Barclays 2018 results are in line with analyst forecasts with pre-tax profits of £3.49bn down 1% year-on-year.
But credit impairment charges of £1.47bn are ahead of analyst expectations driven by US cards portfolio provisions and Brexit concerns.
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Barclays posts a net profit for fiscal 2018 of £1.39bn again in line with forecasts.
Total income is £21.1bn (2017: £21.08bn). Barclays UK income was stable as lower interest margins were offset by strong balance sheet growth
Operating expenses of £13.9bn (2017: £14.25bn) reduce by 2%.
Barclays’ cost-income ratio for fiscal 2018 improves by 2 percentage points to 66%, excluding litigation and conduct costs.
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By GlobalDataBarclays 2018 results: highlights
The bank is doubling its final dividend to 6.5p per share.
On the other hand, Barclays’ shareholders have endured a miserable run with a share price under pressure.
Barclays’s share price is down by 18% since the start of 2018. And since 2009 the share price has fallen by 53%.
Return on average shareholder equity is 3.6% in 2018 or 8.5% after excluding one-off charges. Barclays is targeting returns of more than 10% by 2020.
Barclays’ UK net interest margin for fiscal 2018 of 3.23% compares favourably to Lloyds and RBS.
But looking ahead, Barclays “expects modest downward pressure on NIM in 2019.”
Barclays 2018 results: digital success
Barclays kicks off 2019 with 10.8 million digitally active customers.
Active mobile banking users now total 7.3 million while Barclays digital only customers rise to 5.0 million.
Barclays remains the largest brand by branch numbers in the UK and starts 2019 with 1,058 outlets. That represents a net reduction of 150 branches during 2018, following the closure of 101 units in 2017.
Barclays CEO Jes Staley says: “2018 represented a very significant period for Barclays. We started to see the earnings potential of the bank, as the strategy we have implemented began to deliver.
“The fundamental strength of our Group rests on a diversified, though connected, portfolio of businesses. Barclays is well diversified by geography, by product and by currency between our consumer and wholesale businesses.
“Our overriding priority for 2019 and 2020 is the attainment of our returns targets. Beyond those we are also focusing on medium term revenue growth opportunities which rely on technology rather than capital.”
