The FTSE 100 slips after poor Barclays results

Barclays’ fall in yearly profit caused shares to fall, resulting in the FTSE 100 edging lower. However, the index’s losses were partially offset by a drop in the pound, as data revealed a greater-than-expected easing of domestic inflation.

Despite falling as much as 0.4pc, the FTSE 100 has since reduced losses to 0.1pc following a record high in the previous session. Meanwhile, Barclays reported a 14pc decline in annual profits, causing the bank’s shares to drop as much as 7.6pc to the bottom of the index.

The pound also decreased after the data showed a decrease in British consumer price inflation and underlying measures of inflation that are closely monitored by the Bank of England.

On the other hand, the domestically-focused FTSE 250 midcap index was subdued, edging 0.1pc lower and currently trading flat on the day. In positive news, investment platform Hargreaves Lansdown saw a 4.4pc gain after reporting a 31pc increase in its half-year profit before tax.

Barclays’ fourth quarter results failed to meet analyst estimates, causing its shares to drop by as much as 7.1pc. As a result, it is currently the weakest-performing stock on the FTSE 100 index this morning.

Barclays’ CEO, CS Venkatakrishnan (known as Venkat within the group), received a cash and bonus payout of £5.2m last year and is expected to receive a fixed pay rise of 3.4pc this year, as revealed by the company.

Additionally, the finance director, Anna Cross, earned £2.1m during the year and is set to receive a 4.3pc increase in fixed pay this year.

These increases come despite a drop in profits, as the lender reported less activity in its investment banking business due to decreased investor confidence and a shortage of company deals in 2022.

Despite this, Mr Venkatakrishnan stated that Barclays had performed well in 2022, with every business delivering income growth and the group’s overall income up by 14%. He added that while they remain cautious about global economic conditions, they see growth opportunities across their businesses in 2023.

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