Barclays posts first-half profit of £2.98bn
by Gill Montia
Story link: Barclays posts first-half profit of £2.98bn
Barclays has reported 2009 first-half pre-tax profit of £2.98 billion, up 8% compared with a year ago.
The result reflects booming profit at the group’s investment division, Barclays Capital, which saw earnings up 100% on the first half of 2008.
However, it was below market expectations of around £3.5 billion.
Profit at the bank’s UK retail business fell to £268 million, down from £690 million a year ago and impairments and other credit provisions increased significantly to £4.56 billion, from £2.45 billion in the first half of 2008.
Barclays’ chief executive, John Varley, has reassured shareholders saying: “The investments we have made, particularly in our international businesses, are driving very strong income performance and allowing us to absorb the consequences of the economic downturn.”
The group also confirmed that the $13 billion sale of its cherished fund management business, Barclays Global Investors, to BlackRock, is expected to complete at the end of 2009 giving Barclays a stake of 19.9% in the enlarged BlackRock Global Investors business.