We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Barclays' Q1 Earnings Increase on Solid IB, Stock Dips 1.6%
Read MoreHide Full Article
Barclays (BCS - Free Report) reported first-quarter 2025 net income attributable to ordinary equity holders of £1.9 billion ($2.35 billion), up 20.3% from the prior year quarter.
Despite a robust quarterly performance, Barclays shares are down 1.6% in pre-market trading. Inflation and tariff uncertainties seem to be weighing on investor sentiment.
An increase in revenues, driven by solid investment banking (IB) performance, and a solid balance sheet supported the results. However, the company recorded a rise in credit impairment charges and operating expenses in the quarter.
Barclays’s Revenues Rise, Expenses Increase
Total income was £7.71 billion ($9.71 billion), up 10.9% year over year.
Operating expenses (excluding litigation and conduct costs) of £4.26 billion ($5.36 billion) increased 6.5%.
The cost-to-income ratio was 57%, down from 60% in the year-ago period.
In the reported quarter, Barclays recorded credit impairment charges of £643 million ($809.5 million), up 25.3% year over year.
Pre-tax income was £2.72 billion ($3.42 billion), up 19.4% from the prior-year quarter.
BCS’ Balance Sheet Solid
Total assets, as of March 31, 2025, were £1,593.5 billion ($2,061.1 billion), up 5% from the prior quarter.
Total risk-weighted assets fell 1.9% from the Dec. 31, 2024 level to £351.3 billion ($454.4 billion) as of March 31, 2025.
As of March 31, 2025, the Common Equity Tier 1 (CET1) ratio was 13.9% compared with 13.5% as of March 31, 2024.
Our View on Barclays
Given Barclays’ restructuring and business-simplification efforts, its operating efficiency is expected to improve in the quarters ahead. The company’s cost-saving efforts will likely keep aiding financials. Yet, uncertainties regarding the performance of capital markets businesses and a persistent rise in credit impairment charges are concerns. Nonetheless, a solid balance sheet and buyouts are expected to aid revenue growth.
HSBC Holdings (HSBC - Free Report) reported first-quarter 2025 pre-tax profit of $9.48 billion, which declined 25% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
HSBC’s results were affected by a fall in revenues, higher expected credit losses, and other credit impairment charges, partially offset by a fall in expenses.
Deutsche Bank (DB - Free Report) reported first-quarter 2025 earnings attributable to its shareholders of €1.78 billion ($2.01 billion), up 39.2% year over year.
DB’s results were aided by a rise in revenues and lower expenses. However, higher provision for credit losses was a spoilsport.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Barclays' Q1 Earnings Increase on Solid IB, Stock Dips 1.6%
Barclays (BCS - Free Report) reported first-quarter 2025 net income attributable to ordinary equity holders of £1.9 billion ($2.35 billion), up 20.3% from the prior year quarter.
Despite a robust quarterly performance, Barclays shares are down 1.6% in pre-market trading. Inflation and tariff uncertainties seem to be weighing on investor sentiment.
An increase in revenues, driven by solid investment banking (IB) performance, and a solid balance sheet supported the results. However, the company recorded a rise in credit impairment charges and operating expenses in the quarter.
Barclays’s Revenues Rise, Expenses Increase
Total income was £7.71 billion ($9.71 billion), up 10.9% year over year.
Operating expenses (excluding litigation and conduct costs) of £4.26 billion ($5.36 billion) increased 6.5%.
The cost-to-income ratio was 57%, down from 60% in the year-ago period.
In the reported quarter, Barclays recorded credit impairment charges of £643 million ($809.5 million), up 25.3% year over year.
Pre-tax income was £2.72 billion ($3.42 billion), up 19.4% from the prior-year quarter.
BCS’ Balance Sheet Solid
Total assets, as of March 31, 2025, were £1,593.5 billion ($2,061.1 billion), up 5% from the prior quarter.
Total risk-weighted assets fell 1.9% from the Dec. 31, 2024 level to £351.3 billion ($454.4 billion) as of March 31, 2025.
As of March 31, 2025, the Common Equity Tier 1 (CET1) ratio was 13.9% compared with 13.5% as of March 31, 2024.
Our View on Barclays
Given Barclays’ restructuring and business-simplification efforts, its operating efficiency is expected to improve in the quarters ahead. The company’s cost-saving efforts will likely keep aiding financials. Yet, uncertainties regarding the performance of capital markets businesses and a persistent rise in credit impairment charges are concerns. Nonetheless, a solid balance sheet and buyouts are expected to aid revenue growth.
Barclays PLC Price, Consensus and EPS Surprise
Barclays PLC price-consensus-eps-surprise-chart | Barclays PLC Quote
Currently, Barclays carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Barclays’ Peers
HSBC Holdings (HSBC - Free Report) reported first-quarter 2025 pre-tax profit of $9.48 billion, which declined 25% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
HSBC’s results were affected by a fall in revenues, higher expected credit losses, and other credit impairment charges, partially offset by a fall in expenses.
Deutsche Bank (DB - Free Report) reported first-quarter 2025 earnings attributable to its shareholders of €1.78 billion ($2.01 billion), up 39.2% year over year.
DB’s results were aided by a rise in revenues and lower expenses. However, higher provision for credit losses was a spoilsport.