By Elena Vardon

Barclays is scheduled to report results for the fourth quarter on Thursday. Here is what you need to know.

PRETAX PROFIT: The U.K. bank is expected to post pretax profit for the three months ended Dec. 31 of 1.62 billion pounds ($2.02 billion), according to a company-compiled consensus based on 16 analysts' estimates. This compares with the 110 million pounds reported for the comparable period the previous year, which was hit by restructuring charges.

TOTAL INCOME: The FTSE 100 lender's revenue is expected to come in at 6.71 billion pounds by the same consensus, compared with 5.60 billion pounds in the same quarter of 2023.

The increase is set to be driven by a better performance at its investment bank thanks to volatility in the quarter, which will partly offset lower results at its U.S. consumer business and a seasonal decrease in income from net interest and fees.

Barclays shares rose 19% over the fourth quarter. Since the start of 2025, they have gained around 16% and last closed at 306.5 pence.

WHAT TO WATCH:

--The results will be affected by Barclays's integration of Tesco Bank, which was completed on Nov. 1. Citi calculates that the deal will drive a one-off 500 million-pound gain and a 200 million-pound impairment charge on the quarterly print.

--The bank's income outlook for 2025 will be of interest. The market will also compare Barclays's net interest income for 2024 to its guidance of more than 11 billion pounds, which includes a 6.5 billion-pound contribution from Barclays UK.

--"The real focus will be on shareholder distributions and any shifts in Barclays's capital-allocation strategy, particularly towards its investment-banking operations," Morningstar analyst Niklas Kammer said. Consensus expects the group to declare a dividend of 5.7 a share and announce a 1 billion-pound share-buyback program.

--Its common equity Tier 1 ratio--a key measure of balance-sheet strength--is expected to be 13.6% at the end of the period, within its 13% to 14% target range for the year.

--The group is likely to reiterate its existing financial targets to 2026.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

February 12, 2025 08:23 ET (13:23 GMT)

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