Thursday, 22 February 2018

Collapse of outsourcing giant Carillion cost Barclays £127m

The collapse of outsourcing giant Carillion has cost Barclays £127m.

The charge was one of a number of hefty one-off costs contained in Barclays' latest annual results.

Last year, the bank lost £2.5bn related to the sale of Barclays Africa Group and a £900m charge related to changes in US tax rules.

Including those costs the bank lost £1.9bn in 2017. But with one-off charges stripped out, underlying profits were £3.5bn, up 10%.

Carillion collapsed in January with debts estimated at £1.5bn.
It was the second-biggest UK construction company and Barclays was one of five key lenders to the company.

Barclays, along with HSBC, voted in favour of lending more money to Carillion just days before it collapsed. But other banks voted against, sealing the company's fate.

Barclays said the "bulk" of a £127m charge on its latest quarterly accounts related to Carillion.

However, it is thought that of the five big lenders to Carillion, Barclays had the smallest exposure.

BBC           News.

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