Thursday, 2 August 2018

Barclays profits hit by £2bn of costs for the first half of the year

Litigation costs and settlements have made a big dent in Barclays' profits for the first half of the year.

Pre-tax profits fell from £2.3bn to £1.6bn after the bank paid out about £2bn, including a £1.4bn settlement with the US Justice Department.

But without the charges, pre-tax profits jumped by 20% to £3.7bn, with the UK arm seeing a 30% rise to £826m.

Boss Jes Staley called the figures "strong", with the bank starting to show "its true potential and value".

The charges that knocked the profits in the six months to 30 June also included a £400m provision for mis-selling payment protection insurance.
Total income for the period was flat at £10.9bn.

Mr Staley, the bank's chief executive, noted in a statement that the charges came in the first three months of the year, and that the last quarter was the first "for some time with no significant litigation or conduct charges, restructuring costs or other exceptional expenses which hit our profitability".

"In effect, then, it is the first clear sight of the statutory performance of the business which we have re-engineered over the past two and a half years - Barclays' transatlantic consumer and wholesale bank - and it is a positive sight."

BBC     News.

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