PROFITS FALL AT BARCLAYS AS IT PUTS A FURTHER £400M ASIDE FOR PPI
Profits at Barclays fell by 21% in the first half of the year as the bank set aside a further £400m to compensate customers mis-sold payment protection insurance (PPI).
Profits for the six months to 30 June fell from £2.6bn last year to £2bn. The new charge for PPI means the mis-selling scandal has so far cost Barclays a total of £7.8bn.
Profits were depressed by a £1.9bn loss on parts of the business that the bank has ear-marked for sale.
This includes its French retail, wealth and investment management businesses which it is in talks to sell to private equity firm, AnaCap Financial Partners.
Commenting on the impact of Britain’s vote to leave the European Union, Jes Staley, who became chief executive last year, said he had no plans to alter the bank’s strategy of selling parts of the business and strengthening its retail and investment banking operations.
He said: “We remain confident that it is the right plan for Barclays, and see no reason to adjust it, or the pace of delivery, in light of the vote by the UK last month to exit the EU.”
However, the bank set out a number of risks it now faces, which include possible changes to “passporting” rights that allows the bank to operate across the EU.
It also it faces uncertainty over whether there will be any changes to freedom of employee movement, which would “impact Barclays’ access to the EU talent pool” as well as “decisions on hiring from the EU of critical roles”.