Barclays 1Q Pretax Profit Fell, But Beat Forecasts
28 April 2022 - 5:03PM
Dow Jones News
By Sabela Ojea
Barclays PLC reported on Thursday a decline in pretax profit for
the first quarter of 2022, which still came in ahead of market
expectations, and said that it was keeping its capital and return
on equity ratios for the year as a whole unchanged despite booking
higher impairments.
The FTSE 100 listed lender posted a pretax profit for the
quarter of 2.23 billion pounds ($2.80 billion) compared with
GBP2.40 billion for the same period last year. It was expected to
post a pretax profit of 1.32 billion pounds ($1.66 billion) for the
first quarter of 2022, according to its own compiled consensus.
Barclays's net profit fell to GBP1.40 billion from GBP1.70 billion
for the same period last year. It was anticipated to fall to GBP464
million, taken from the bank's compiled forecasts.
Total income rose to GBP6.50 billion from GBP5.90 billion, it
said.
The bank closed the quarter with a common equity Tier 1 ratio--a
key measure of balance-sheet strength--of 13.8%, down from 15.1% as
at Dec. 31, 2021. It was expected to post a ratio of 13.6%, taken
from its compiled consensus.
Total operating expenses rose to GBP4.11 billion, when the
market anticipated it to increase to GBP4.13 billion, according to
the lender's compiled forecasts. This compares with operating costs
of GBP3.58 billion for the year-earlier period.
"Acknowledging geopolitical uncertainty and cost of living
pressures, the impairment charge is expected to remain below
pre-pandemic levels in coming quarters given reduced unsecured
lending balances and appropriate coverage ratios," the company said
after booking a credit impairment charge of GBP141 million from a
charge of GBP55 million for the same period last year.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
April 28, 2022 02:48 ET (06:48 GMT)
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