Bank reports quarterly pre-tax loss of £236m, down from profits of £1.68bn in the same period last year
Barclays swung to a loss in the first quarter as further payment protection insurance (PPI) charges and a £1.4bn settlement with the US Department of Justice knocked profits.
The UK bank reported a pre-tax loss of £236m for the three months to 31 March, having reported profits of £1.68bn in the same period last year.
Stripped of litigation and conduct charges, pre-tax profits rose 1 per cent to £1.7bn, while attributable profit came in at £1.2bn.
- Read more
Barclays boss Staley stronger than he looks in face of activist attack
The bank was hit by a $2bn (£1.4bn) settlement reached with the US Department of Justice earlier this month, related to the sale of mortgage-backed securities in the lead-up to the financial crisis.
Chief executive Jes Staley said: “While the penalty was substantial, this settlement represents a major milestone for Barclays, putting behind us a significant, decade-old legacy matter.”
Barclays booked an extra £400m to cover PPI charges after seeing a higher number of complaints over the quarter.
Read more
- Barclays: Can whistleblowers be confident after FCA warns CEO Staley?
- Barclays boss Jes Staley to be fined over whistleblower scandal
- Barclays agrees to pay $2bn to settle US fraud case
- Activist investor Sherborne acquires voting rights in Barclays
While the charges affected Barclays' CET1 levels – referring to the capital cushion that underpins a bank's loans – Mr Staley said he was confident in the lender's position.
“This has been a significant quarter for Barclays, one in which we have shown that our new operating model and our portfolio of diversified, profitable businesses are capable of producing improved returns for shareholders.”
Barclays shares initially slumped 1.5 per cent at the start of trading but recovered by mid-morning to around 1.2 per cent.
Laith Khalaf, a senior analyst at Hargreaves Lansdown, said: “There's a lot not to like about Barclays' latest results, although many of the factors hampering the bank are one-off items which don't speak for the future prospects of the business.
“Stripping out these setbacks, performance has been a disappointment rather than a disaster, which the headline figures by themselves might suggest.”
The PPI charges dragged on returns from its UK business, which suffered a 17 per cent fall in pre-tax profits to £581m, while its international business saw pre-tax profits rise 4 per cent to £1.4bn.
- More about:
- Barclays
Reuse contentRead the Original Article
