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Barclays Share Price Outlook Amid Strong FICC Growth

Barclays share price rose on Wednesday morning after the company announced strong revenue growth. The stock jumped to a high of 152p, which was the highest level since October 5 of this year. It has risen by more than 12% from its lowest level this year. It remains about 30% below the highest level this year.

Barclays earnings review

Barclays had a strong quarter despite the relatively difficult macroeconomic challenges. Its income rose to 6.4 billion pounds, which was higher than the 5.5 billion it made in the previous quarter. Its cost to income ratio retreated to 60% while it CET1 ratio rose to 13.8%. In total, its profit after tax was over 4.6 billion.

Notably, Barclays had strong results across all segments. Its Corporate and Investment Bank revenue rose by 5% in the quarter, helped by its trading divsion. The Fixed Income Commodities and Currencies (FICC) business saw its revenue rise by 63%. 

Investment banking fees slipped by 54%. On the other hand, its CC&P business rose by 54%, helped by US cards balance growth. Its Barclays UK revenue rose by 17% because of higher interest rates. At the same time, Barclays was helped by the fact that between 40% and 45% of its revenue is in US dollar. The CEO added that:

“We delivered another quarter of strong returns, and achieved income growth in each of our three businesses1, with a 17% increase in Group income to £6.4bn1. Our performance in FICC was particularly strong and we continued to build momentum in our consumer businesses in the UK and US.”

Other European banks have done well. On Tuesday, HSBC said that its revenue continued growing last quarter as interest rates rose. Deutsche Bank, the giant German bank, crushed market expectations as its net income jumped to over $1.1 billion. Its revenue rose by 15% from a year ago to 6.92 billion euros.

Barclays share price forecast

The hourly chart shows that the BARC share price has been in a slow bullish trend in the past few days. In this period, the stock has managed to move above the 38.2% Fibonacci Retracement level. It has also formed an ascending channel that is shown in black. The shares have also risen above the 25-period and 50-period moving averages.

Therefore, the stock will likely continue rising as buyers target the 61.8% Fibonacci Retracement level at 160p. The stop-loss of this trade will be at 147p.

Barclays share price