Modest profit decline for Barclays

by Richard Kilner

Story link: Modest profit decline for Barclays

Barclays yesterday revealed profits of £7.08bn, despite a substantial hit of £1.6bn from exposure to the subprime mortgage crisis.

Following its results the bank promised its risk management and approach to lending would be rigorous and disciplined.

Year on year the bank has seen a very modest fall in profits of 1%, with its losses down almost entirely to writedowns and capital set aside to cover any other debts that fall through.

In other areas, the bank saw a 7% fall in defaults and arrears for retail banking, at £2.01bn.

The group chief executive, John Varley, described the performance as resilient, pointing out the financial turbulence that 2007 saw.

Barclaycard saw its profits rise 18% from its 2006 figures, up to £540m, whilst retail banking pre-tax profits rose to £1.28bn, a 9% increase.

Its dividend payment rose by 10%.