BCS Barclays PLC

By Margot Patrick

Barclays PLC (BARC.LN) said it still aims to meet a key financial metric next year despite dimmer prospects for U.K. economic growth.

The bank posted a 292 million pounds ($376.1 million) net loss in the third quarter, down from last year's GBP1.05 billion net profit, mainly because of a GBP1.4 billion charge to reimburse customers for payment protection insurance. U.K. banks are nearing the end of a yearslong program to reimburse customers who were wrongfully sold insurance on bank products.

Chief Executive Jes Staley said Barclays is on track to meet a 9% target this year for returns on tangible equity, a closely-watched measure. He said the bank continues to target a 10% ROTE for next year but said the outlook is more challenging, "in particular given the uncertainty around the U.K. economy and the interest rate environment."

Mr. Staley is trying to improve returns to boost the bank's share price, which has sunk in his four years as CEO. An activist investor, Sherborne Investors, wants it to scale back in investment banking, but Mr. Staley on Friday said its business model combining U.K. banking, U.S. credit cards and investment banking "allows us to weather today's macro headwinds."

Revenue rose 17% in the quarter in the corporate-and-investment bank and costs were flat from a year ago, lifting pretax profit in the unit to GBP900 million from GBP500 million.

After stripping out the PPI charge and other litigation costs, Barclays' net profit for the quarter was GBP1.23 billion, up from GBP1.14 billion in third-quarter 2018.

Write to margot.patrick@wsj.com

(END) Dow Jones Newswires

October 25, 2019 03:06 ET (07:06 GMT)

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