hand, BARC.uk it is vulnerable to sub-EMA200 moves that would expose it to 169.40 and could open the door for a bigger decline towards and beyond 156.40.

UK Banking Sector

Focus now sifts to rival Lloyds, which reports on Thursday, while HSBC was in the spotlight yesterday. HSBC announced Profit before tax of $18.9bn in 2021, from $8.777 in the prior year and a new share buy-back of up to $1 billion.

All regions were profitable in 2021, notably HSBC UK Bank plc, where reported profit before tax increased by $4.5bn to $4.8bn. [3]

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 23 Feb 2022 https://home.barclays/content/dam/home-barclays/documents/investor-relations/ResultAnnouncements/2021FYResults/20220223-BPLC-FY2021-Results-Announcement.pdf

2

Retrieved 23 Feb 2022 https://home.barclays/news/press-releases/2021/12/amazon-teams-up-with-barclays-to-enable-customers-to-pay-in-inst/

3

Retrieved 18 May 2022 https://www.hsbc.com/news-and-media/media-releases/2022/hsbc-holdings-plc-annual-results-2021

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