- Barclays shares saw a slight retreat following the recent HSBC earnings.
- The company will announce its quarterly earnings on Wednesday,
- Barclays will benefit from high rates.
Barclays’ share price noted a slight pullback on Tuesday as the marketplace waited for the quarterly results. BARC shares retreated to 146.56p – slightly beneath this week’s peak at 150p.
Barclays Results Ahead
Barclays is a renowned banking group operating in around 40 countries globally. Its primary market is in the United Kingdom, offering corporate and retail banking services. Moreover, the firm boasts massive operations in the United States, rendering services such as wealth management and investment banking.
Barclays boasts more diversification than British rivals such as NatWest and Lloyds. Thus, the company’s corporate and retail lending business will likely benefit from the soaring interest rates in the United Kingdom and other markets.
Meanwhile, a sharp decline in investment banking will likely dent the company’s outcomes. Goldman Sachs confirmed (last week) that its investment banking earnings plummeted by 57% during the quarter.
Morgan Stanley’s investment banking revenue declined by more than 55%. Also, more diversified banks such as the Bank of America and JPMorgan saw their revenue increase in the quarter. Economists expect Barclays’ Q3 income increased to 5.9B pounds, whereas its credit impairment increased to more than 330M pounds.
On the profitability front, analysts predict declined profit after tax of 1.4B pounds. They anticipate the closely-followed cost-income ratio to stand at 64% and the Common equity tier-one ratio of 13.8%. Barclays share declined on Tuesday, following massive results by HSBC.
Its overall interest income increased by a 3rd to $8.6 billion amid soaring interest rates. The stock declines sharply due to the weak sterling warning and its management shake-up.
Barclays Share Price Prediction
Should anyone buy Barclays shares? The 24hr chart indicates the stock plunged to this month’s low of 132p – the lowest since February 2021. Meanwhile, the stock rebounded recently to trade at 146p, overcoming the crucial resistance of 138.60p.
Also, the stock dipped beneath the 25 and 50 Moving Averages, whereas the RSI (Relative Strength Index) moved briefly beneath the 50-neutral. The shares created a triple top setup near 170.82p – a bearish signal. Thus, BARC will likely decline to the 138.60p support after the earnings.