Overview
- Pre-tax profit came in at £2.1bn, down 7% year on year, after adding £235m to motor finance redress, taking the total provision to £325m, which Barclays says is a reasonable estimate as it challenges elements of the FCA’s proposal.
- Credit impairment for the quarter was £600m, including about £110m tied to the collapse of US subprime auto lender Tricolor, while Barclays said it declined lending to failed auto-parts firm First Brands.
- Barclays reported £20bn of private-credit exposure, roughly 6% of its £346bn loan book and about 70% in the US, with the CEO asserting strong controls over lending to portfolios run by large managers.
- The Bank of England and the IMF have warned that recent failures in private credit could pose broader risks to the financial system, increasing attention on banks’ linkages to the sector.
- The bank announced a £500m share buyback, plans to switch to quarterly payouts, upgraded its profitability guidance, and pointed to income gains and £500m of cost savings delivered earlier than planned.