Barclays Beat Expectations as Impairments Charges Fall Sharply
April 30 2021 - 2:56AM
Dow Jones News
By Pietro Lombardi
Barclays PLC is the latest U.K. bank that beat first-quarter
expectations, and once again provisions for soured loans played a
key role.
The bank posted Friday a quarterly pretax profit of 2.40 billion
pounds ($3.35 billion). This compares with GBP913 million a year
earlier and analysts' expectations of GBP1.76 billion.
Impairments charges dropped sharply to GBP55 million from
GBP2.12 billion. Analysts had expected provisions of GBP503
million.
Results released this week by U.K. peers NatWest Group and
Lloyds Banking Group also beat expectations, as the banks released
some of the money they had stowed away for potential soured
loans.
Net profit at Barclays rose to GBP1.70 billion from GBP605
million, while revenue fell 6%, hit by a 21% decline in net
interest income.
The bank confirmed its medium-term targets. As for this year, it
expects higher costs, while impairments charges should be
significantly below last year's levels. It also expects to reduce
the impairment provision level.
Barclays has accrued an ordinary dividend of 0.75 pence in the
first quarter, but said that this shouldn't be taken as a guidance
for future capital distribution.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
April 30, 2021 02:41 ET (06:41 GMT)
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