Barclays 1Q Pretax Profit Fell, But Beat Forecasts

By Sabela Ojea

Barclays PLC reported on Thursday a decline in pretax profit for the first quarter of 2022, which still came in ahead of market expectations, and said that it was keeping its capital and return on equity ratios for the year as a whole unchanged despite booking higher impairments.

The FTSE 100 listed lender posted a pretax profit for the quarter of 2.23 billion pounds ($2.80 billion) compared with GBP2.40 billion for the same period last year. It was expected to post a pretax profit of 1.32 billion pounds ($1.66 billion) for the first quarter of 2022, according to its own compiled consensus. Barclays's net profit fell to GBP1.40 billion from GBP1.70 billion for the same period last year. It was anticipated to fall to GBP464 million, taken from the bank's compiled forecasts.

Total income rose to GBP6.50 billion from GBP5.90 billion, it said.

The bank closed the quarter with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 13.8%, down from 15.1% as at Dec. 31, 2021. It was expected to post a ratio of 13.6%, taken from its compiled consensus.

Total operating expenses rose to GBP4.11 billion, when the market anticipated it to increase to GBP4.13 billion, according to the lender's compiled forecasts. This compares with operating costs of GBP3.58 billion for the year-earlier period.

"Acknowledging geopolitical uncertainty and cost of living pressures, the impairment charge is expected to remain below pre-pandemic levels in coming quarters given reduced unsecured lending balances and appropriate coverage ratios," the company said after booking a credit impairment charge of GBP141 million from a charge of GBP55 million for the same period last year.

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

(END) Dow Jones Newswires

April 28, 2022 02:48 ET (06:48 GMT)

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