Barclays posts sliding first-half profits

LONDON:

British bank Barclays saw first-half net profits tumble by almost a third, hit by non-core losses and an impairment at its French retail division, it said yesterday. Turning to Britain’s recent EU exit referendum, Barclays-which had backed the unsuccessful Remain campaign-said it was well placed to survive any economic fallout.

Earnings after taxation dived 31 percent to £1.1 billion ($1.45 billion, 1.31 billion Euros) in the six months to June, compared with £1.6 billion a year earlier, Barclays said in a results statement. Pre-tax profits fell 21 percent to just over £2.0 billion in the same period. Non-core assets, which the group has flagged for disposal, made a pre-tax loss of £1.904 billion. Core assets logged a £3.967-billion profit.

And the group made a £372-million impairment on its French retail, and wealth and investment management business. Barclays took another £400-million hit for compensation for the mis-selling of credit insurance or payment protection insurance (PPI), which has blighted the nation’s banking sector. “This has been a quarter of very encouraging progress against our strategy,” said chief executive Jes Staley. “Our core businesses, Barclays UK and Barclays Corporate & International, continue to thrive.”

He added: “Non-core (assets) rundown-the key to unlocking the full earnings power of that core-has good momentum, and we remain committed to closing the unit in 2017.”

Turning to Brexit, he added that the bank was “open for business” despite ongoing uncertainty over the matter. “Given the inherent diversification of our business model, coupled with a longstanding conservative approach to risk, Barclays is well positioned to weather any potential economic consequences of that decision,” Staley said. “We are very much open for business, and fully committed to supporting our customers and clients, and the real economy, through this period of uncertainty.”—AFP