Barclays Warns Over U.K. Economic Uncertainty
25 Octubre 2019 - 3:29AM
Noticias Dow Jones
By Margot Patrick
Barclays PLC said a dimming economic outlook in the U.K. would
make it harder for the bank to meet a key financial metric next
year, as it took a GBP1.4 billion ($1.8 billion) hit to its profit
by reimbursing customers who were wrongly sold insurance on its
products.
The bank posted a GBP292 million net loss in the third quarter,
down from last year's GBP1.05 billion net profit, mainly because of
the charge for reimbursing payment protection insurance. U.K. banks
are nearing the end of a yearslong program to reimburse customers
who were wrongfully sold insurance on bank products.
Chief Executive Jes Staley said Barclays is on track to meet a
9% target this year for returns on tangible equity, a closely
watched measure. The bank continues to target a 10% ROTE for next
year, Mr. Staley said, but that the outlook is more challenging,
"in particular given the uncertainty around the U.K. economy and
the interest-rate environment."
Mr. Staley is trying to improve returns to boost the bank's
share price, which has sunk in his four years as CEO. An activist
investor, Sherborne Investors, wants it to scale back in investment
banking, but Mr. Staley on Friday said its business model combining
U.K. banking, U.S. credit cards and investment banking "allows us
to weather today's macro headwinds."
Revenue rose 17% in the quarter in the corporate and investment
bank and costs were flat from a year ago, lifting pretax profit in
the unit to GBP900 million from GBP500 million.
After stripping out the PPI charge and other litigation costs,
Barclays' net profit for the quarter was GBP1.23 billion, up from
GBP1.14 billion in third quarter of 2018.
Write to Margot Patrick at margot.patrick@wsj.com
(END) Dow Jones Newswires
October 25, 2019 04:14 ET (08:14 GMT)
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