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August 2, 2018

Barclays H1 results show 29% profit drop

Barclays H1 results shows the bank reported a pre-tax profit of £1.66bn for the first half of 2018, a slump of 29% compared to £2.34bn a year ago.

The results were affected by litigation and conduct charges of £2bn, mainly related to a £1.4bn settlement signed with the US Department of Justice over sale of toxic securities.

The banking group posted attributable profit of £468m during the period, versus a loss of £1.21bn in the previous year.

Net operating income for the half year ended 30 June 2018 was £10.36bn, up 5% from £9.82bn a year ago. Operating expenses increased 13% to £8.71bn on a year-on-year basis.

The bank’s UK division, which includes personal banking, card and wealth management businesses, reported attributable profit of £426m for the first half of 2018, compared to £185m last year.

Barclays H1 results

Compared to last year, the unit’s pre-tax profit surged 30% to £826m while total income dipped 1% to £3.62bn. Operating expenses at the unit dropped 9% year-on-year to £2.38bn.

The banking group’s International division posted attributable profit of £1.86bn for the first half of 2018, a rise of 13% from £1.65bn in the previous year. The unit includes the bank’s corporate and investment bank, and consumer, cards and payments.

The International division’s pre-tax profit increased 4% to £2.71bn from £2.61bn last year, while operating expenses dipped 1% to £4.66bn.

Barclays CEO Jes Staley said: “The first half of 2018 has been characterised by strong financial performance and increased profitability. Our Group return on tangible equity (RoTE) was 11.6% and profit before tax was £3.7bn, excluding litigation and conduct.

“Barclays’ CET1 capital ratio was 13.0%, driven by strong organic earnings growth and the regulatory deconsolidation of Barclays Africa.”

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