Barclays Bank building
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LONDON — Barclays on Wednesday reported a full-year net profit of £5.023 billion ($6.07 billion) for 2022, beating consensus expectations of £4.95 billion but suffering a 19% fall from the previous year’s restated £6.2 billion in part due to a costly trading blunder in the U.S.
Fourth-quarter attributable profit was £1.04 billion, above analyst projections of £833.29 million but down 4% from the £1.08 billion posted in the fourth quarter of 2021.
Here are the other financial highlights:
- Common equity tier one capital (CET1) ratio was 13.9%, compared to 13.8% in the previous quarter and 15.1% for the final quarter of 2021.
- Return on tangible equity (ROTE) was 8.9% for the fourth quarter, compared to 12.5% in the third quarter and 13.4% for the fourth quarter of 2021. ROTE for the full year was 10.4%.
- Net interest margin (NIM) was 2.86% for the full year, compared to 2.52% at the end of 2021.
- The bank booked £1.2 billion in credit impairment provisions, versus a £700 million charge in 2021.
The British lender took a substantial hit from an over-issuance of securities in the U.S., which resulted in litigation and conduct charges totaling £1.6 billion over the course of 2022.
The British bank announced early last year that it had sold $15.2 billion more in U.S. investment products — known as structured notes — than it was permitted to.
Barclays CEO C.S. Venkatakrishnan said the group performed “strongly” in 2022.
“Each business delivered income growth, with Group income up 14%. We achieved our RoTE target of over 10%, maintained a strong Common Equity Tier 1 (CET1) capital ratio of 13.9%, and returned capital to shareholders,” he said.
“We are cautious about global economic conditions, but continue to see growth opportunities across our businesses through 2023.”
The international unit, which includes Barclays’ investment bank, saw return on equity fall to 10.2% for the full year from 14.4% in 2021,…
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