Among the key news on UK stocks, Barclays PLC (GB:BARC) announced its plans to save £100 million ($127 million) in its UK Corporate Banking business by 2026. This is part of the bank’s overall plan to boost the lending business of its underperforming UK division. Barclays shares gained 1.12% in yesterday’s trading session.
Barclays is one of the top four banks in the UK, catering to 20 million retail customers and 25% of corporates in the country. Earlier in February, the bank announced the reorganization of its structure into five divisions (Barclays UK, Barclays UK Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank, and Barclays US Consumer Bank) to streamline its operations and enhance transparency.
Barclays Overhaul and Cost-Cutting Efforts
According to Barclays’ investor presentation, the bank now aims to expand its lending operations with corporate clients. The bank’s corporate lending business is currently lagging behind its competitors. At present, 35% of its corporate clients borrow from the bank. The bank plans to improve this business by lowering prices on some loans to compete more effectively while ensuring optimum risk. It also aims to boost its income by enhancing cross-selling efforts for its products.
Additionally, the bank aims to achieve its cost-cutting targets by combining its five online access portals for clients into a single platform.
Speaking of cost-cutting, Barclays is targeting savings of £2 billion by 2026 as part of a major strategic overhaul announced in February 2024. Under this plan, Barclays aims to return £10 billion to shareholders between 2024 and 2026 through dividends and share buybacks. This marks a turning point for the bank, signaling efforts to improve returns after a period of management changes and underwhelming performance.
Is Barclays a Good Share to Buy?
On TipRanks, BARC stock has received a Strong Buy consensus rating, backed by nine Buys and one Sell recommendation. The Barclays share price forecast is 262p, which is 27% higher than the current trading level.
