Barclays 'disappointed' by pre tax profits

Source: Exec Digital UK

Date :07/08/2008 09:34:50

Barclays has released ‘acutely disappointing’ profits and writen off another £1 billion.

The reasons for the poor results have been put down to the ongoing credit crunch, which cut the Barclays Capital division profits by over two thirds to £524 million.

Exposure to the credit market has cost Barclays Capital almost £2 billion so far, including losses due to securities lost through backing the US sub-prime mortgages.

Barclays have said they would writedown a further £1 billion as it cuts its exposure to vulnerable credit markets in addition to the £1 billion it has already written off so far this year.

John Varley (pictured), CEO of Barclays Bank, said that last year had been “as difficult as we have experienced in many years."

"Although I take some comfort from our relative performance in managing our risks and in generating income," he continued, " a decline in profit of 33 percent is acutely disappointing. And I add to that my disappointment at the decline in our share price. Our shareholders have had to endure a lot."

Barclays has made pre-tax profits of £2.75 billion in the first half of this year, slightly more than analysts projected, but still 33 percent lower than results posted for the same period in 2007.