Barclays bank rebounds into quarterly net profit

Published at 10:51pm on October 23, 2020

Barclays said on Friday that it rebounded into profit in the third quarter after a vast mis-selling charge a year earlier, but cautioned over the outlook due to coronavirus and Brexit.

Profit after taxation hit £611 million ($801 million, 677 million euros) in the three months to the end of September, Barclays said in a statement.

That contrasted with a net loss of £292 million in the third quarter of 2019, when it had taken a massive charge of £1.4 billion to compensate customers who had been mis-sold payment protection insurance (PPI) over a number of years.

Pre-tax profit soared to £1.1 billion from just £200 million a year earlier, while group income dipped six per cent to £5.2 billion.

The lender also booked £608 million of impairment charges for the reporting period. — AFP

Barclays added that the ‘outlook remains uncertain and subject to change depending on the evolution and persistence of the Covid-19 pandemic and the outcome of Brexit negotiations’.

And the company warned that it was also mulling further cost-cutting.

‘The group will be evaluating actions to reduce structural costs, which could result in additional charges, the timing and size of which remain to be determined,’ it said.