Movement Alert|Barclays PLC Falls 5.41% in Regular Trading, Earnings Beat Marginal as Cost and Credit Impairment Pressures Weigh

Market Focus07-29

On July 28, Barclays PLC fell 5.41% in regular trading, trading at $26.992/share, with turnover of $230 million. The decline came after the bank released Q2 earnings that only marginally beat expectations while revealing rising cost and credit quality concerns.

Barclays reported Q2 EPS of $0.90, narrowly beating the $0.89 consensus, while revenue of $11.184 billion edged past the $11.110 billion estimate. H1 pre-tax profit rose 17% to GBP 6.1 billion, with Q2 equity trading revenue surging 45% year-over-year. However, Q2 operating costs climbed to GBP 4.52 billion, exceeding market expectations, and credit impairment charges rose 22% year-over-year to GBP 571 million. Although the bank raised full-year revenue guidance from GBP 31 billion to GBP 31.5 billion and announced a share buyback plan, the limited earnings beat suggested prior expectations were already fully priced in, triggering profit-taking in a classic sell-the-news reaction.

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