Barclays bank in quarterly loss

Written By Unknown on Rabu, 31 Oktober 2012 | 15.36

31 October 2012 Last updated at 04:08 ET

UK bank Barclays has reported a pre-tax statutory loss of £47m for the three months to September, against a £2.4bn profit for the quarter last year.

The loss comes after charges to cover the payment protection insurance (PPI) mis-selling scandal.

Barclays' adjusted profits, not including additional charges, were £1.7bn, up from £1.3bn for the quarter last year.

It takes profits for the nine months to 30 September to £5.9bn, up 18%.

The bank said it needed to set aside a further £700m for PPI claims, on top of £1bn in 2011 and £300m in the first quarter of this year that it anticipated.

Chief executive Antony Jenkins said the results show "good momentum in our businesses despite the difficulties we faced through this period".

Mr Jenkins took over at a difficult time for the banking group, which has seen its reputation severely dented. In June, Barclays was fined £290m by UK and US regulators for attempting to manipulate Libor, an interbank lending rate which affects mortgages and loans.

The scandal saw previous boss Bob Diamond and chairman Marcus Agius depart the bank.

The entire financial services industry has come under scrutiny since the financial crisis in 2008.

The industry's reputation has been battered further by the mis-selling of PPI, and the mis-selling of specialist insurance - called interest rate swaps - to small businesses.

In the third quarter, Barclays said its staff costs fell 9% to almost £2bn, including an increase in deferred charges for bonuses in previous years to £942m.


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