Barclays registers 923 million pounds first quarter profit
Financial services major Barclays has reported 923 million pounds of pretax profit during the first quarter compared to 1.5 billion pounds pretax profit during the same period last year. Barclays profit has been impacted by coronavirus led lockdowns and lower business activity. Market analysts had predicted an average of 1.25 billion pounds pretax profit for the bank during first quarter.
Barclays added that the impact of coronavirus will likely continue in the next quarters as the infection numbers continue to rise across the UK and other markets. Barclays CEO Jes Staley said, “Given the uncertainty around the developing economic downturn and low interest rate environment, 2020 is expected to be challenging.” Barclays bottomline was positively supported by strong performance of its investment banking division. Barclays International registered 44 percent increase in income to 3.6 billion pounds.
The sharp volatility in the international stock markets helped Barclays International to register strong performance during the quarter. Banking fees were higher by 12 percent and equities segment registered 21 percent increase in income.
As per a report published by Reuters, “The impairments number included a 405 million pound hit from single name wholesale loan charges, while charges in its consumer, cards and payments division nearly trebled to 885 million pounds from Dec. 31, as the deteriorating economic situation increased the chances of customers missing payments.”