Barclays CEO Faces Regulatory Questions Over Epstein Link; Profit Missed Market View
February 13 2020 - 3:10AM
Dow Jones News
By Sabela Ojea
Barclays PLC said Thursday that Chief Executive Officer Jes
Staley retains the board's full confidence despite a U.K.
regulatory investigation concerning his relationship with Jeffrey
Epstein, as it reported its 2019 results.
The Financial Conduct Authority and Prudential Regulation
Authority are investigating how Mr. Staley characterized the
relationship to the company and how Barclays subsequently described
it to the FCA.
The U.K. lender said it will continue to cooperate fully with
the regulatory investigation and noted Mr. Staley has had no
contact with Mr. Epstein since becoming CEO in 2015.
Barclays made a pretax profit of 4.36 billion pounds ($5.65
billion) for the 2019 compared with GBP3.49 billion a year
earlier.
Analysts had expected Barclays to report a pretax profit of
GBP4.44 billion, taken from FactSet and based on 14 analysts'
estimates.
The British bank booked a GBP1.4 billion provision for expected
payment protection insurance costs in the third quarter of 2019, in
line with previous guidance.
Net operating income slightly rose to GBP19.72 billion from
GBP19.67 billion, when it was forecast to reach GBP21.53 billion,
taken from FactSet and based on 15 analysts' estimates.
Income from Barclay's corporate-and-investment bank rose 4.7% to
GBP10.23 billion.
The London-listed lender said its return on tangible equity came
to 9.0% for the year and added that it would be challenging to
achieve a target greater than 10% in 2020 The company had
previously said it aimed for a RoTE greater than 9% in 2019, and
10% in 2020.
The bank declared a final dividend of 9.0 pence a share, up from
6.5 pence a share a year earlier.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
February 13, 2020 02:55 ET (07:55 GMT)
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