The FTSE 100 in contrast had a much better morning as its climbed 0.6% to 6134.
Barclays also said it is cutting its dividend from 6.5p per share for 2015 to 3p for 2016 and 2017 to help boost its capital stockpile.
Total income was marginally down to £8.726bn from £8.828bn in 2014 with the bank’s wealth division contributing £918m to this, down from £1.077bn.
Recently installed CEO Jes Staley is in the early stages of implementing a restructuring of the bank to “simplify” its business model.
“At the heart of Barclays strategy is to build on our strength as a transatlantic consumer, corporate and investment bank anchored in the two financial centres of the world, London and New York,” said Staley. One of the first steps in this will be selling off its Africa business over the coming two to three years, he said.
Major holders of Barclays shares among UK asset managers include Blackrock, Legal & General Investment Management and Schroders.
“These poor results have led the bank to accelerate its strategy to simplify the business, which include selling down a 62% stake in its Barclays Africa Group,” said Graham Spooner, investment research analyst at The Share Centre. “This may please investors who have been looking to the new chief executive, Jes Staley, to take some significant steps to strengthen its operations.”
“Investors will note that Barclays will pay a final dividend of 3.5p per share, giving a total of 6.5p per share for 2015 financial year,” Spooner continued. “With the sector still under a cloud, the share price close to a three year low and the uncertainty over the investment banking division, we view the stock as no more than a hold for the time being.”
“Alongside Q4 2015 results which we see as 33% worse than consensus, at first glance, we are encouraged by CEO Jes Staley’s medicine for a group which has now delivered results around break-even for four consecutive years,” said Investec analyst Ian Gordon. “Barclays has, sensibly in our view, been withdrawing from continental Europe as fast as possible, and in a reversal of policy, it now plans to reduce its stake in Africa.”
Elsewhere in the FTSE 100 Glencore shares fell 2.6% as it reported a 32% drop in full-year profits to $8.7bn from $12.8bn in 2014 due to ongoing writedowns related to the global mining slump.
