Barclays full-year profits almost treble to £3.2bn

      Published on Thursday, 23 February , 2017      108 Views     

  • UK Business

Barclays has reported a jump in annual profits after making “strong progress” in restructuring.

The bank reported a profit before tax of £3.2bn for 2016, up from £1.1bn the year before.

Its reorganisation has included the sale of its Africa business and selling off “non-core” assets.

Chief executive Jes Staley told the BBC the bank was “committed to the UK” post-Brexit, even if Britain leaves the single market.

Barclays has been selling off parts of the business which it deems “non-core”. In its annual results, the bank said it would bring forward the closure of the unit dealing with this by six months, and it will now shut on 30 June.

“We are now just months away from completing the restructuring of Barclays, and I am more optimistic than ever for our prospects in 2017, and beyond,” Mr Staley said.

Simon Jack: Barclays boss has reasons to be cheerful

Investec analyst Ian Gordon said that Barclays had benefitted from the sharp depreciation of the pound against the dollar following the Brexit vote, and that its investment bank revenues had also helped its performance.

Investment bank revenues of £2.5bn were up 21% compared with the year earlier, after a strong performance in the second half of 2016.

The bank also had lower litigation and misconduct charges in 2016, falling to £1.3bn from £4.4bn the previous year.

However, Barclays still faces a lawsuit by the US Department of Justice for alleged mortgage securities fraud.

Dividend boost?

Mr Staley told the BBC the bank was preparing to add hundreds of staff to offices in Dublin, Frankfurt and Milan to counter Brexit risks to its European business.

While he expects the majority of staff to remain in London, changes to the bank’s legal structure, including making Dublin the headquarters of its European business, may be necessary.

Category UK Business | 2017/02/23 latest update at 8:00 PM
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