Barclays shares near post-financial crisis high
Shares in Barclays closed in on a post-financial crisis high on Tuesday morning.
The stock has surged higher over the past 12 months due to improved investor sentiment towards the banking sector thanks to higher interest rates.
Shares rallied to a high of 310.20p following market open, touching highs not witnessed since the rebound of the financial crisis in 2010.
The jump follows what analysts referred to the dip as a “temporary glitch” last week after the lender’s shares dropped following its results.
Shares dipped after annual results
The FTSE 100 lender reported a pre-tax profit of £1.7bn in its fourth quarter results last Thursday, beating analyst consensus.
Shares briefly dipped in the aftermath, with Quilter financial analyst Will Howlett stating at the time “there were no real dramas in Barclays Q4 results”.
Howlett had said the performance was “good” but there was “nothing incremental to drive shares after a strong performance”.
Analysts at BofA Global Research reiterated their ‘Buy’ rating for the stock and added the “valuation remains attractive”.
“We remain positive on the stock and expect management to be able to deliver on the main 2026e targets,” they added.
Richard Hunter, head of markets at Interactive Investor, said: “There is little to suggest that the current market consensus of the shares as a strong buy will be troubled, despite today’s temporary share price glitch.”
The lender’s net interest margin expanded by 46 basis points, compared to the same quarter last year.
Barclays UK also enjoyed a jump in profits following its acquisition of Tesco Bank’s retailing business, which was completed on November 1, 2024.
Commenting on the results, group chief executive, C. S. Venkatakrishnan, said: “In 2024 we met our financial targets, delivering for our customers and clients, with operational and financial performance improvement driven by disciplined execution of the three-year plan.”
Barclays was the first of the UK Big Four banks to report annual results, with Natwest following the next day and also surpassing analyst estimates.
HSBC will post its annual results on Wednesday 19, followed by Lloyds on Thursday 20.