Banking: Barclays annual profit falls short of City forecast
13:00 10 February 2014
Banking giant Barclays today revealed a profits haul of £5.2billion for 2013 after taking the unusual step of announcing its headline figures a day early.
The stock market disclosure came after a report in the Financial Times that the bank was set to announce a one-third fall in operating profits to £5.17bn, alongside a trebling in bottom-line profits to £2.86bn.
Barclays, which is due to announce its annual results in full at 7am tomorrow, confirmed that the figures were set to be £5.2bn and £2.9bn respectively.
The FT forecast a slight drop in income to £27.9bn, adding that the sharp rise in statutory profit reflected lower charges on the value of its own debt.
The underlying profit figure of £5.2bn is slightly below the consensus forecast in the City for around £5.4bn.
The drop in profits follows a year in which Barclays added £2bn to its bill for customer mis-selling scandals and was forced to ask shareholders for £5.8bn in a rights issue after revealing a £12.8bn hole in its finances.
Chief executive Antony Jenkins will, as scheduled, also give an update tomorrow on his Project Transform programme to overhaul the bank’s culture and practices.
The review was launched in the wake of the bank’s £290million Libor-rigging fine and Mr Jenkins’s appointment as successor to former boss Bob Diamond.
It has been reported that Barclays is planning to axe several hundred jobs at a senior level in its investment banking business as well as ordering staff to cut out all non-essential overseas travel to slash costs.
The group will also be pressed on branch closures, in spite of its denial of recent reports that up to a quarter of its 1,600 sites in the UK could close.