Trending: Barclays's Strategy Update, Returns Plan Please Investors

1249 GMT - Barclays is among the most mentioned companies across news items over the past six hours, according to Factiva data. The British lender on Tuesday unveiled its mid-term strategic plan in a bid to boost its lagging share price and keep shareholders happy with GBP10 billion in returns--or around 40% of its market capitalization--promised over three years. Markets welcomed the news, which provided "a fresh wave of optimism" according to interactive investors, sending the stock around 6% higher in London. Trading at around 158 pence, shares were at their highest price since mid-October, just before shares tumbled on the back of disappointing third-quarter results. Barclays expects to make GBP30 billion in income in 2026, supporting a return on tangible equity greater than 12% that year which will also be achieved through GBP2 billion in cost savings. These ambitious targets overshadowed a weaker fourth quarter, for which it posted a loss given a slightly heavier-than-expected structural action cost charge of GBP927 million as well as a softer performance in its investment bank. Barclays also reorganized its business divisions into five segments, from three currently, as it focuses on growing retail and business lending in the U.K. and trims the weight of the capital-consuming investment bank. Dow Jones & Co. owns Factiva. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

February 20, 2024 08:04 ET (13:04 GMT)

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