7 Best European Bank Stocks To Invest In

02. Barclays PLC (NYSE:BCS)

Number of Hedge Fund Holders: 20

Barclays PLC (NYSE:BCS) continues to demonstrate strong operational performance and financial resilience, positioning itself favorably for sustained growth. The bank is making significant strides towards achieving its ambitious targets outlined in its three-year strategic plan. With a focus on improving returns and enhancing shareholder value, Barclays is on track to surpass its return on tangible equity (RoTE) goal of 10% for 2024, having achieved 11.1% in the first half of the year. The bank’s solid performance is reflected in its increased net interest income guidance for 2024, now expected to reach approximately GBP11 billion, up from GBP10.7 billion. This upward revision is driven by favorable interest rate dynamics and effective cost management. Barclays PLC (NYSE:BCS) has also shown remarkable progress in managing expenses, with a cost-to-income ratio of 62% for the first half of the year and a commitment to achieving GBP1 billion in cost savings by year-end.

Barclays PLC (NYSE:BCS) strategic focus on capital distribution is evident through its substantial shareholder returns. The bank has announced a GBP1.2 billion payout for the first half of 2024, including dividends and a buyback program, as part of its broader plan to return at least GBP10 billion to shareholders by 2026. This move underscores Barclays’ commitment to delivering value to its investors while maintaining a robust capital position, with a CET1 ratio of 13.6%, well within its target range.

In terms of divisional performance, Barclays PLC (NYSE:BCS) UK and Private Banking & Wealth Management stand out with impressive returns on tangible equity of 22.3% and 30.8%, respectively. The UK Corporate Bank has also delivered strong results with an 18% RoTE, reflecting its effective client relationship strategies and investment in growth. The bank’s investment banking and markets divisions have demonstrated stability and growth, with significant increases in fee income and positive performance in securitized products. Overall, Barclays PLC (NYSE:BCS) disciplined execution of its strategic initiatives, combined with its strong financial metrics and shareholder-focused approach, makes it a compelling investment opportunity for those seeking exposure to a well-capitalized and growth-oriented banking institution.

The number of hedge funds in Insider Monkey’s database owning stakes in Barclays PLC (NYSE:BCS) fell to 20 in Q2 2024, as compared to 22 in the preceding quarter. The consolidated value of these stakes is nearly $0.13 billion. Among these hedge funds, Jim Simons’s Renaissance Technologies was the company’s leading stakeholder in Q2.