Barclays Investment Bank Success Offsets 1Q Loss -- Earnings Review
April 26 2018 - 6:21AM
Dow Jones News
By Adam Clark
Barclays PLC (BARC.LN) reported its first-quarter earnings on
Thursday. After initially falling, the bank's shares recovered to
trade up over 1% by late morning. Here's what we watched:
PROFIT: Barclays booked a net loss of 764 million pounds ($1.07
billion) on the back of litigation and conduct costs, wider than
the GBP499 million forecast by analysts.
REVENUE: Barclays reported net operating income of GBP5.07
billion for quarter, falling short of analysts' expectations of
GBP5.58 billion. Quarterly total income fell 8% to GBP5.36 billion,
which Barclays said was driven the nonrecurrence of one-off
benefits in its international segment.
INVESTMENT BANK: Chief Executive Jes Staley received a boost to
his strategy of backing the investment banking unit. Barclays said
its corporate-and-investment bank made a pretax profit of GBP1.18
billion, up from GBP790 million the prior year, benefiting from
higher equities and markets income.
LITIGATION, CONDUCT CHARGES: In addition to the previously
announced $2 billion settlement with the U.S. Department of
Justice, Barclays was dragged to a loss by the GBP400 million
additional provision made for payment protection insurance
mis-selling claims. Barclays said it had a "continued higher
complaints flow" in the first quarter, but sees its current PPI
provision as appropriate.
CAPITAL: The impact of the net loss was to drag Barclays' common
equity tier one ratio--a key measure of capital strength--down to
12.7% from 13.3% at the end of 2017. Barclays said it is confident
of returning to a ratio of around 13% "in good time," and
increasing its return of capital to shareholders.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
April 26, 2018 06:06 ET (10:06 GMT)
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