by Harry Davies on October 23, 2020

Barclays PLC Up 7.5%, Company Recovers as Bad Debt Charges Fall

Recent movements on the market show that the prices of a very famous British company, Barclays PLC are up 7.5%. The increase comes after a very hard several months for the company, as the virus affected the prices of the shares of the company a lot. In the third quarter, the company had reported a huge drop in provisions for bad loans. The initial huge impact of the coronavirus on the company has also lessened, as a result, the company has managed to draw much better profits than expected.

In the last three months, according to official information from ten companies, the UK bank took as much as £608m impairment charges. The number is definitely a lot higher than it was last year, however, the price is very much down from the first half of 2020. The first half of the year was very hard for many different parts of the economy.

As top stock brokers on the market announced, once the Covid-19 fist spread around the world, most of the investors started panicking which ended up in 2020 Stock Market Crash. Because of the situation, many companies like this one had a lot of problems.

Most of these companies are claiming that they are having a very hard time overcoming the challenges that were created during these times even today. However, as the current movements on the market indicate, Barclays was able to overcome some of the challenges and the situation is getting a little better for it.

Prices of Barclays of the Last Few Months

Barclays Up

As can be seen in the chart shown above, the prices of the company have been changing a lot recently. The Covid-19 pandemic had a huge effect on many markets around the world, and the impact of it can be seen on the chart of this company’s prices as well. First, in December, the prices of the shares of the company were up. However, it started going down as the virus first spread in China.

As the virus spread around the world, the prices of the shares of companies like Barclays went down. During the stock market crash of 2020, the prices of the shares of the company were very down. It got better over the next few weeks but went down again in April. After that, the prices were recovering for some time, but, as can be seen in the chart above, the situation got worse again once the second wave of the virus started.

As of now, the prices of the shares of the company are up, but experts are having a very hard time predicting the future of the prices of the company. As most of the experts are claiming, the shares of the company are very hard to predict because of the ever-changing situation. The further spread of coronavirus means that it could once again affect the prices of companies around the world, which will be very hard to overcome by the market.

Today, the company has announced the third-quarter income. The next profit and pretax profit were much higher than the market expected, despite booking a considerable amount of provisions. The total income of the company has increased to GBP5.20 billion. It was previously anticipated that this would decline to GBP4.85 billion, however, it managed to overcome the challenges that it was facing. Also, it has ended the period with a common equity Tier 1 ratio, which is a key measure of balance-sheet strength, of as much as 14.6%. Last year, the same number was just 13.8%.

Barclays PLC is a very famous British multination investment bank and financial services company. The company is headquartered in London, England, and in addition to investment banking, the company is also organized into four different businesses, such as personal banking, corporate banking, wealth management, and investment management.

As of now, the situation of the company stands at a place where it is worth investing in it. The P/E ratio stands around 17, which is a great number for investors. Also, experts are saying that as time goes, the prices of the shares of the companies will be able to increase again, which will create a very rewarding situation for investors. However, at this point, since it is very much unclear what will happen in regards to the Covid-19 situation around the world, it is almost impossible to tell how the prices of the shares of the company will change in the coming few weeks.

By Harry Davies

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