British lender Barclays Plc (BCS,BARC.L) Wednesday reported a turnaround to profit in its first quarter, reflecting a significant reduction in the firm's own credit charge. Adjusted pre-tax profit declined from last year due to restructuring costs of 514 million pounds.
In an interim management statement, the lender said its profit before tax for the first quarter was 1.54 billion pounds, compared to a loss of 525 million pounds in the previous year. During the recent period, the company recorded own credit charge of 251 million pounds, significantly down from 2.62 billion pounds last year.
On an adjusted basis, profit before tax was 1.79 billion pounds, including costs to achieve transform, driven by good momentum across the businesses, particularly in the Investment Bank, Barclaycard and Wealth and Investment Management. The company reported adjusted pre-tax profit of 2.4 billion pounds in the prior year.
Antony Jenkins, chief executive of the company stated, "We set out in our Strategic Review in February our path to become the "Go-To" bank for all our stakeholders. While there remains much to do to build a stronger and more resilient Barclays, we are completely focused on executing our Transform programme and are making good early progress."
Barclays said it has recognised about 500 million pounds of 'costs to achieve Transform' in the first quarter, related to its European retail branch network. The firm also expect to recognize a further 500 million pounds of costs to achieve Transform in 2013.
UK RBB business profit before tax was 299 million pounds, compared to a loss of 68 million pounds in the year-ago quarter. In Investment Bank, pre-tax profit climbed 11 percent to 1.32 billion pounds.
Operating expenses, excluding costs to achieve Transform was 4.78 billion pounds, lower than 5.27 billion pounds a year earlier.
Total income, net of insurance claims was 7.48 billion pounds, an increase of 36 percent from the prior year. On an adjusted basis, total income net of insurance claims declined 5 percent to 7.73 billion pounds.
Credit impairment charges and other provisions dropped 10 percentage to 706 million pounds.
Core Tier 1 ratio was 11 percent, compared to 10.8 percent last year.
Barclays said it will pay an first interim cash dividend for 2013 of 1 pence per share on June 7.
In London, Barclays shares are currently trading at 302.2 pence, up 3.9 pence or 1.31 percent, on a volume of 29.79 million shares.
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