Barclays share price has been lagging UK’s FTSE 100 index for the past two days amid a disappointing full-year earnings report. The stock ended Wednesday’s trading session 7.86% lower at 172.60p. The BARC stock has slipped more than 8% in the past week.
Barclays share price was in the spotlight earlier on Wednesday as the bank reported its full-year earnings for 2022. The British bank reported a full-year net profit of £5.023 billion, beating consensus estimates of £4.95 billion.
Despite the better-than-expected profits, the British bank suffered a 19% decline from the previous year’s £6.2 billion net profit. The bank’s annual profits were hit by a costly trading blunder in the US and surging costs.
Barclays reported a 14% fall in full-year pre-tax profits as earnings. Pre-tax profits for the fourth quarter came in at £1.31 billion, short of a consensus estimate of £1.5 billion, while full-year pretax profit fell to £7 billion.
The fall in the bank’s earnings sent Barclays share price down 9% -on track for their biggest one-day fall since the early stages of the coronavirus pandemic.
Barclays Share Price Forecast
Barclays share price had been on a slow but steady uptrend for the past few weeks before breaking out lower on Wednesday. The BARC stock price has been hovering below the important support at 174.40p. On the daily chart, it has moved below the 25-day moving average and is trading along the 50-day moving average. Its Relative Strength Index (RSI) has slipped below the overbought level.
Therefore, Barclays’ share price is likely to continue falling as investors continue chewing on the disappointing earnings. In the medium term, sellers will be eyeing the support level at 162.90p. On the flip side, a move past the 25-day moving average will invalidate this view.