BCS Earnings Prediction
The chart below shows how BCS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BCS sees a -1.16% change in stock price 10 days leading up to the earnings, and a +1.08% change 10 days following the report. On the earnings day itself, the stock moves by +0.57%. This data can give you a slight idea of what to expect for the next quarter's release.
BCS Key Earning Data
BCS Earnings Analysis
Positive
Return on Tangible Equity Growth: Barclays generated a return on tangible equity of 14% in Q1 2025, up from 12.3% in the previous year, reflecting strong income growth across all divisions.
Q1 Income Growth: Total income for Q1 was £7.7 billion, an increase of 11% year-on-year, indicating broad-based income growth, particularly in the Investment Bank and Barclays UK.
Cost-to-Income Ratio Improvement: The cost-to-income ratio improved to 57% in Q1, supporting the guidance of circa 61% for 2025, demonstrating effective cost management and operational efficiency.
Net Interest Income Increase: Barclays UK is expected to achieve more than £7.6 billion in net interest income (NII) for FY '25, up from previous estimates, driven by stronger deposit trends and a favorable mix.
Strong Q1 Performance: The Investment Bank reported a RoTE of 16.2% in Q1, with total income up 16% year-on-year, showcasing strong performance in markets and effective risk management.
Strategic Partnership for Growth: The partnership with Brookfield for the payment acceptance business is expected to enhance client experience and drive long-term growth, indicating strategic growth initiatives.
CET1 Capital Strength: Barclays ended Q1 with a CET1 capital ratio of 13.9%, at the top of its target range, reflecting a robust capital position and strong liquidity.
Tangible Net Asset Growth: The bank's TNAV per share increased by £0.15 in the quarter, indicating consistent growth in tangible net asset value, which is expected to continue.
Negative
Client Confidence Impact: Weaker client confidence is delaying investment banking transactions, which could impact future revenues.
Return on Equity Decline: The U.S. Consumer Bank's return on tangible equity fell year-on-year to 4.5%, indicating underperformance in this segment.
Impairment Charge Exceeds Guidance: The group impairment charge of £0.6 billion was above the guidance of 50 to 60 basis points, reflecting increased risk in the economic outlook.
Net Interest Margin Impact: The U.S. Consumer Bank's net interest margin was impacted by rate cuts in Q4 '24, leading to spread compression and lower NII.
Investment for Competitiveness: The partnership with Brookfield for the payment acceptance business indicates a need for significant investment to enhance competitiveness, which may strain resources.
Rising Operational Expenses: The increase in costs by £189 million year-on-year, with half attributed to Tesco Bank, suggests rising operational expenses that could affect profitability.
BCS FAQs
How does BCS typically perform around its earnings report dates?
BCS's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.16% change leading up to the report and a +1.08% change in the 10 days following the release.
Is Barclays PLC (BCS) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
BCS Earning Call Sentiment
Barclays PLC (BCS) Q1 2025 Earnings Conference Call Transcript
BCS.N
1.1%
