Barclays reports flat Q1 profit as provision impairs strong trading

[LONDON] Barclays Bank reported first-quarter profit in line with expectations on Tuesday (Apr 28), as a £200 million (S$344.8 million) provision for a loss to a single-company exposure was counter-balanced by steady performance from its investment bank due to robust trading.

The British bank reported profit before tax for the January-to-March period of £2.8 billion, slightly up from £2.7 billion the year before and in line with analysts’ forecasts based on London Stock Exchange Group data. It also announced a £500 million share buyback.

Income at the investment bank rose 4 per cent from the year before to £4 billion, in line with analysts’ forecasts of £3.9 billion. The British lender did not name the single firm that had triggered the £200 million charge at its investment bank.

Investors had been braced for such a charge, however, following the collapse in February of London-based Market Financial Solutions (MFS), a little-known lender that specialised in complex property-related loans.

Its failure raised concerns about the checks that lenders, including Barclays, had made, as well as about the health of the broader private credit market.

Barclays is owed £495 million from its exposure to MFS, ⁠a ​source said. REUTERS