Barclays profits plunge by 71%

Barclays bank has announced a sharp drop of 71% in statutory profits for the first half of...

14:43 28 July 2012

Barclays bank has announced a sharp drop of 71% in statutory profits for the first half of the year amid the aftermath of the Libor rate fixing scandal.

 

The disgraced bank said the statutory profit before tax to June 30 was £759m, a drop of £1.885bn in 2011. Barclays pointed to mis-selling compensation and fines for conduct as deciding factors in the fall.

 

The fines in question came from the US and UK regulators who slapped Barclays with £290m fees for rigging the industry's inter-bank lending rate. 

 

The Libor scandal led to the resignation of chief executive Bob Diamond who is yet to be fully replaced.

 

Reports from numerous media sources have suggested that former chief operating officer Jerry del Missier will bag a pay-off worth £8.75m but Barclays have yet to confirm or deny this housecleaning. 

 

So far Barclays have been the only real villains revealed by the media but the very essence of inter-banking rate fixing does suggest that more 'dirty' banks will soon be coming to light.

 

Despite all this, shares in the bank were up more than 4% in early Friday trading.

 

Executive chairman Marcus Agius said: "We are sorry for what has happened because of recent events.

 

"Our customers and clients are at the heart of what we do.

 

"I am confident we can and will repair the reputational damage done to our business in their eyes and those of all our stakeholders."

 

Releasing the figures, Barclays were quick to point out their more positive aspects of their trading ideals citing that they delivered £20.5bn in gross new lending to UK households and businesses.