Barclays Profit Takes Hit From Asset Sales
July 29 2016 - 3:01AM
Dow Jones News
By Max Colchester
LONDON-- Barclays PLC on Friday said that first-half net profit
slipped nearly a third as the bank sucked up losses selling down
unwanted assets and put aside cash to cover rising bad loans.
Total income was down 9% to GBP11 billion ($14.49 billion) in
the first six months of the year. Net profit fell to GBP1.1 billion
from GBP1.6 billion the year before.
Barclays is reshaping its operations. After cutting dividends
the bank is in the process trying to speed its slimming down,
finding a buyer for a range of Barclays's businesses, including a
stake in its African unit. The bank recorded a loss before tax of
GBP1.9 billion selling down these assets.
Barclays was also hit by sharply rising impairments in both its
credit card business and lending to oil and gas companies. The bank
put aside an extra GBP400 million to compensate customers sold
insurance products they didn't need.
Income at its U.K. retail business was flat for the year, with
growth in personal banking hit by falling revenue at its profit
engine credit card business. Barclays's corporate and investment
bank saw profit before tax down 16% as revenue in equities slumped
and costs increased.
Write to Max Colchester at max.colchester@wsj.com
(END) Dow Jones Newswires
July 29, 2016 02:46 ET (06:46 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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