Barclays plc (BCS) - Get Barclays PLC Sponsored ADR Report posted weaker-than-expected full year earnings Thursday and reduced its bonus pool as the U.K. lender came to the end of its ongoing restructuring program.
Barclays said full year pre-tax profits came in at £3.2 billion ($3.98 billion), missing analysts' estimates of a £3.9 billion bottom line but up from £1.15 billion in 2015. The bank also said it improved its CET1 capital, a measure of financial strength, by 100 basis points to 12.4%, well ahead of the 11.8% figure analysts were anticipating.
Barclays shares rose more than 3.36% to change hands at a 52-week high of 243.15 pence each by 10;00 GMT, extending the three month gain to around 14%, outpacing a 9% advance for the Stoxx 600 Europe Banks index.
"A year ago we laid out our intention to accelerate the restructuring of Barclays and refocus our business as a transatlantic, consumer, corporate and investment bank, anchored in London and New York," said CEO Jes Staley. "We are now just months away from completing the restructuring of Barclays, and I am more optimistic than ever for our prospects in 2017, and beyond."
Full year revenues were tabbed at £21.5 billion, down 3% from last year, while the bank booked impairment charges of around £2.37 billion, an increase of £611 million from last year, and trimmed its overall bonus pool by 1% to £1.533 billion.
The bank also said it would pay around $1 billion to facilitate the reduction of its stake in Barclays Africa to below 50%.
Fixed income currencies and commodities (FICC) trading revenues rose to £766 million in the fourth quarter of last year, the bank said, a figure that was modestly shy of estimates but still a 33% improvement from a year ago. Equity trading revenue by a better-than-expected 29% to £410 million.
The fixed income gains, however, still trail those seen in rival U.S. banks, where topline growth of around 43% was registered at the five biggest U.S. banks.
Coalition Analytics, a research group, said earlier this week that full-year FICC trading revenues at the world's 12 biggest banks rose 8.6% last year to $75.9 billion, with most of that ($37.7 billion) coming in the second half of the year as market volatility surged following Britain's vote to leave the European Union and the surprise election win for U.S. President Donald Trump.