BARCLAYS yesterday reported a loss of £236m for the first quarter of the year after facing a hit from litigation and conduct charges.
The bank's boss looked to keep investors on side, saying it remains Barclays' intention to pay a dividend for 2018 of 6.5p. The lender will also look to return "an increasing amount of capital to shareholders" through the annual dividend and "via other means of return, such as buybacks".
The bank swung to a loss for the first quarter of 2018, after reporting a profit of £1.68bn this time last year.
Barclays said that excluding the litigation and conduct charges of £1bn - principally relating to a £1.4bn settlement with the US Department of Justice, profit before tax had risen by one per cent to £1.72bn.
That was driven by a 45 per cent improvement in credit impairment charges.
There were double-digit returns in both the corporate and investment bank, with profit before tax up by 49 per cent, and consumer, cards and payments. Barclays said it intends to pay a dividend for 2018 of 6.5p.
Last month, it was announced that Barclays had agreed to pay $2bn (£1.4bn) in civil penalties to resolve claims for fraud in the sale of residential mortgage-backed securities. Chief executive Jes Staley said: "This has been a significant quarter for Barclays, one in which we have shown that our new operating model and our portfolio of diversified, profitable businesses are capable of producing improved returns for shareholders."
Separately, a Barclays-led consortium of investors has bought up more than £5bn of loans from Bradford and Bingley (B&B), allowing the nationalised bank to finally pay back the taxpayer.
The sale comprises two separate portfolios, one of buy-to-let mortgages and one of residential owner-occupied mortgages, the "bad bank" set up after the nationalisation of B&B, UK Asset Resolution, said yesterday.
B&B was one of the British banking system's main casualties from the financial crisis, when the money markets which had funded its rapid expansion seized up.
(c) 2018 City A.M., source Newspaper