Barclays PLC on Wednesday reported fourth-quarter pretax profit below market views as it declared a higher total dividend for the year and said it intends to launch a share buyback.
The U.K. bank
posted a pretax profit for the period of 1.31 billion pounds ($1.59 billion) compared with GBP1.43 billion a year earlier. Pretax profit was expected to reach GBP1.50 billion, according to a company-compiled consensus.
The FTSE 100-listed lender’s net attributable profit fell to GBP1.04 billion from GBP1.08 billion for the year-earlier period. Analysts expected it to close the quarter with a net profit of GBP919 million, according to the consensus.
Total income increased to GBP5.80 billion from GBP5.16 billion for the fourth quarter of 2021, missing consensus’ estimated GBP6.07 billion. Barclays said net interest income–the difference between what banks earn on loans and pay clients for deposits–accounted for GBP2.74 billion of total income, from GBP2.23 billion last year.
The bank closed the quarter with a common equity Tier 1 ratio–a key measure of balance-sheet strength–of 13.9%, against consensus’ 13.6% and the 13.8% it stood at the end of the third quarter.
The board declared a total dividend of 7.25 pence per share, up from 6.0 pence for 2021.
Barclays said it intends to launch an up to GBP500 million share buyback, while analysts had expected a GBP675 million program.
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