Barclays bank released its financial results for 2022, showing the bank chalking up more income as interest rates rose. 

Barclays bank delivered a profit before tax of £7 billion ($8.4 billion) in 2022 and a return on tangible equity of 10.4 per cent, with total capital distributions equivalent to about 13.4p per share.

C S Venkatakrishnan, Barclays group chief executive, said: “Barclays performed strongly in 2022. Each business delivered income growth, with group income up 14 per cent.”

“We achieved our RoTE target of over 10 per cent, maintained a strong Common Equity Tier 1 capital ratio of 13.9 per cent, and returned capital to shareholders. We are cautious about global economic conditions, but continue to see growth opportunities across our businesses through 2023,” he continued.

Outlining the 2022 performance highlights, Barclays said that group attributable profit reached £5 billion and RoTE 10.4 per cent, with all operating divisions delivering double-digit returns. Group profit before impairment reached £8.2 billion, up 9 per cent year-on-year and group income was £25 billion, up 14 per cent year-on-year, the bank continued.  

Barclays UK income also increased by 11 per cent primarily driven by the rising rate environment. Group operating expenses were £16.7 billion, reflecting £1.6 billion of litigation and conduct charges.

The group no longer discloses the results of its wealth, private banking and investments businesses, as it did in the past. 

Shares in the lender were down 9 per cent around 13:00 GMT yesterday; media reports (Financial Times, other) said analysts were unimpressed by the bank's targets and guidance for performance in 2023, in particular its net interest margin.

Outlining the Q422 performance highlights, Barclays said attributable profit was £1 billion and RoTE 8.9 per cent, with profit before impairment of £1.8 billion, up 29 per cent year-on-year with positive cost.

Group income was £5.8 billion, up 12 per cent year-on-year including the benefit from FX, with strong performances in Barclays UK and CC&P, the bank said. Within CIB, strong performances in Global Markets and Transaction banking were more than offset by reduced income in Investment Banking and Corporate Lending Group operating expenses were £4 billion, up 6 per cent year-on-year, reflecting the impact of FX, inflation and investment in the business, the bank continued.

Looking at 2023, the bank targets RoTE greater than 10 per cent whilst diversified income streams continue to position the group well for the current economic and market environment including higher interest rates. In 2023, Barclays UK net interest margin is expected to be greater than 3.2 per cent.