Barclays Plc experienced an unexpected 8% drop in profits for 2022 after the bank missed its revenue estimates in every major business line. The company’s stock fell by 9.8% following the announcement.
While trading droughts and a poorly performing finance portfolio contributed to declining revenues, the British multinational bank was faced with an array of legal issues, including conduct and litigation charges. In addition to overselling U.S. investment products, Barclays also looked to reach a settlement due to its staffers’ usage of unapproved messaging channels.
The bank recently announced its plan to buy back up to £500 million of shares during the first fiscal quarter of 2023. Even as it looks to do so, Barclays faced scrutiny as other European banks boost their payouts.
Other factors that strained Barclays’ profits include a 6% rise in total costs to £4 billion during the first three months of the year. Barclays remains insistent, however, that it will continue spending more on its corporate and investment banking unit as well as its consumer cards and payments division, which includes JetBlue Airways Corp. and Gap Inc. as partners.