Barclays Stock Has 20% Growth Potential

Barclays Stock Has 20% Growth Potential

Share to Linkedin LONDON, UNITED KINGDOM - 2021/01/31: Pedestrians walk past Barclays bank, a British multinational ... [+] investment bank and financial services company, in London. (Photo by May James/SOPA Images/LightRocket via Getty Images) The company reported $27. 9 billion in revenues for the full-year 2020 – marginally below the 2019 figure. While its Barclays UK and consumer, cards & payments units reported negative growth due to interest rate headwinds and lower consumer spending levels, the decline was almost offset by higher revenues in the corporate & investment bank division. The growth in corporate & investment bank was driven by a rise in sales & trading and investment banking revenues due to higher trading volumes and an increase in underwriting deals respectively. Further, the bank witnessed a significant buildup in provisions for credit losses from $2. 5 billion to $6. 2 billion in the year. That said, we expect consumer spending to see some improvement in FY2021, although the low-interest rates are unlikely to see a swift revival. Further, the higher trading volumes and underwriting deal volumes are likely to continue for some more months before normalizing with recovery in the economy. Overall, the above factors will likely enable Barclays'