Barclays Reports Fourth Quarter Loss Amid Strategic Update

British bank Barclays revealed a net loss of £111 million in the fourth quarter of 2023, equivalent to $139.8 million, marking a significant development as the bank unveils its first major strategy update since 2016. This announcement comes as Barclays initiates a substantial restructuring effort to combat declining profits.

Analyst Expectations Unmet

According to data from LSEG, analysts surveyed by Reuters had anticipated a net profit attributable to shareholders of £60.95 million for the quarter. However, Barclays’ reported loss underscores the challenges the bank faces as it undertakes strategic reforms to address its financial performance.

Full-Year Profit Decline

Barclays reported a full-year net profit of £4.27 billion, a decrease from £5.023 billion in 2022. This figure fell short of consensus expectations, which had projected a net profit of £4.59 billion for the year.

Share Buyback and Future Plans

In response to its financial results, Barclays announced an additional £1 billion share buyback. Furthermore, the bank intends to outline a new three-year plan aimed at enhancing operational and financial performance. The CEO emphasized these forthcoming initiatives in a statement issued on Tuesday.