BCS Barclays PLC

By Elena Vardon

Barclays PLC on Wednesday reported fourth-quarter pretax profit below market expectations and issued guidance for the year ahead.

The U.K. bank posted a pretax profit for the period of 1.31 billion pounds ($1.59 billion) compared with GBP1.43 billion a year earlier. Pretax profit was expected to reach GBP1.50 billion, according to a company-compiled consensus.

The FTSE 100-listed lender's net attributable profit fell to GBP1.04 billion from GBP1.08 billion for the year-earlier period. Analysts expected GBP919 million, according to the consensus.

Total income increased to GBP5.80 billion from GBP5.16 billion for the fourth quarter of 2021, missing consensus' estimated GBP6.07 billion. Barclays said net interest income--the difference between what banks earn on loans and pay clients for deposits--accounted for GBP2.74 billion of total income, from GBP2.23 billion last year.

The board declared a total dividend of 7.25 pence per share, up from 6.0 pence for 2021.

Barclays said it intends to launch an up to GBP500 million share buyback, while analysts had expected a GBP675 million program.

The bank closed the quarter with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 13.9%, against consensus' 13.6% and the 13.8% it stood at the end of the third quarter. It added it expects to operate within the 13%-14% range in 2023.

The lender said it sees net interest margin for Barclays UK in 2023 of more than 3.20%. It guided for a return on tangible equity greater than 10% for the year ahead, after posting 10.4% for 2022 at 8.9% for the fourth quarter. Barclays also targets a cost income ratio percentage in the low 60s as it reported ending the year at 67% and the final quarter at 69%.

"We are cautious about global economic conditions, but continue to see growth opportunities across our businesses through 2023," said Chief Executive C.S. Venkatakrishnan.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

February 15, 2023 03:03 ET (08:03 GMT)

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