Barclays hikes dividends on massive annual profit

Barclays is returning 2.5 billion pounds to shareholders in 2021 via dividends and buybacks, Reuters reports.

The hike in dividends is a consequence of Barclays’ annual profit that nearly trebled.

Barclays was propped by plunging bad loan charges and the strong performance of its investment bank.

The British lender reported profit before tax for 2021 of 8.4 billion pounds ($11.42 billion), up from 3.1 illion pounds a year ago and above estimates.

Barclays said it would buy back 1 billion pounds of its own shares and increase its full-year dividend to 4 pence per share, resulting in a total payout for the year of 2.5 billion pounds.

Reuters reports that Barclays is targeting two digitisation projects such as a ‘buy now, pay later’ consumer finance offering with Amazon in Britain and Germany; and focusing on the transition to a low carbon economy.

Despite the improved performance, the lender warned that soaring inflation in its markets would impact its finances.

Barclays said its adjusted costs would be more than 12 billion pounds this year, partly as a result of higher pay for its bankers. The lender’s bonus pool for 2021 increased 23% to 1.9 billion pounds.


Leave a Reply

Your email address will not be published. Required fields are marked *