Barclays 1Q Net Profit Nearly Halved; Warns of Credit Impairments Amid Pandemic
April 29 2020 - 2:56AM
Dow Jones News
By Sabela Ojea
Barclays PLC reported Wednesday a nearly halved net profit for
the first quarter of 2020 and said that the early effects of the
coronavirus have been reflected in a large credit-impairment charge
and the cancellation of 2019's dividend.
The FTSE-100 listed lender made a net profit of 605 million
pounds ($752.7 million) in the quarter, compared with GBP1.04
billion for the same period a year earlier.
The U.K. bank made a pretax profit of GBP913 million, compared
with GBP1.48 billion for year-earlier period.
Analysts expected a net profit of GBP510.5 million, taken from
FactSet and based on two analysts' estimates, while pretax profit
was forecast to be GBP1.48 billion, also taken from FactSet and
based on four analysts' estimates.
Total income rose 20% to GBP6.28 billion, it added, noting that
the board decided not to pay its 2019 9.0 pence a share dividend
declared in February.
The U.K. lender also warned of having taken a GBP2.12 billion
credit-impairment charge for the period and that it had a return on
tangible equity of 5.1%, down from 9.2% in the first quarter of
2019.
"However, we believe that a RoTE of greater than 10% remains the
right target for the bank over time," Chief Executive James E
Staley added.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
April 29, 2020 02:41 ET (06:41 GMT)
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