Barclays noticed new home loans tumble by 1 / 4 to £22.7bn from a 12 months in the past, hit by “subdued mortgage lending amid lower market demand,” stories the retail and funding financial institution.
However, its home mortgage e-book slipped simply 0.9% to £160.9bn, following the completion of its buy of Kensington Mortgages final March, which included a £2.2bn mortgage portfolio.
The lender stated in its full-year outcomes: “New home loan bookings in 2023 decreased 25% to £22.7bn and the 90-day arrears rate increased to 0.2%, mainly driven by economic conditions that resulted in general mortgage market suppression, including higher mortgage payments as rates continued to rise and increased cost of living factors in line with inflation in 2023.”
Overall, the financial institution posted a 6% fall in annual revenue to six.6bn, as greater rates of interest and powerful bank card efficiency had been offset by restructuring prices and mortgage margin strain. Profit was in step with analyst’s forecasts.
The lender additionally promised to chop £2bn of prices from its operation, return £10bn to shareholders by 2026, and put money into its high-returning UK retail financial institution.
Barclays chief government C. S. Venkatakrishnan stated the agency “delivered [a] solid performance against a mixed macroeconomic backdrop”.
AJ Bell funding director Russ Mould provides: “The banking sector received an preliminary increase from the rising rate of interest atmosphere as that created a possibility to make extra money on loans.
“Yet, the sector has misplaced momentum of late because the market begins to cost in rate of interest cuts.
“Like many of its peers, Barclays is a big juggernaut of a company where it is very hard to make changes quickly.”
