29th Apr 2015 07:02
(An item published at 0730 BST misstated the analyst consensus for adjusted pretax profit. The correct version follows.)
LONDON (Alliance News) - Barclays PLC on Wednesday reported a 27% drop in first-quarter pretax profit as the bank set aside GBP800 million in provisions that were mostly related to investigations into regulators' investigations into alleged foreign exchange manipulation.
In a statement, the lender reported a pretax profit of GBP1.34 billion in the three months ended March 31, compared with a pretax profit of GBP1.81 billion in the corresponding quarter of the prior year.
Net operating income fell to GBP6.08 billion from GBP6.22 billion, as lower income net of insurance claims more than offset a fall in credit impairment charges and other provisions.
Operating expenses increased to GBP4.65 billion from GBP4.44 billion as higher administration and general expenses more than offset lower staff costs. The increase in operating expenses included GBP1.03 billion of litigation and conduct costs. On top of the GBP800 million related to currency rigging investigations, Barclays made provisions of GBP150 million for payment protection insurance mis-selling costs and a GBP118 million loss on the sale of its Spanish business.
Adjusted pretax profit, which strips out own credit, provisions relating to misconduct, a loss on the sale of Spanish assets, as well as other items, increased to GBP1.85 billion from GBP1.69 billion.
Analysts had forecast an adjusted pretax profit of GBP1.81 billion, according to consensus estimates available on Barclays' website.
http://www.barclays.com/barclays-investor-relations/consensus.html
The bank's first-quarter dividend was maintained at 1.0 pence per share.
By Samuel Agini; [email protected]; @samuelagini
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