Results boost buoys Barclays

BARCLAYS scored its best half-year results in nearly a decade as it began to move clear from crippling litigation and misconduct charges.

The lender signalled its highest annual dividend payout since 2008 after growing its half-year pre-tax profit by 82 per cent to just over £3billion.

Last year it was hit by costs of £400million from the payment protection insurance scandal and a £1.4billion settlement with US authorities over its sale of mortgagebacked securities ahead of the financial crisis. It has not put any more money aside for PPI claims. Its provision to date is £9.6billion. Shares rose 1¾p to 155¾p.

Chief executive Jes Staley hailed a “resilient” second quarter performance and noted the outperformance of its investment bank in fixed income, currencies, credit and banking fees.

Barclays recently fought off an attempt by 5.5 per cent activist investor Edward Bramson to win a seat on its board. Bramson was calling for the investment bank to be scaled back, but Staley is backing a more diversified bank to bring future rewards.

Total income was down 1 per cent to £10.79billion, with margins squeezed by fierce competition in the UK’s mortgage market, and as the bank took less risk in its credit card business. But the dividend was increased by 20 per cent.

Staley said: “Management focus on cost control remains a priority and we expect to reduce expanses to below £13.6billion for 2019.

“This puts us in a position to continue to increase the return of capital to shareholders. The increase in ordinary dividend reflects the confidence that the board and management have in the sustainable earnings generation of our business.”