Barclays PLC (LSE:BARC) full-year results were broadly in line with expectations and were accompanied by promises of further generous cash returns, so a share price fall of 6% at one point in the morning seemed harsh.
Analyst Gary Greenwood at Shore Capital described the numbers as broadly in line with consensus expectations, with medium-term guidance reiterated and the announcement of a further £1 billion share buyback also as expected.
He noted that Barclays shares had been "strong into the results" and, with no earnings upgrade, this was perhaps what was behind the market reaction.
AJ Bell investment director Russ Mould dug out the old stock market adage that "it is better to travel than to arrive", to reflect the share price slide.
"The shares had just hit their highest mark since 2010 and the full-year results for 2024 contained no real upside surprises, while an increase in loan losses in the fourth quarter put some investors on alert," he said.
However, the plan to return a further £7 billion to shareholders, or some 16% of its stock market capitalisation, "may be more than enough to keep patient shareholders interested", Mould said.
Greenwood also felt that the stock "continues to offer value" at 0.86 times tangible net asset value.
Looking ahead, the bank introduced new 2025 guidance, targeting a return on tangible equity (RoTE) of approximately 11%, just above the consensus estimate of 10.8%.
Management reaffirmed its target of over 12% by FY26 and more than £10 billion in capital returns to shareholders through FY24-FY26.
Shore Capital maintained its 'buy' rating, stating: "We see further upside potential in the shares based on continued delivery in line with management guidance" and indicating that it expects to raise its fair value on the shares to at least 360p from 345p.
Mould said Barclays' run-rate cash return of some 8% a year beats inflation and "compares nicely to the returns available from cash or UK government gilts".
"If the bank can keep this up and continue to stay out of trouble with the regulator, it could even be turning into the sort of boring, quasi-utility lender for which investors longed in the wake of the global financial crisis when egregious risk-taking across the industry led to disaster."
However, he said Barclays is "not there yet and is never likely to be that boring, quasi-utility because it is still fully committed to its investment bank".