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- Barclays PLC on Thursday reported a drop in first-half profit as the bank took a credit impairment charge, but also launched a share buyback.
For the six months to June 30, total income was £13.20 billion, up 17% from £11.32 billion last year. Net interest income rose 22% to £4.76 billion, with Barclays boosted by the ‘rising interest rate environment’ in the UK.
However, pretax profit fell 24% to £3.73 billion from £4.90 billion.
Barclays took litigation and conduct charges of £1.9 billion for the first half of the year, up from just $176 million a year before, including a previously disclosed £1.3 billion cost related to the ‘over-issuance of securities’ in the US and a £165 million associated estimated monetary penalty from the US Securities & Exchange Commission.
In addition, credit impairment charges were £341 million, swinging from a release of £742 million a year before.
Turning to shareholder returns, Barclays declared a half-year dividend of 2.25p per share and said it intends to initiate a further share buyback worth up to £500 million.
‘We are alert to the pressure that the rising cost of living will have on our customers and colleagues. We have a range of measures in place to help and are looking to do more. With our resilient income growth and balance sheet strength, we can provide that support while distributing excess capital,’ said Chief Executive CS Venkatakrishnan.
The lender now expects full-year total operating expenses to be around £16.7 billion, up from a previous outlook of £15.0 billion.
Shares in Barclays were down 1.6% at 155.14 pence in London early Thursday.
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