Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Barclays records loss in Q1 after hit from US fine and PPI claims

Barclays records loss in Q1 after hit from US fine and PPI claims

Barclays moved into loss in the first quarter of 2018, after being hit by a £1.4 billion fine and additional to PPI charges. 

At group level, it reported a loss of £764 million, compared to a profit of £190 million over the same period in 2017. This was hit by litigation and conduct charges of £2 billion, including a £1.4 billion settlement with the United States Department of Justice regarding residential mortgage backed securities.

PPI charges over the period were £400 million. Operating expenses were reduced over the year by 6% to £3.4 billion, excluding the aforementioned litigation costs.

The board said the final dividend was 2p per share, which was paid on 5 April. Subject to regulatory approvals, it plans to pay a dividend of 6.5p per share for the year.

Total income for the group was £5.4 billion, up from £5 billion in the first quarter of 2017. Of this, £1.8 billion was from the bank’s UK arm.

Jes Staley (pictured), chief executive office, said: ‘This has been a significant quarter for Barclays, one in which we have shown that our new operating model and our portfolio of diversified, profitable businesses are capable of producing improved returns for shareholders.

'This quarter we also reached an agreement with the US Department of Justice to resolve issues related to the sale of residential mortgage backed securities between 2005 and 2007. While the penalty was substantial, this settlement represents a major milestone for Barclays, putting behind us a significant decade-old legacy matter.

'The settlement with the US Department of Justice, together with additional charges relating to PPI, reduced our CET1 ratio by around 60bps to 12.7%, but given the earnings power of the group, and our strong record in capital management, we are confident that we will get back to around 13% in good time.' 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: how career burnout led to a family office launch

Profile: how career burnout led to a family office launch

I was burnt-out from a career in finance and had no desire to come back, says the founder of Blu Family Office

Wealth Manager on Twitter