Barclays Beats Forecast With Profits Rise
Published: 15 February 2011 By MoneyHighStreet Staff Leave a Comment
Barclays today announced an increase in its annual pre-tax profit from continuing operations of 32% and is considered as a ‘buy’ for investors willing to accept the level risk associated with the currently turbulent banking world by The Share Centre.
The Barclays results beat analysts expectations which expected them to be around £5.7bn, not the £6.1bn as announced.
The Bank awarded £3.4bn of bonuses and other performance-related payments to its staff, a staggering figure perhaps but one that is 7% less than the equivalent figure for 2009. That said if charges relating to previous year bonus deferrals are included then the figure is up considerbaly comapred with 2009.
Bob Diamond, chief executive said “We are committed to demonstrating that we are both responsible in our compensation decisions and practices and that we take our regulatory obligations and UK government commitments seriously.”
He added “In particular, our overal performance awards for 2010 have been directly influenced by the commitments that we havemade under Project Merlin.”
He also explained that the bank is now targeting a 13% return on equity. The total dividend payout for the year is 5.5p per share.
Nick Raynor, investment adviser at The Share Centre commented “Barclays continues to be our preferred bank and investors seeking exposure to the sector should be attracted by its ability to offer a dividend, its strong profit growth and its international exposure. We continue to list Barclays as a ‘buy’ for investors willing to accept the level risk associated with the currently turbulent banking world.”
Barclays shares have risen following the release of the results, at the time of writing the Barclays share price was up 3.74% at 324.95p.
Investors should of course make their own judgements on buying or selling shares and if in doubt seek independent financial advice.