Barclays Profit Dented by Costs

By Max Colchester 

LONDON-- Barclays PLC said Thursday that third-quarter net profit inched down, as it put aside funds to cover bad debts and an ongoing restructuring plan.

The British bank said revenue in the third quarter was GBP5.5 billion ($6.72 billion), broadly flat compared with the year earlier. Net profit came to GBP414 million in the quarter, down from GBP417 million the year before.

Barclays said it remained on track to shut down its non-core unit in 2017. "The growing momentum in attaining our strategic goals means we can feel optimistic of our prospects of completing the restructuring of Barclays," Chief Executive Jes Staley said.

The bank took a one-off GBP320 million charge after changing the way it models its credit card impairments. It also put aside GBP600 million to compensate customers who were sold insurance products they didn't need. It also took a GBP150 million charge to shut down some international office space.

Over the last few months the bank has pushed ahead with shrinking its global footprint, exiting businesses ranging from Egypt to Italy. The cost of shuttering businesses also weighed on the bank's bottom line.

Write to Max Colchester at [e-mail]

(END) Dow Jones Newswires

October 27, 2016 02:45 ET (06:45 GMT)

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