What's Going On With Barclays Stock Tuesday?

Barclays PLC BCS stock is trading lower Tuesday after it reported Q3 total income grew by 5% Y/Y to £6.26 billion in the quarter. The EPS of 8.3p compared to 9.4p Y/Y.

The company witnessed a decline in Barclays UK income (-2% Y/Y) while a growth in Barclays International (+9% Y/Y).

Operating expenses were £3.95 billion versus £3.60 a year ago. Credit impairment charges stood at £0.43 billion. 

Attributable profit declined 16% Y/Y to £1.27 billion, with a return on tangible equity of 11.0%.

CET1 ratio came in at 14.0% vs. 13.9% during the December quarter in FY22.

At amortized cost, loans and advances stood at £405.4 billion, and deposits were £561.3 billion at the end of Q3 2023.

BCS paid a half-year dividend of 2.7p per share on 15 September 2023 and completed the share buyback of £750 million.

Outlook: For 2023, BCS reiterated a loan loss rate of 50-60bps in 2023 and a return on tangible equity above 10%. 

The company now expects a net interest margin in Barclays UK of 3.05% - 3.10%, down from the prior 3.15%

The bank maintained a Common Equity Tier 1 ratio of 13%-14% in the medium term.

BCS is evaluating actions to reduce structural costs, which may result in additional material charges in Q4 FY23.

Price Action: BCS shares are down by 5.70% at $6.62 premarket on the last check Tuesday.