Barclays Net Profit Tumbles on Africa Write-Down

By Max Colchester

LONDON-- Barclays PLC said Friday that net profit fell by more than half in the first quarter of the year, as the U.K. bank took a write-down on the value of its African business.

The British lender said revenue rose 16% to GBP5.8 billion ($7.5 billion) compared with the same period a year earlier, bolstered by strong growth at its cards business. Net profit totaled GBP190 million, compared with GBP433 million a year earlier, as an impairment taken against the value of the bank's African business hit the bottom line.

Under Chief Executive Jes Staley's watch, the bank has looked to reinvigorate its investment-banking unit, while shedding a host of businesses around the globe. Mr. Staley said the bank was on track to close its "noncore" unit, which houses Barclays's unwanted assets, by the end of June.

Several hurdles still remain to be cleared. Barclays must still deconsolidate its African business from its accounts. It has signed a separation agreement with its African business, which must now be approved by South African regulators. The bank on Friday took an GBP884 million write-down on its value, as the country's economy stutters.

The lender said its investment-banking income rose 7% in the quarter, helped by an increase in debt trading. Bad loans also ticked up at its credit-card unit.

Write to Max Colchester at max.colchester@wsj.com

(END) Dow Jones Newswires

April 28, 2017 02:45 ET (06:45 GMT)

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