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Today (17 April), Barclays (LSE:BARC) shares are worth 134% more than they were in April 2021. It means someone who bought £5,000 worth five years ago would now be sitting on a paper gain of £6,746. If dividends are included, the return on the 2,645 shares would be even higher.
However, the same amount spent on the bankâs shares today would only stretch to 1,126 — some 1,519 fewer. Does this mean itâs too late to take a stake? Or could this amazing bull run continue? Letâs take a closer look.
Others have done even better
Although Iâm sure shareholders will be pleased with Barclaysâ recent share price performance, it has to be said that the four other banks on the FTSE 100 have done even better.
| Bank | Share price performance 18.4.21 to 17.4.26 (%) | Market cap at 17.4.26 (£m) |
|---|---|---|
| Standard Chartered | +264 | 39,772 |
| HSBC | +213 | 230,156 |
| NatWest Group | +188 | 49,692 |
| Lloyds Banking Group | +137 | 60,487 |
| Barclays | +134 | 60,451 |
Admittedly, Lloyds has only marginally outperformed the UKâs third-largest bank (by market-cap) but, nonetheless, investors have enjoyed a larger gain over the past five years.
The reason for this is probably due to the mix of Barclaysâ earnings. In 2025, 50.5% of its profit before tax was derived from its investment banking division, where returns can be volatile.
Earnings of the other banks are more concentrated in day-to-day transactional banking, mortgages, and other loans. The profit from these activities tends to be more stable and predictable. And they’re influenced more by interest rates. The post-pandemic rise in borrowing costs has helped improve the margin on traditional banking products and boosted earnings.
An attractive valuation?
In terms of valuation, Barclays has the second lowest historic (2025) price-to-earnings (P/E) ratio â beaten only by NatWest â and the lowest price-to-book (PTB) ratio.
The latter’s particularly interesting because Barclays had a book value over £30bn higher than Lloyds at the end of 2025. In fact, its total assets were a staggering £600bn more.
Yet, investors value Lloyds more highly. It has a P/E ratio of 14.8, compared to 9.4 for Barclays. Their PTB ratios are 1.3 and 0.8 respectively.
Clearly, investors view Barclaysâ vast investment portfolio as high(er) risk and place less of a premium on its earnings. As a result, its shares trade at a discount to Lloyds and most of its peers.
My view
Even though I acknowledge that the blend of its earnings means it should be viewed differently to the Footsie’s other banks, I think investors are taking an overly cautious view when it comes to valuing Barclays.
Of course, a global economic slowdown would be bad news for its £362bn loan book. Increased financial distress is likely to lead to a rise in defaults and a general downturn in new business. And a recession could affect the performance of its investment arm.
However, as experienced investors know, global instability can bring about some lucrative opportunities. In particular, a chance to buy shares in some great companies at a knock-down price. Iâm sure Barclaysâ investment bankers have already taken advantage of market nervousness following recent events in the Middle East.
Personally, I think the same could apply to Barclays itself. Indeed, its share price is now 21% below its 52-week high. I believe it’s a high-quality business and thatâs why I think itâs a stock to consider.
The post 5 years ago, £5,000 bought 2,645 Barclays shares. But how many would it buy now? appeared first on The Motley Fool UK.
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HSBC Holdings is an advertising partner of Motley Fool Money. James Beard has positions in Barclays Plc. The Motley Fool UK has recommended Barclays Plc, HSBC Holdings, Lloyds Banking Group Plc, London Stock Exchange Group Plc, and Standard Chartered Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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