Barclays Q3 FY23 Results Reaction
Barclays just reported its Q3 results, which can be found here. Thoughts and opinions are needed and urgent!
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Whilst this quarter was down against the same quarter last year, the overall performance, particularly of Barclays UK operation are better than expected against a backdrop of reduced lending volumes and increased interest rates. The fact their operating expenses have reduced despite wage growth and inflation, shows Barclays have trimmed the fat where necessary to balance the books.
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Barclays' wings continue to get clipped as its latest results show how much of a negative impact higher rates have had on its business. Pre-tax profits were down from last year, but with EPS coming in better than what analysts were expecting, this should give investors some conviction that Barclays is holding its own.
With corporate lending and global markets seeing growth too, CIB income may have found a bottom. The division is responsible for almost half of the bank's income, so these signs of life could reinvigorate investor sentiment. Additionally, the lender's cost-savings initiatives helped to boost Barclays' profits, which was also supported by impairment charges coming in much lower than expected.
That said, the slight downgrade to UK net interest margins (NIM) for the year may sour sentiment. As such, headwinds still persist and the Blue Eagle may take a while before it catches up to speed given the uncertain outlook regarding inflation and interest rates.
With corporate lending and global markets seeing growth too, CIB income may have found a bottom. The division is responsible for almost half of the bank's income, so these signs of life could reinvigorate investor sentiment. Additionally, the lender's cost-savings initiatives helped to boost Barclays' profits, which was also supported by impairment charges coming in much lower than expected.
That said, the slight downgrade to UK net interest margins (NIM) for the year may sour sentiment. As such, headwinds still persist and the Blue Eagle may take a while before it catches up to speed given the uncertain outlook regarding inflation and interest rates.