Barclays Q3 profit drops as it takes £1.4bn hit from PPI claims
Barclays reported a drop in third-quarter profit on Friday as it took a hit from a surge in payment protection insurance (PPI) claims and struck a cautious note on the outlook.
Banks
4,008.17
16:39 23/04/24
Barclays
192.24p
16:40 23/04/24
FTSE 100
8,046.14
16:30 23/04/24
FTSE 350
4,424.29
16:39 23/04/24
FTSE All-Share
4,378.99
16:30 23/04/24
In the three months to the end of September, adjusted pre-tax profit rose to £1.8bn from £1.6bn in the third quarter of last year. Taking into account litigation and conducts costs, however, pre-tax profit fell to £246m from £1.46bn in 2018.
The bank said it took a £1.4bn hit from PPI claims, in line with the £1.2bn to £1.6bn guidance it gave in September and taking the total provisions to £11bn.
For the nine months to September, group pre-tax profit came in at £3.3bn, up from £3.1bn in the same period a year ago.
Chief executive officer Jes Staley said: "These represent another set of consistent and resilient results, and they show the benefits of our diversified model - one which allows us to weather today's macro headwinds, and grow our businesses and profitability over time.
"These results show we remain on track to achieve our target of a group return of greater than 9% for 2019. We continue to target a return of tangible equity of greater than 10% in 2020, though we acknowledge that the outlook for next year is unquestionably more challenging now than it appeared a year ago, in particular given the uncertainty around the UK economy and the interest rate environment."
At 0845 BST, the shares were up 3.1% at 171.51p.