Barclays report 15% rise in profits
Barclays report 15% rise in profits
Thursday 7th May 2009
Barclays has reported a 15 per cent rise in profits for the first three months of 2009 today.In an interim management statement, the bank revealed first quarter profits before tax of £1.37 billion.
However, profits from high street retail and commercial banking were down 45 per cent to £586 million.
Also the bank saw a 79 per cent rise in bad debts to £2.3 billion.
Investment banking profits rose 189 per cent to £1.05 billion – following last year's slump and the integration of Lehman Brothers division Barclays purchase when the institution collapsed.
In the UK, Barclays' high street income hit as the low interest rates hit margins – but higher income came from mortgage and loans, as the bank managed positive net lending for the quarter.
The bank has now pledged to increase lending to UK business and consumers this year by £11 billion.
Profits were hit by increased number of customers defaulting on loans.
John Varley, Barclays chief executive, said: "Our results for the quarter showed the continued benefit of diversification.
"We generated strong income growth across most business lines driven by the investments we have made in expanding our international network and in buying Lehman. This, together with good cost control, has enabled us to shield the anticipated increase in impairment and absorb further credit market writedowns on legacy assets."
Shareholders were told dividends will start to be paid in the fourth quarter of 2009 with a final cash dividend for the year being declared and paid in the first quarter of 2010.
However, they were warned "in the light of the current economic and financial environment" dividends would be "conservative" and significantly lower than the 50 per cent of profits distributed in recent years.
At 09:25 BST the Barclays share price was up 2.60 per cent to 295.50p. A year ago it was over 450p.
Related News
Next sales better than expected - 06/05/09
High street clothing retailer Next has bucked trends to post better than expected sales for the last quarter
High street clothing retailer Next has bucked trends to post better than expected sales for the last quarter
FTSE 100 falls back on US dip - 06/05/09
Some of yesterday's enthusiasm among investors on the FTSE 100 evaporated this morning, with the index falling slightly to 4,334
Some of yesterday's enthusiasm among investors on the FTSE 100 evaporated this morning, with the index falling slightly to 4,334
First-time buyers looking to take advantage of market - 06/05/09
New research claims the majority of first-time buyers are looking to take advantage of the current housing market
New research claims the majority of first-time buyers are looking to take advantage of the current housing market
London airport passenger traffic shrinks - 05/05/09
Passenger numbers at London's busiest three airports fell by ten per cent in the first three months of this year
Passenger numbers at London's busiest three airports fell by ten per cent in the first three months of this year
Darling growth forecasts scorned by EC - 05/05/09
Alistair Darling's forecast that the UK economy will grow by 1
Alistair Darling's forecast that the UK economy will grow by 1
News Article Search
Quick Apply
News Archive