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What the analysts said in response to Barclays announcements



Barclays eagerly anticipated 2008 earnings showed decent income momentum and a slightly better capital position, offset by cautious guidance on asset quality and margins. We think investors were mostly relieved by the lack of new surprises from the balance sheet. Merrill Lynch.



Barclays shares do not look expensive in our opinion, but the near term earnings outlook remains highly uncertain and the debate on balance sheet leverage and credit marks are unlikely to be curtailed by this announcement. UBS.



Given the pre-announcement, stated earnings are not a surprise. JP Morgan.



Barclays has provided substantial disclosure on credit market assets and the asset quality of its customer loans. It remains to be seen whether a comparison can be made with competitors, particularly on the loan book. Cazenove.



The headline PBT (profit before tax) figures were above our expectations, which is positive. Nomura.





What the media said



Barclays stages a fight-back

Daily Mail – Alex Brummer



When it comes to courage no one can fault Barclays top team of John Varley, Marcus Agius and Bob Diamond. While the other bankers hid behind high walls, dodging questions from their critics, at least the Barclays team are taking the shots…The reality at Barclays is that in a year when most of the world’s banks made huge losses Barclays remains an exception.



Varley deserves credit - and not just for losing ABN Amro

Evening Standard – Chris Blackhurst



At some point, the City is going to have to start believing Barclays. Until now, during this crisis, the sceptics have been waiting for the true horror to emerge. But as the months have passed it simply hasn’t happened. Famously, the bank has not had to go cap in hand to the taxpayer. All in all, Varley and his chairman Marcus Agius are entitled to feel they should be getting acclaim – not raised eyebrows or nudges and winks.



Certainly, judging by the rise in the share price today, that is the prevailing wider mood. Barclays is right to draw a line between itself and the loss-making banks.



Barclays proves there is still hope for City

City AM – Allister Heath



It is high time that Barclays be recognised for what it has achieved. Its performance for 2008, announced yesterday, has dealt a devastating blow to the credibility of those who were convinced it was in as deep trouble as some of its rivals.



…Barclays must now tread carefully. It should refuse to take part in the government’s bad asset insurance scheme, which would erode its hard-fought independence. It should resist the temptation to gloat, especially with today’s Treasury Select Committee meeting set to humiliate many of its erstwhile competitors, especially Sir Fred Goodwin. As to the rest of us, we should all celebrate. There is still hope for the City and Britain’s finance industry.



In a drunken world at least it stayed upright

The Guardian – Nils Pratley



Is Barclays out of the woods?...Its risk managers showed a better appreciation of the noxious content of some of the liquids that fuelled the boom years. They reduced lending to the commercial property market, for example, at a relatively early stage…The fear of a colossal black hole has receded. Barclays, we could say, staggered last year, but it stayed upright and is moving in the right direction.



As bold as Barclays

The Times - Ian King



Barclays is convincing more City sceptics that its assessment of its structured credit positions is true and fair, hence yesterday’s share price rise.



Behind Barclays profit

The Wall Street Journal ( Europe )



Barclays had a lot to prove with its 2008 results…the bank’s riposte – contained in a 126-page report – strengthened chief executive John Varley’s claim that Barclays can survive without raising further capital.



Barclays launches big pay shake-up

Financial Times – George Parker and Peter Thal Larsen



John Varley, Barclays chief executive, acknowledged anger at banks’ decision to pay bonuses in spite of the credit crunch and the support from taxpayers for banks including the part-nationalised RBS and Lloyds. Mr Varley said bonuses to staff across the bank had dropped 48% last year.



Alistair Smith, Barclays Head of Media Relations, said: “Given the public attention on the issue, it's not surprising that many of the newspapers have focused on bonuses in their coverage. What is clear though is that Barclays profitability and the momentum in the business had some traction. We have a way to go before the media is convinced by our strategy, but we made progress yesterday.”