Barclays Q1 profit drops 42% on pandemic

London

BRITISH banking giant Barclays said on Wednesday that net profit tumbled 42 per cent in the first quarter, hit by the economic shock sparked by the deadly novel coronavirus.

Earnings after taxation slumped to £605 million (S$1.1 billion) in the three months to the end of March compared with £1.04 billion a year earlier, Barclays said in a results statement.

The lender added it will take a £2.1-billion impairment charge on the overall impact of the devastating Covid-19 pandemic, but reassured over its "robust" position.

"Barclays is committed to supporting its customers, clients and the UK economy through the crisis," said chief executive Jes Staley. "Despite the macroeconomic downturn caused by the Covid-19 pandemic, the group's position remains robust, reflecting our diversified business model."

Mr Staley also stressed that the impairment charge "reflects our initial estimates of the impact of the Covid-19 pandemic" at both its UK retail bank and international investment arm. The charge included a £300-million hit linked to "the probability of a sustained period of low oil prices" following the recent market crash, Barclays said.

"An event like the Covid-19 pandemic makes everyone focus on what's really important right now," added Mr Staley.

"For us, that means running the bank safely and soundly, helping our customers and clients through the difficulties they face, supporting the UK economy and the communities where we live and work, and taking care of our colleagues around the world." AFP