Barclays PLC – LON:BARC
Share Price – £1.56
Market cap – £26.8bn
Barclays announced Q2 results yesterday and broadly speaking my expectations were met, with management meeting their own guidance.
- Core RoTE of 11%
- CET1 ratio increased to 11.6%
- Tangible book value up to £2.89
- Cost/income ratio down to 65%
With the share price still near 52 week lows, it seems the market as a whole isn’t convinced at the turnaround. For me, the market still has an overly pessimistic view of Barclays. Management are 1/4 of the way through their restructuring plan, and are on track to meet their targets. Vigilance is required though, as my original estimate for roughly £5bn in core earnings in a clean year has slipped slightly to about £4.7bn. For now, I am happy to take advantage of the volatility in the market to buy stock at around a 50% discount to tangible book value.