Barclays profits fall and rise at the same time

3 March 2015

barclays_bank_limited Sponsors of the Premier League, Barclays, have reported a rather large drop in profits, with statutory pre-tax profits falling by 21%.

One of the things responsible is that the banking group has increased their provision to cover their behinds in the mess that is the currency market manipulation they got themselves into. They've upped their cover by a whopping £750m to £1.25bn.

The bank also upped the pot for payment protection insurance (PPI) compensation, which was raised b y£200m at the end of last year. For the whole of 2014, that's £1.1bn they put aside for PPI.

According to Barclays, if you take out these provisions, their profits actually rose by 12% to £5.5bn.

That's not stopping them from taking other measures though. As a whole, Barclays are reducing the overall pool of cash that they set aside for bonuses.

Boss, Antony Jenkins said that Barclays are looking better than "at any time since the financial crisis." He himself, got a £1.1m bonus, which he defended on the Today programme, saying that under his stewardship, the bank had made a "huge amount of progress" and that they'd reduced operating costs by 9% to £19bn.

Jenkins wants to make sure that the mistakes of the past don't happen again, so he can only hope that some tax skeleton doesn't come out of the closet, like some of Barclay's rivals.

TOPICS:   Banking   Investments   Economy

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment