Barclays steps up provisions as pandemic hurts consumer business


© Reuters. FILE PHOTO: A Barclays sign outside one of the bank’s London branches

LONDON (Reuters) – Barclays (LON:) set aside a higher than expected 1.6 billion pounds to cover a possible rise in loan losses in the second quarter of the year, as the economic impact of the coronavirus pandemic begins to bear down on its consumer business.

Barclays was expected to report credit impairment charges and loan loss provisions totalling 1.42 billion pounds for the April-June period, according to an average of analyst forecasts compiled by the bank.

That increase takes total provisions to 3.7 billion pounds for the half-year and analysts predict that sum to rise to 5.79 billion pounds for the full year.

The British lender booked pre-tax profit for the first half of the year of 1.3 billion pounds, down from 3 billion pounds a year ago as provisions against potential bad debts outweighed improved revenues from its investment bank.

The fixed income, currencies and commodities division was the top performer in the corporate and investment banking unit with a 60% increase in income to 1.4 billion pounds during the second quarter. The markets division posted a 49% rise in income to 2.1 billion pounds.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  Stocks making the biggest moves in the premarket: Coca-Cola, Travelers, Philip Morris, Lockheed & more

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here