Barclays buy-back takes total to pounds 1bn
Wednesday 07 August 1996
News of the buy-back of 55 million shares - or 3.5 per cent of the equity - came as Barclays unveiled a 15 per cent rise in half-year profits to pounds 1.29bn and claimed further progress on its stated aim of "managing profits volatility". The shares closed at an all-time high of 872.5p, up 27.5p on the day, as investors welcomed a 21 per cent rise in the interim dividend to 11.5p a share.
Andrew Buxton, Barclays' chairman, said: "We believe the polices put in place over the last few years are now clearly showing their worth. Barclays' results for the first half of 1996 show strong progress across a broad front, with every major business performing in line with or ahead of expectations. The group is now well-placed to develop further and to exploit new opportunities."
Martin Taylor, chief executive, restated his determination to contain the boom-bust cycle previously faced by Barclays. "The business is emerging from a phase when it had been preoccupied with the problems of the past," he said.
Barclays' profits included pounds 73m of exceptional gains on business disposals. Returns in the same period last year were boosted by pounds 241m in similar gains. Operating income rose 6 per cent to pounds 3.8bn, while operating expenses dipped by 2 per cent. Bad debt provisions fell 32 per cent to pounds 148m.
In the UK, personal banking contributed pounds 363m to group profits with a further pounds 382m from business banking. Mr Taylor said that despite competition in the UK market, customer retention and growth rates continued. Barclaycard continued to strengthen, despite cut-price competition from the US.
Some 1,600 UK banking jobs were lost in the first six months of the year, with Barclays predicting several hundred more to go by the year-end.
BZW, whose investment banking and asset management arms now report separately, contributed a combined pounds 177m to group profits.
Mr Buxton said BZW was not prepared to be part of a rising wages spiral now engulfing parts of the financial sector, butstressed: "We are not against paying for high achievement. If staff can produce good results, then they should be [rewarded]."
Barclays' metal-trading assets declined from pounds 991m in 1995 to pounds 665m in the first six months of this year. Mr Taylor admitted to "mediocre" metals trading in the first half of 1996. But in a reference to the pounds 1.2bn losses incurred by Japan's Sumitomo Corporation, he added: "There have been lower profits, but we are not taking a copper bath."
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
- 5 Magna Carta will be 800 years old next year – the perfect reminder of the rights and freedoms we must hold dear
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...