Banking: Barclays annual profit falls short of City forecast
- Credit: PA
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.
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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.