Barclays gets surprise core capital boost as profit climbs

Barclays gets surprise core capital boost as profit climbs

Barclays gets surprise core capital boost as profit climbs

The British bank on Thursday said total income was down 3% over the year to £21.5 billion, as the bank continued to exit businesses.

Stanley received £4.2 million for his first year in charge, while 365 of the bank's workers were paid more than a million.

"The spotlight is on the investment bank" where "we forecast a 40 percent year-on-year increase" in FICC income, in line with the average 43 percent jump at USA rivals, Deutsche Bank AG's David Lock and Kinner Lakhani said in a February 3 report.

Analysts gave the results a mixed reception.

Barclays reported a surprise increase in its core capital ratio on Thursday, as the bank took advantage of its rising profits to put money aside for expected demands on its cash from legal issues and worsening global market conditions.

The bank, which is still struggling to fix its reputation after the Libor rate-fixing scandal, is in the midst of a hefty fight with the US Department of Justice and the UK's Serious Fraud Office.

Group Chief Executive Officer, James Staley, commented: "Accelerating the closure of Barclays Non-Core is a key part of realising the potential of Barclays".

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"We haven't changed our risk appetite since the last financial crisis", he told investors, adding that he doesn't feel "unduly nervous about the balance sheet".

It saw a sharp fall in litigation and conduct costs for the year from £4.4bn in 2015 to £1.4bn last year - though conceded that the threat of USA action over past behaviour still hung over the business.

Its PPI bill fell to £1 billion in 2016 against £2.8 billion the previous year.

Barclays said it would now close its so-called non-core division in June, six months ahead of schedule.

Loss before tax in 2017 generated by Non-Core operations is expected to be approximately 1 billion pounds, excluding fair value gains or losses on the ESHLA portfolio.

Mr Staley has taken a contrarian bet by doubling down on the future of Barclays' investment bank while scaling back other businesses, such as Africa, to focus on the United States and United Kingdom and cutting the dividend in half. "I continue to believe that London will be the financial center for Europe even without the (EU's) single market and we're committed to the U.K".

Lloyds is trading 1.8% higher at 70.9p this morning, while HSBC is sliding again, 2% lower at 666p.

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