Barclays sets aside £2.1billion to cover spike in loan losses

Barclays sets aside £2.1billion to cover spike in loan losses due to coronavirus fallout and reports first quarter profits of £932m – down from £1.5bn last year

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Barclays set aside 2.1 billion pounds to cover a likely spike in loan losses as thousands of its corporate and consumer borrowers battle to cope with the financial fallout of the COVID-19 pandemic.

The British lender booked first quarter pretax profits of 923 million pounds, down 38% from 1.5 billion pounds in the first quarter of 2019 and shy of the 1.27 billion pounds average of analysts’ forecasts compiled by the bank.

Barclays said group income rose by 20% to 6.3 billion pounds, boosted by a surge in activity in its transatlantic investment bank where pretax profits leapt by 42% to 1.2 billion pounds.

The fixed income, currencies and commodities unit was the investment bank’s best performer over the quarter, posting a 106% rise in income to 1.9 billion pounds as it cashed in on sharp global market swings in some of the world’s largest economies.  

Barclays said group income rose by 20% to 6.3 billion pounds, boosted by a surge in activity in its transatlantic investment bank where pretax profits leapt by 42% to 1.2 billion pounds

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