31/10/2012

Barclays Reports Loss Amid Regulatory Probes

Barclays has reported a pre-tax quarterly loss of £47m.

The bank, who reported £2.4bn profit over the same period last year, blamed the mis-selling of payment protection insurance (PPI) costs and a £1bn charge against the value of the bank's own credit.

Underlying pre-tax profits for the third quarter reached £1.7bn, compared with £1.3bn last year.

The investment bank reported pre-tax profits of £937m, while UK retail banking fell 19% year-on-year to £400m.

Chief executive, Anthony Jenkins, believes Barclays will end 2012 in a "strong position".

"These results demonstrate that we continue to have good momentum in our businesses despite the difficulties we faced through this period.

"While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned."

They also announced that the company is the subject of two new regulatory probes in the backdrop of the Libor rate-rigging scandal.

The US Department of Justice and US Securities and Exchange Commission are investigating whether its relationships with third parties who help it win or retain business are compliant with the US Foreign Corrupt Practices Act.

It is also being investigated for past power trading in the US.

"The spectre of more damage to the bank's reputation in the form of further regulatory probes is weighing heavily on the shares in early trade," Richard Hunter, head of equities at Hargreaves Lansdown, told the BBC.

"Barclays' outlook statement is also cautious, whilst the previously announced extra PPI provision has dented the overall performance. On the upside, the bank has seen a reduction in impairments and costs, has further bolstered its capital position and has reduced its exposure to the weak peripheral European markets."

(GK)

Related UK National News Stories
Click here for the latest headlines.

30 April 2013
Lloyds Bank Reports £2bn Profit
Lloyds Banking Group has reported a profit for the first three months of the year. The bank recorded a statutory pre-tax profit of £2.04bn in the first quarter of 2013, an increase from £280m for the same period the year before. The latest figures come after a deal to sell more than 630 of its branches to the Co-Op collapsed las week.
05 May 2011
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
07 November 2013
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
06 September 2013
Bank Reports Five-Year High In Housing Market
House prices in the UK have increased by 5.4% in the year to August, reaching its highest rate since June 2010. The news comes in the latest house price survey carried out by the Halifax. In their report, it shows that house prices peaked above £170,000 for the first time in five years.
03 August 2010
Northern Rock Steadfast In Recovery
The boss of a once beleaguered UK bank is "encouraged" by news that nationalised Northern Rock's - a so-called 'bad bank' - has returned to profit following heavy losses last year in the wake of a bail-out by the taxpayer in 2008. Chief Executive Gary Hoffman said the Northern Rock 'AM' results were 'encouraging'.