Barclays Share Price: Company reports a 5% fall in adjusted profits to £1.69bn (new)

on May 6, 2014
Updated: Oct 21, 2019

Barclays reports a 5% fall in adjusted profits to £1.69bn (new).

Statutory profit before tax improved 18% to £1,812m, including an own credit gain of £119m (Q113: loss of £251m)..
Investment Bank income was down 28% to £2,490m driven primarily by a 41% decrease in FICC income due to challenging trading conditions resulting in subdued client activity across Rates and Credit, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relatively strong performance in Q113.

Adjusted income decreased 14% to £6,650m, primarily reflecting a reduction in the Investment Bank partially offset by growth in UK RBB and Barclaycard. Customer net interest income for RBB, Barclaycard, Corporate Banking and Wealth and Investment Management increased 4% to £2,613m reflecting business growth and stable margins.
Operating expenses decreased £861m to £4,435m reflecting a £274m reduction in CTA charges and savings attributable to prior year Transform initiatives, in particular the restructuring programmes, and currency movements.

Credit impairment charges improved 22% to £548m, principally reflecting lower charges in Africa RBB and Corporate Banking. As a result the loan loss rate improved to 45bps (Q113: 56bps).
Adjusted profit before tax improved to £260m (Q413: £123m), reflecting lower operating expenses driven by a reduction in costs to achieve Transform and the 2013 UK bank levy charge of £51m in Q413, in addition to improved impairment. Income reduced 5% to £722m, reflecting a fair value loan portfolio reduction of £27m (Q413: gain £14m)

**Q114 compared to Q413**
· Loans and advances to customers increased £62.0bn (Q413: £61.1bn), driven primarily by an increase in client financing requirements in the UK. Customer deposits increased 3% to £111.7bn reflecting growth across all regions.
· RWAs decreased 4% to £67.9bn driven by run down of Exit Quadrant assets and changes to the treatment of high quality liquidity assets.

A review of its investment bank will be unveiled on Thursday. “We continue to be cautious about the trading environment in which we operate,” says the statement.
Barclays chief executive, Antony Jenkins, said retail, cards and business banking made a strong showing – something of a counterpoint to poor results in investment banking. The review of its business – scheduled for Thursday – is expected to bring job losses. The bank says it is “cautious about the trading environment” and it is “focused on structurally reducing the cost base”.
more to follow…