Business

Barclays profits drop after hit from debt sale mistake, drop in trading


A branch of Barclays Bank in London.


Photo:

Chris J. Ratcliffe / Bloomberg News

LONDON-

Barclays

BCS -0.41%

PLC said its net profit fell in the first quarter as a result of debt sales and lower deal levels.

The London-based lender on Thursday said it made £1.4 billion, or $1.8 billion, in the three months to the end of March, down from £1.7 billion He was in the same period last year. Analysts expect the bank to post a profit of £1.55 billion in the quarter. Revenue rose 10% to £6.5 billion.

Barclays earnings reflect the performance of major US banks, which also report significant decrease in profit in the first quarter.

Morgan Stanley

and

Citigroup‘S

net income fell 11% and 46%, respectively.

Headwinds include highest inflation in decades and commodity prices skyrocketed due to War in Ukraine this has catalyzed chaos in the market and a drop in the execution of trades. The UK is facing a particularly severe cost of living crisis, with UK households expected to have Real income fell the most in 30 years.

Profits at Barclays’ corporate and investment banking rose 4% to £1.3 billion in the first quarter, with investment banking fees reduced but activity in global markets increased as the bank supported Support your customers during times of upheaval. Profit at the bank’s UK unit increased by a third to £396 million.

Barclays chief executive CS Venkatakrishnan has been in a rut at the start of his term after the bank last month said it was facing £450 million in losses and an investigation. according to the law. Its U.S. division, in numbers due to clerical errors, inadvertently sold more structured notes than allowed by the Securities and Exchange Commission. It said it hopes to buy back the notes at a loss. Mr. Venkatakrishnan was previously the bank’s chief risk officer.

Barclays said it had a £540 million provision in place in connection with the matter, and the bank reported a 14 per cent increase in operating costs largely due to litigation and conduct fees.

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