On Feb. 22, 2018, Barclays PLC (BARC.L) released its 2017 earnings report with a £3.5 billion gross profit for 2017, an increase from its 2016 report of £3.2 billion. Nevertheless, the company faced various challenges in 2017 such as the US tax reforms and was forced to adapt its low banking income by restructuring its processes and products.
Barclays reported a net loss of over £1.9 billion after a £1.6 billion profit in 2016. A great part of this loss is due to a £901 million tax write-down in the US following the tax reform.
The company has showed confidence in its future results by restoring its dividends to £0.065. After the announcement was made, Barclays shares jumped 5.1 percent to £2.12, boosting investor confidence somewhat. According to Group CEO James Staley, the bank wants to continue investing in its technology and human capital to secure a healthy growth.
“I am confident in the capacity of this business to generate excess capital going forward, and it remains our intention over time to return a greater proportion of that excess capital to shareholders through dividends, and other means of capital distribution, including share buybacks,” he commented.