Barclays“(LSE: BARC) The price of the action dropped after publishing the results of 2024 on Thursday (13 February), but these numbers look quite good to me.

Are the shares still much below the accounting value, or should investors consider buying immersion?

Solid results provide support

The profit before Barclays tax increased by 24% to 8 108 million GBP last year, slightly above the broker forecasts. Shareholders receive a 5% enhance in dividend, and also benefited from 1.8 billion pounds of redemption over the past year.

I am not always a buying fan, but Barclays bought his shares below his accounting value. For a robust business, this can be a good way to enhance the stock price. Having a smaller number of shares in circulation increases the company’s accounting value per share, which can enhance the price of shares.

Important accounting value of Barclays per share increased by 8% to 357 pens last year. This is over 20% above the stock price at the time of writing. The head of CS Venkatakrishnan is also planning more purchase for 2025.

What to worry about

One of the areas that currently causes stress for lenders in Great Britain is motor finance – car loans. Barclays stopped operating in this area in 2019, but the bank admits “Historical operations before this time” This can be influenced.

The investigation of the British regulatory body on this sector is underway and nobody knows what the result will be. But a rival Lloyds (much larger engine sector lender) has already put down 450 million GBP.

Another risk is the long -term variability of profits from the Group Investment Bank. At the moment, this branch works well when it regains the activity of the transaction. Last year, profits increased by 18% to 3.8 billion GBP – almost half of the total group. But investment banking tends to periodically go through frail patches.

My verdict

I am encouraged by what I see in Barclays. Most importantly, I am glad that the most essential bank profitability indicators are improving.

The return from concrete capital (Rote) increased to 10.5%, from 9% in 2023. Management focused on Rote Rote of 11% for 2025 “Larger than 12%” for 2026

This is essential because it is probably the best measure, how much surplus earns on generating a bank every year. All others are equal, higher returns from capital mean that the bank will be able to invest more in growth or finance greater refunds of shareholders.

We see this impact, looking at the ratio of CET1 Barclays, which is a regulatory measure of the surplus of capital. Despite the return of 3 billion pounds of capital by buying out and dividends, the CET1 Bank indicator has hardly changed to 13.6%, compared to 13.8% a year earlier.

If Barclays can still achieve its profitability goals, I think that shares should trade closer to their accounting value over time. Perhaps even over it. As I write, shares trade almost 20% below their accounting value of 357 pence, compared to the forecast in the amount of 2025 to profit (p/e) of seven. There is also 3.2% dividend performance.

Barclays still looks decent to me and I will tranquil the latest results of the bank. I think that shares are worth considering as a long -term purchase.