Barclays plans tight cost control and close scrutiny
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.MARTIN TAYLOR, chief executive of Barclays Bank, said firm cost control and a closer examination of new lending would be central to the bank's strategy for the rest of the 1990s, as he unveiled record half-year pre-tax profits of pounds 1.234bn.
The profits were powered by a larger-than-expected fall in bad debt provisions to pounds 358m in the six months to 30 June, compared with pounds 997m last time. There was also a one-off pounds 87m profit from the sale of Barlcays' Australian retail and US factoring operations.
The United States Transition division, which is winding down mortgage and lending, cut its losses from pounds 301m to pounds 48m.
This helped to compensate for a fall in profits at BZW, the investment banking arm, which went from pounds 254m to pounds 194m. David Band, BZW's chief executive, said these were satisfactory results considering the turmoil in the bond and equity markets this spring, and that fees and commission rose by a fifth.
Mr Taylor said a fundamental rebuilding of Barclays had only just started. The recovery enabled the bank to increase the half-year dividend by 23 per cent, and the group's capital strength improved, raising the key tier one capital ratio to 7 per cent and taking the total risk-asset ratio to 11.1 per cent.
Mr Taylor said he would turn down new lending if it did not measure up to risk measurements. 'We are working on new techniques in general provisioning practice to measure the credit risks inherent in various parts of the lending book. The introduction of this new approach is complex, however, and will not be completed until the 1995 accounts.'
Pre-tax profits at Barclays Financial Services fell from pounds 90m to pounds 38m against a background of falling stock markets and lower sales. Following recent criticism by the Securities and Investments Board, Barclays Life has increased its level of provisions, first raised in 1993, for the costs of a review of its life and pensions business.
The life division has not divulged the provision against possible wrongful personal pension transfer business.
View from City Road, page 27
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments