Barclays Q1 profits fall 12% as mortgage demand subdued
Barclays Bank reported a 12% fall in first-quarter profit on lower income as customers shopped around for better savings rates and mortgage deals.
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Pre-tax profit for the first three months of the year fell to £2.2bn from £2.6bn a year earlier and slightly better than its own consensus forecast of £2.195bn.
Loans and advances to customers fell by 1%, “reflecting subdued mortgage lending amid lower market demand”, the bank added, while deposits were fell 2% as savers chased better rates elsewhere after years of paltry returns.
Group income fell 4% to £7bn, while net interest margin - the difference between what the bank charges for loans and savings - fell to 3.09% from 3.18%.
Income at its investment division fell 7% to £3.32bn after a strong performance in equities was more than offset by lower fixed income trading and weaker merger advisory fees.
Loan default impairments fell to £58m, compared with £113m last year.
Reporting by Frank Prenesti for Sharecast.com