Barclays releases key profit figures early
We've got some early Barclays news.
The bank has released some key figures ahead of its full year results (due tomorrow at 7.00am).
Within the results, Barclays will announce adjusted profit before tax for 2013 of £5.2bn and statutory profit before tax of £2.9bn.
Barclays' pre-released figures don’t factor in additional charges for litigation and conduct issues. Last month, the bank said it’ll take a hit of £330m which will dent court-quarter profits.
In their lookahead to tomorrow's results, Deutsche Bank saw 2013 profit before tax at £5,744bn.
When it comes to what's expected tomorrow, Deutsche's anticipating a more aggressive attitude toward costs from Barclays, along with further detail on its five year action plan. This involves closing 400 of its 1,600 UK retail branches, replacing some of them with in-store formats in ASDA.
It’s also looking for more information on Barclays’ £65bn-80bn deleveraging plan.
The bank is working to fall in line with the Prudential Regulation Authority’s three per cent stress leverage ratio. Deutsche is expecting another £150bn to be put towards getting there:
We forecast that Barclays will be at around 2.8-2.85 per cent stressed leverage at fourth quarter 2013, about £3bn short of capital or £100bn long of leverage exposure.
Of the bank’s stock, it says it expects a re-rating as investors “become more comfortable that the capital situation if under management control” and that progress is being made on costs.
Deutsche has a 17 per cent upside to its 320p target price, seeing the downside as valuation limits because of the pending action plan. Its recommendation on stock is ‘buy’.
Shares are up by around 1.4 per cent today, but haven't budged much since the news came at 10.00am.
