Barclays reports £1bn write-off

Barclays reports £1bn write-offBarclays said profits will be down for the first quarter after writing down £1 billion in assets relating to the US subprime crisis.

But the bank did not announce a rights issue in its interim statement, and shares in the lender rose 1.35 per cent in early trading on the FTSE 100.

Chief executive John Varley said: “Our 2008 performance continues to benefit from the diversification of our business in recent years. Our investment banking and investment management businesses were profitable in challenging market conditions.”

Barclays reported increased customer deposits, in line with many other banks, but also said that mortgage volumes were “significantly higher” than in 2007 and mortgage impairment remained low.

The bank’s credit card unit Barclaycard performed strongly, according to the statement, while Barclays capital was profitable despite challenging trading conditions.

The bank warned that its tier 1 capital - a key measure of a bank’s financial strength – would be slightly lower than the 7.6 per cent reported as at 31st December 2007.

Barclays said it intends to raise its ratio to 7.25 per cent “in time”, but did not propose going to its shareholders for cash to bolster its capital, unlike several other banks including RBS, HBOS and yesterday Bradford & Bingley.

Have your say on 'Barclays reports £1bn write-off', comment below

This article was posted on May 15, 2008 at 8:58 am.
Transforming Telford
Greenhous SAAB
MRC Recruitment
A History of Floods

Post a Comment

*
*

* Required fields. Your email is never published or shared.

Disclaimer: We will put up as many of your responses as possible but cannot guarantee that all comments will be published. We prefer short comments that include no external website links. We reserve the right to edit comments and will not enter into correspondence over editing decisions. Comments featured on the site are not representative of the views of the Shropshire Star or Midland News Association.