You are here: Home - Saving & Banking - News -

Barclays reports sluggish second quarter after £700m PPI hit

Written by:
Barclays reported significant losses for the second quarter, hit by a £700m PPI mis-selling charge and one-off costs associated with the disposal of African assets.

It missed analyst expectations, with an overall decline in revenues of 15% to £5.06bn. The bank reported a loss of £1.4bn, compared with profits of £677m for the same period a year ago. In the UK, profit before tax fell 41% to £634m primarily due to the PPI charge. It also saw a loss of income following its disposal of Visa Europe. The group said the base rate reduction in 2016 following the Brexit vote had also played a part in its poor results.

However, the bank left its dividend in tact. It declared a dividend of 1p per share and reaffirmed its commitment to paying a dividend of 3p per share for the full year.

The bank said it had closed 36 branches in the first half of 2017, but increased its mobile banking customers from 5.1m to 5.9m over the period. This is part of a wider restructuring programme that has seen it shed 60,000 jobs and a number of its assets.

There was also a weaker performance from its large investment bank, where revenues fell 10% and profits by 30%.

Ian Forrest, investment research analyst at The Share Centre, said: “Overall these results confirm that Barclays is making progress with its restructuring but there are clearly legacy issues still to be resolved, including PPI and the US investigation into the sale of mortgage-backed securities. All of that is reflected in the underperformance of the shares so far this year.

“As a result, we continue to recommend Barclays as a ‘hold’ for medium risk investors. For those interested in the banking sector, our preference remains HSBC as it has a much higher dividend yield, in the sector.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week