Barclays net profits dive 31% to £1.1b

Non-core losses and impairment at French retail division weigh on British bank’s first-half performance

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 per cent to £1.1 billion (Dh5.3 billion) in the six months to June, compared with £1.6 billion a year earlier, Barclays said. Pre-tax profits fell 21 per cent to just over £2 billion in the same period.

Non-core assets, which the group has flagged for disposal, made a pre-tax loss of £1.90 billion. Core assets logged a £3.96-billion profit.

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 misselling of credit insurance or payment protection insurance, 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, Barclays is well positioned to weather any potential economic consequences of that decision,” Staley said.