Barclays reports £1.2bn loss after costs of PPI claims and disposal of Africa shares

Alys Key
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Barclays has been hit with costs from PPI claims and lost income from its Africa business (Source: Getty)

Barclays has reported an attributable loss of £1.2bn for the first half of the year, following one-off costs.

The group increased pre-tax profits before the exceptional costs to £2.3bn, but the cost of discontinuing operations wiped nearly £2.2bn off the balance sheet. A further £700m went towards paying off PPI.

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But chief executive Jes Staley said the disposal of shares in Barclays Africa had helped streamline the business for profits.

He said: "Our business is now radically simplified, the restructuring is complete, our capital ratio is within our end-state target range and, while we are also working to put conduct issues behind us, we can now focus on what matters most to our shareholders - improving group returns."

Total revenues decreased 15 per cent to £5.06bn, missing market expectations of around £5.28bn.

Read more: Lloyds Bank misses estimates as it sets aside a further £1bn for PPI claims

Group return on tangible equity (RoTE) slipped 4.6 per cent.

Staley said the group would set a new target of 10 per cent RoTE "over time", but did not give a target deadline.

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After initially falling, Barclays shares were trading slightly up, flirting with 300p.

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