Wednesday 24 July 2019

Barclays puts by €172m for Brexit uncertainty as profits edge lower

(stock image)
(stock image) Business Desk Business Desk

Banking giant Barclays has revealed a £150m (€172m) hit to cover Brexit uncertainty as it said annual profits edged 1pc lower to £3.49bn (€4bn).

The group said it had set aside the Brexit charge in the final three months of 2018 to cover the "anticipated economic uncertainty in the UK", which is set to impact its UK credit card and corporate loans businesses.

Barclays said its bottom-line profits were dragged lower by £2.2bn of conduct and litigation charges, including a £1.4bn settlement with US authorities over its sale of mortgage-backed securities in the lead-up to the financial crisis and £400m for payment protection insurance (PPI) mis-selling.

With these excluded but including the £150m Brexit charge, underlying pre-tax profits lifted 20pc to £5.7bn.

Jes Staley, chief executive of Barclays, said: "2018 represented a very significant period for Barclays.

"In the course of the year, having resolved major legacy issues and reduced the drag from low returning businesses, we started to see the earnings potential of the bank, as the strategy we have implemented began to deliver."

PA Media

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