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Noncore ops weigh on Barclays Q1 profit


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Noncore ops weigh on Barclays Q1 profit

reportedfirst-quarter group profit attributable to ordinary equity holders of theparent of £433 million, down from £465 million in the year-ago period.

BasicEPS declined year over year to 2.7 pence from 2.9 pence.

Thebank reported credit impairment charges and other provisions of £443 million,up from £386 million in the first quarter of 2015, primarily driven by theimpairment of a number of single name exposures, largely in respect of clientsin the oil and gas sector, the bank said.

Barclaysdid not book provisions for U.K. customer redress in the first quarter,compared to £182 million in the first quarter of 2015. It also did not bookprovisions for ongoing investigations and litigation, including foreignexchange, compared to £800 million in the year-ago period. Litigation andconduct charges dropped to £78 million from £1.04 billion.

Thebank's core business reported attributable profit of £950 million in the firstquarter, up on a yearly basis from £620 million. The noncore division booked aloss of £603 million, compared to the year-ago loss of £258 million.

"Theperformance of the core [business] today shows the potential power of the grouponce it is freed from the drag of noncore," said Group CEO Jes Staley.

Barclayssaid momentum in the rundown of the noncore division continued, withrisk-weighted assets dropping a further £3 billion to £51 billion in the firstquarter. The sales of the bank's Portuguese and Italian and Asian businesses, targeted to completeduring 2016, are expected to result in a further reduction of £3.4 billion inRWAs.

Groupreturn on average tangible shareholders' equity amounted to 3.8% in the firstquarter, compared to 4.0% in the same period in 2015.

Thebank's fully loaded common equity Tier 1 ratio declined to 11.3% at the end ofMarch from 11.4% at the end of 2015 due to increased regulatory deductions andother factors. The PRA transitional Tier 1 ratio dropped to 14.3% as of March31 from 14.7% as of 2015-end. The leverage ratio declined to 4.3% at March-endfrom 4.5% at Dec. 31, 2015.

Withregard to Africa, Staley said Barclays continues to explore to reduce its shareholdingto a level that achieves regulatory deconsolidation, including capital marketand strategic options.