First-Half Pre-Tax Profit Drop
Today, Barclays announced a drop of 33 percent in its first-half pre-tax profit. This brings it to £2.64bn following a £1bn absorption charge for the price of sorting out complaints on the sale of payment protection insurance which led to a scandal. According to an article in the Belfast Telegraph, Barclays had anyway “set aside £1 billion in the six months to June 30 to cover compensation for customers who were mis-sold PPI.”
PPI Increase
However, looking at a whole slew of factors including the previously-announced PPI provision, making various adjustments, Barclays also noted an increase in profits of 24 percent, rendering their overall figure at £3.68bn. If however, the PPI is disregarded, then Barclays would have been able to enjoy a profit increase of 24 percent, putting it up to £3.7 billion during this time frame, which was significantly ahead of City expectations.
Impairment Drop
There was also a drop in the impairment charge of 14 percent year-on-year, bringing it to £1.83bn. An impairment charge is the capital that is put aside for loans that went bad during a set period of time. There is now 2p for the half year after the second interim dividend of 1p per share was declared.
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