Barclays 2Q Pretax Profit Fell Significantly, Missing Market Views; Costs Set to Keep Rising

By Sabela Ojea

Barclays PLC reported Thursday a significant decline in second-quarter pretax profit, missing market views, after the U.K. bank booked higher operating costs and impairments which it said are set to continue rising.

The U.K. bank posted a pretax profit for the second quarter of 1.50 billion pounds ($1.82 billion) compared with GBP2.50 billion for the same period a year earlier. Pretax profit was expected to decline to GBP1.63 billion, according to the bank's compiled consensus.

The FTSE 100 listed bank's total income increased to GBP6.71 billion from GBP5.42 billion for the prior year. Total income was anticipated to rise to GBP6.50 billion for the second quarter of 2022, taken from the bank's compiled forecasts.

The bank ended the period with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 13.6%, down from forecasts of a ratio of 13.8% and from a ratio of 15.1% as at Dec. 31.

The board has declared an interim dividend of 2.25 pence a share, up from 2.0 pence a year earlier. The board was expected to declare a payout to shareholders of 2.3 pence a share.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

July 28, 2022 02:37 ET (06:37 GMT)

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