Barclays 1Q Net Profit Nearly Halved; Took Credit Impairment Amid Pandemic -- Earnings Review

By Sabela Ojea

Barclays PLC reported on Wednesday earnings for the first quarter of 2020. Here's what you need to know:

PRETAX PROFIT: Barclays made a pretax profit of 913 million pounds ($1.14 billion) in the first quarter of 2020 compared with GBP1.48 billion for year-earlier period. Analysts expected it to fall to GBP1.10 billion, according to FactSet and based on four analysts' estimates.

NET PROFIT: The lender made a net profit of GBP605 million, down from GBP1.04 billion in the year-earlier period. Analysts expected a net profit of GBP510.5 million, according to FactSet and based on two analysts' estimates.

WHAT WE WATCHED:

--CREDIT IMPAIRMENT CHARGES: Barclays took a GBP2.12 billion credit-impairment charge for the first quarter of 2020 due to the coronavirus pandemic.

--NET INTEREST MARGIN: The lender's net interest margin lowered to 2.91% compared with a net interest margin of 3.18% in the first quarter of 2019. Its net interest margin is still under pressure, as the market expected.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

April 29, 2020 05:56 ET (09:56 GMT)

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