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Saturday, April 21, 2012

Barclays profits first quarter outlook 2012

Barclays profits first quarter outlook 2012 ; Barclays is set to announce profits for the first three months of the year of £2bn this week as it attempts to convince investors its financial performance merits the £17.7m compensation package it has controversially awarded chief executive, Bob Diamond.

City analysts are forecasting that profits will have come roaring back in the first quarter from £1.66bn in 2011 to little over £2bn this year on the back of a resurgence in earnings from its investment banking arm, as well as a continued increase in retail banking profits.

The bank will be hoping the announcement of healthy first quarter earnings on Thursday will help calm investors ahead of what is expected to be a fiery annual general meeting a day later, where approximately 15pc of shareholders are expected to vote against its remuneration report and the re-election of Alison Carnwath as chairman of its remuneration committee.

Last week, Barclays took the surprise step of offering new performance hurdles on Mr Diamond bonus, however many of the bank’s investors remain unhappy that it has not addressed their concerns over a controversial £5.75m “tax equalisation” payment made by the lender to settle a tax bill incurred by the banker when he relocated from New York to London to take charge at the start of last year.

However, the move was not enough to placate a significant number of investors.
Threadneedle Investments, which holds a 0.4pc stake in Barclays worth in the region of £103m, is the latest investor to indicate it is to vote against the pay report at this week’s meeting, adding its name to a list which includes the likes of Fidelity and Scottish Widows. The Sunday Telegraph was first to reveal the scale of opposition against the bank a fortnight ago.

Barclays has reported a 3% fall in profits to £5.9bn for last year, hit by a slowdown at its investment bank arm. The bank also said the bonus pool at the investment banking division was down 32% to £1.5bn in 2011.

Barclays' total bonus pot for the year will now be about £2.15bn, down 25%, with cash bonuses capped at £65,000. The average bonus payout for a Barclays' employee fell 21% year-on-year to £15,200.

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