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Barclays (LSE: BARC) The shares were one of the best performers on FTSE 100 Last year, almost doubling the value when investors looked at British banking positively.
This year, the ride was more falling. Few action rises forever in a straight line and maybe idly after such a spectacular run.
Barclays largely avoided scandals for financing the engine that is hit Lloyds Much more challenging, but a reminder that banks always have some risk. This includes the last Barclays IT failure.
Banks were also threatened with expectations that interest rates would continue to move this year. Lower rates may augment the demand for a mortgage and signal the end of the crisis of living costs. But they can also squeeze net interest margins. They measure the difference between what banks pay saving and borrowers fees, and this is a key profitability indicator.
Can this supply still develop?
And then there is Donald Trump. His broadly extensive trading tariffs have released a fresh wave of stock market variability, and British banks are not resistant.
However, there is a chance that Barclays Investment Bank can take advantage of all turmoil as commercial activities increases.
Despite this year’s ups and downs, Barclays shares increased by 9.55%this year. Someone who invested 10,000 pounds when the markets opened in January would now have 10,955 pounds. This is a neat profit of 955 pounds. Not bad, considering today’s uncertainty, but also almost amazing.
Barclays shares still look good, trading just over eight times profits. The price indicator for the book is only 0.6, which suggests that the shares are still underestimated.
Today’s dividend performance is 2.87%, which is now quite modest for the FTSE Financials campaign. This is partly because the price of the shares increased so much.
Looking to the future, analysts expect dividend performance to 3.13% this year and 3.49% next year. This is the beauty of dividend action, the growing income offers a nice buffer against inflation. Assuming that dividend growth is maintained.
Considering that Barclays withdrawals are covered more than four times by earnings, they must be one of the safest on FTSE.
In February, the management showed its commitment to shareholders, announcing further redemption of shares worth 1 billion pounds.
Dividends, growth and purchase
In February, Barclays recorded a 24% augment in profits before taxation at 2024 to 8.1 billion pounds, increased by a mighty augment in investment banking and loans in Great Britain.
He also raised his feedback 2025 on equity up to 11%. These results were published before Trump’s confusion, and the world is a completely different place today. The economy in Great Britain is also fighting for other reasons.
It is expected that operational margins will augment from 30.3% to 37.4%, which suggests further hopes for progress.
16 analysts covering Barclays have a median annual share price forecast of 358 pence. If they are right, this is a profit of just over 22% compared to today’s 292.45 pence.
Put the dividend and this is a potential total return of about 25%. Of course, forecasts are never set in stone, especially today.
Barclays shares increased by almost 45% in one year and 230% in five years. They can have further development opportunities. Larry Fink, CEO in Blackrock, just tilted British banks for a mighty return.
The world can finally wake up to the potential of Barclays. Only time will show. But I still think that shares are worth considering for long -term growth and income.