Barclays share price was the best performer in the UK’s benchmark FTSE 100 index on Thursday after publishing better-than-expected results for the first quarter. The BARC stock was trading 4.22% higher at 160.35p at the time of writing, building on its gains from its previous trading session.
BARC Outstrips Forecast
Barclays share price was in the limelight on Thursday as the company posted its earnings for the March quarter. The shares of the British lender surged in the wake of better-than-expected earnings for Q1. Barclays reported a net profit of £1.78 billion for the first quarter, ahead of analysts’ expectations of £1.43 billion and 27% higher on the YTD.
The bank reported an 11% jump in its income for the quarter to £7.2 billion. The bank’s growth was buoyed by higher net interest income in the UK and higher credit card balances in the US. Income from the bank’s consumers, cards, and payments division, skyrocketed by 47%, compensating for the 1% growth in the income of the large investment banking division.
The net interest margin for Barclays UK, which is a measure of the profitability of lending and borrowing, increased to 3.18%, down from 2.62% in the previous quarter. Pre-tax profit climbed 16% in the quarter to £2.6 billion. Barclays also announced that it had flagged £524 million for potential bad loans, down from £1.2 billion last year.
The results came in after a shaky period in the banking sector, following the collapse of several regional lenders in the US. Markets will be focusing more on US bank earnings this week after the First Republic Bank reported a $100 billion plunge in deposits in Q1.
Barclays Share Price Forecast
Barclays share price topped the FTSE 100 index on Thursday as its first-quarter earnings beat consensus analysts’ estimates. The BARC stock price is hovering slightly below the important resistance level of 162.90p. The stock has managed to move above the 25-day and 50-day exponential moving averages as highlighted on the daily chart. Its Relative Strength Index (RSI) has also moved higher.
As such, the BARC stock needs to clear 162.90 to continue rallying. A move past this level will have buyers targeting the next resistance level at 174.40p. However, a pullback below the support at 152p will invalidate the bullish view.