Barclays has been downgraded to “Underperform” by BofA Global Research on Thursday due to uncertainty regarding the financial group’s restructuring and near-term risks to capital distributions.
The UK bank said earlier this week it would initiate another restructuring round in the upcoming months, as it seeks to alleviate the effects of margin pressure from competition in the savings market.
“A potential material, but unspecified, restructuring charge to deliver unspecified benefits over an unspecified time period adds to uncertainty about Barclays strategy and financial target,” BofA analysts wrote in an investor note, cited by Reuters.
“This could improve longer-term profitability, but seems unlikely to address the core issue of c70% of capital tied up in the lower returning Corporate & Investment Bank.”
The shares of Barclays PLC (BARC) were last losing 1.82% (2.42 pence) to trade at 130.86 pence in London on Thursday, as they extended the losses from the previous six market sessions.
The financial group’s total market cap now stands at GBP 22.715 billion.
The shares of Barclays PLC have retreated 17.45% so far this year, following another 15.23% loss in 2022.
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