Opinions Paul Harris, CFA
Barclays Bank PLCBCSTOP PICKAug 14, 2014
Paul Harris, CFAStock price when the opinion was issued
As of Jun 23, 2026. Market Open.
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Premium contentPremium contentBest European bank? European banking is difficult, given negative interest rates. Best in class is Barclay's for its investing banking business or Lloyd's Banking. There should be more consolidation here, but it's difficult in Europe (look at ATD'B trying to buy Carrefour this month).
Likes it. They bought Lehman, which had investment banking but was really a bond house, so Dodd-Frank caused a lot of capital issues and restrictions. New management is doing a good job by sticking with investment banking and have a great retail franchise in the UK, and they exited businesses around the world that didn't work out. They're going all the right things, though Brexit creates uncertainty. Great credit card business. It will do well, but have to get past Brexit early next year.
Trades at about 0.6X Book and will be trading at about 7 or 8 times next year’s earnings. In their last earnings, their personal and commercial business was up a fair bit. They bought Lehman Brothers and took a lot of the fixed income business and put it into what they call a “bad bank” and are slowly disposing of it. They are really going back to their traditional retail business. They’re going to keep the investment bank, but are going to be a much more smaller bank giving a better return on equity.