From CNBC: 2025-02-13 02:25:02

British bank Barclays reported a 24% increase in pre-tax profit to £8.108 billion in 2024, slightly surpassing analyst expectations. The bank also initiated a £1 billion share buyback as part of its strategic overhaul to reduce costs by £2 billion by 2026 and focus on profitable consumer and lending operations.

Barclays stands to gain market share in the UK following HSBC’s announcement of exiting M&A and equity capital markets businesses in Europe, the UK, and the US. The bank has also recovered from a recent tech outage and is navigating challenges posed by the UK economy and reduced IPO activity on the London Stock Exchange.

The Bank of England’s recent rate cut and projected further trims in 2025 could impact bank profits by tightening the spread between loans and deposits. UK Finance Minister Rachel Reeves is pushing for a balance between competitiveness and consumer protection in the financial sector, with expectations for a new strategy to be released in the spring.

Read more: Barclays earnings Q4 2024