Business Irish

Sunday 23 July 2017

Profits slip at Irish arm of Barclay's Bank

Barclays net interest income from its Irish business declined to €27.8m in the year ending December 31 2016, compared to €31.9m in the previous period. Photo: Reuters
Barclays net interest income from its Irish business declined to €27.8m in the year ending December 31 2016, compared to €31.9m in the previous period. Photo: Reuters

Gretchen Friemann

Profits at the Irish arm of Barclay's Bank slipped by 2pc to €24.4m last year as the London-based lender, which is considering expanding its Dublin operations, characterised the UK's exit from the European Union as a "risk to the Irish economy".

Barclay's attributed the fall to a "specific provision" of €1.1m as well as an accounting driven impairment of €400,000.

As the Irish Independent reported recently the UK bank is considering either taking more space at its current location in Two Park Place in Ballsbridge or shifting to new digs at Green REIT's upmarket, One Molesworth development in central Dublin.

According to recently-filed accounts, Barclays net interest income from its Irish business declined to €27.8m in the year ending December 31 2016, compared to €31.9m in the previous period.

The bank blamed the fall on the "negative interest rate environment" but said the decrease was offset by a 29pc increase in foreign exchange income and a 24pc increase in fee income.

A one-off provision of €3m, relating to a "constructive obligation" to the sale of a subsidiary hit the bank's profits and operations.

However customer deposits rose by 16pc to €2.4bn in 2016 while drawn customer loans increased by 53pc to €1.5bn.

Barclays, led in Ireland by Sasha Wiggins, did not set out its Brexit plans in the result but said it continues to monitor the "potential future impact" of last year Brexit referendum.

Meanwhile, HSBC unveiled two senior moves with Gareth Governey appointed to head of corporates and Greg Hayes as head of multinationals, for their Global Banking operations in Ireland. Both roles will be based in Dublin.

Indo Business

Promoted articles

Also in Business