Barclays recorded a profit before tax of £6.6m ($8.3m) over 2023, a 6% drop year-on-year.
However, group income for Barclays totalled £25.4bn over 2023, a 3% increase from 2022.
In addition, Corporate and Investment Bank (CIB) income fell 4% to £12.6bn, attributed to lower client activity in both Global Markets and Investment Banking, but this was partially offset by a strong performance in Corporate driven by Transaction Banking.
Consumer Cards and Payments (CC&P) income increased 18% to £5.3bn due to higher balances in US cards and favourability from higher rates and client balance growth in Private Bank.
Furthermore, Barclays Group total operating expenses were £16bn in 2023, up 2% year-on-year.
Investors and returns for Barclays after 2023
The annual report also stated that it aims to return “at least” £10bn back to investors between 2024 and 2026.
Group chief executive C. S. Venkatakrishnan said: “We have spent time examining the path we are on, and the direction we will take going forward, as we know we need to do better. I believe Barclays is capable of delivering further value for our shareholders.
“We need to continue to improve our operational and financial performance, and improve total shareholder returns. To do so, over the next three years we aim to make Barclays Simpler, Better and More balanced.”
Matt Britzman, equity analyst, Hargreaves Lansdown, added: “There’s a shakeup at Barclays. It’ll now report through five distinct operating divisions with accountability as a key focus. Investors will hear more later today when the company dives into details. Fourth quarter performance was a little worse than expected, largely because of higher costs associated with the restructure. There was some concern that this could impact the buyback, but Barclays has put that to bed with a £1bn plan, ahead of expectations.
“Medium-term guidance was positive and points to around 54% of today’s market cap being returned to investors by 2026. But there may be some who question whether it’s a little optimistic, especially relating to growth expected from the investment bank. Barclays’ huge presence in the investment banking world is an attractive proposition. But conditions are still poor and low activity in the capital markets continues to weigh on performance.”
Earlier in 2024, Barclays was considering a takeover approach for Societe Generale‘s private bank in the UK in an effort to grow its clientele of affluent individuals.
