Why Barclays Shares Are Dropping Today

Barclays PLC BCS shares are trading lower after the company reported fourth-quarter EPS and sales results that were down year-over-year.

What to Know: On Wednesday, Barclays reported financial results for the quarter ended Dec. 31, 2022, headlined by earnings of $0.30 per share, which represented a 16.67% decrease over earnings of $0.36 per share in the same period last year. Additionally, Barclays reported sales of $6.8 billion, representing a 2.17% decrease from sales of $6.96 billion in the same period last year.

Barclays primarily attributed its unfavorable year-over-year performance to a costly trading error in the United States during 2022, resulting in heavy litigation and conduct fees and rising costs related to anticipated future loan losses. The company also warned of a deteriorating macro environment.

Barclays CEO, C.S. Venkatakrishnan, said, “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. We are cautious about global economic conditions, but continue to see growth opportunities across our businesses through 2023.”

Barclays is a universal bank headquartered in the United Kingdom. It operates via two principal segments; U.K. and International.

According to data from Benzinga Pro, Barclays was down 8.46%, trading at $8.44 at the time of publication. The stock has a 52-week high of $11.19 and a 52-week low of $5.89.

Photo: courtesy of Barclays.