Barclays shares rise 3% on profits surge

Cornelia Mascio
Febbraio 23, 2017

Barclays Group said Thursday Feb. 23, 2017, that it will complete its restructuring six months earlier than planned as it sheds risky assets and focuses on consumer, corporate and investment banking in NY and London.

Shares in Barclays rose by almost 3 per cent in early trading on Thursday after it reported a jump in profits for 2016 to £3.2 billion, versus £1.1billion a year earlier.

Chief executive Jes Staley said: Certain legacy conduct issues remain and we intend to make further progress on them.

Shares in Barclays opened up 2.4 per cent at 241 pence on Thursday morning.

It is also being investigated on this side of the Atlantic by the Serious Fraud Office into the way it raised funds at the height of the financial crisis.

The banking giant reported a profit before tax of £3.2bn, up 182 per cent from £1.1bn in 2015.

Staley, 60, was awarded 60 percent of his maximum bonus opportunity for the year, giving him a total pay package worth 4.2 million pounds including salary and other benefits, according to the London-based bank's annual report.

Its annual report showed that 364 employees earned more than £1 million a year ago, while 11 took home pay deals worth more than £5 million.

The wider corporate and investment arm of Barclays saw a 14% rise in profits to £2.6bn.

'Centrica's results provided the unexpected announcement that there would be no dividend growth in 2016, ' said Oliver Salvesen, analyst at Jefferies.

On Wednesday, Lloyds Banking Group had also reported a huge increase to its bottom line thanks to its PPI costs falling year-on-year.

Mr Staley reiterated the group had no plans to move staff to Europe as a result of Brexit and said it would be able to use its bases in Germany and Ireland once the United Kingdom pulls out of the EU.

In the latest sign of progress, the bank said it expects to close its "noncore" unit in June this year, six months earlier than expected, after selling down businesses from France to Egypt.

Capital has been a key concern for investors since the Bank of England said last November that Barclays had fallen short of one of its targets in a stress test scenario, but stopped short of requiring the bank to submit a new plan to boost reserves. Staley insisted that bonuses were down by 1% to £1.5bn in a year when profits were up.

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