Barclays PLC boss’s UK bullishness can’t lift share price

() investors were at odds with its chief executive Jes Staley over prospects for the bank today.

In an interview with the BBC, an exuberant Staley predicted the UK is heading for its biggest economic boom since the end of the Second World War.

“We estimate the UK economy will grow at its fastest rate since 1948. That’s pretty spectacular,” he said, with beneficial knock-ons for the country’s bank sector.

Barclays profits rebound to £2.4bn despite Barclaycard slump

Progress with vaccinations and £200bn of surplus cash sitting in customer and company bank accounts would fuel the growth, he said.

The tone, though, was in marked contrast with his remarks in the bank’s first-quarter results statement.

Profits more than doubled to £2.4bn as its bad debt charge fell by £2bn, but there was nothing like the bullish tone of the BBC interview.

Against a background of ‘headwinds’ persisting for the year, Staley said: “While evidence of recovery is encouraging, we have continued to take a cautious view of the impact of the pandemic on the business,” 

Commentators also highlighted the 10% rise in costs and lower-income across the board while the lack of guidance over a dividend also caused some nervousness.

Barclays did say it was setting aside 0.75p based on a 3p payment for the year, but said this should not be taken as a forecast.

Shares in the bank tumbled 6% to 177.16p though they have risen by a third since February.