{"id":197,"date":"2008-02-19T16:02:49","date_gmt":"2008-02-19T16:02:49","guid":{"rendered":"http:\/\/www.the-finance-zone.co.uk\/uncategorized\/barclays-profits-fall-to-7bn\/"},"modified":"2008-02-19T16:02:49","modified_gmt":"2008-02-19T16:02:49","slug":"barclays-profits-fall-to-7bn","status":"publish","type":"post","link":"https:\/\/the-finance-zone.co.uk\/index.php\/2008\/02\/19\/barclays-profits-fall-to-7bn\/","title":{"rendered":"Barclays Profits Fall to \u00c2\u00a37bn"},"content":{"rendered":"

Barclays has seen annual profits drop to \u00c2\u00a37.08bn, including a net loss of \u00c2\u00a31.6bn stemming from turbulence on the global credit markets.<\/strong> <\/font>Profits fell by 1% from \u00c2\u00a37.13bn a year earlier, but met market forecasts.<\/p>\n

Barclays’ shares have fallen 40% in the past year on uncertainty over its exposure to US sub-prime mortgages following the US housing slowdown.<\/p>\n

However, Barclays – which announced it would increase its dividend by 10% – said it was “confident” looking ahead. <\/p>\n

Shares in the firm fell 3% soon after the announcement, but later climbed, adding 4.6% to 481 pence by early afternoon trade.<\/p>\n

“Barclays delivered a resilient performance in 2007,” said chief executive John Varley.\u00c2\u00a0\"_44213747_barclays_ap_203b.jpg\"\u00c2\u00a0<\/p>\n

He said the bank “handled well the stress test of market turbulence in the second half of 2007”.<\/p>\n

Profits at Barclays Capital – the British bank’s investment arm – increased 5% to reach \u00c2\u00a32.34bn.<\/p>\n

“Overall, the numbers came in broadly in line with our expectations and consensus, and that’s a relief,” said Mamoun Tazi, an analyst at MF Global.<\/p>\n

“Barclays Capital performed in line despite the write-downs, which highlights the fact the underlying business is very strong.”<\/p>\n

However, the firm was not immune to the credit crunch. The bank said impairment charges and other credit provisions increased 30% to \u00c2\u00a32.79bn, including \u00c2\u00a3782m linked to the US sub-prime crisis.<\/p>\n

Barclays, like other banks, has been hit by exposure to the slowing US housing market, which has triggered a rise in mortgage defaults especially among risky – or “sub-prime” – borrowers.<\/p>\n","protected":false},"excerpt":{"rendered":"

Barclays has seen annual profits drop to \u00c2\u00a37.08bn, including a net loss of \u00c2\u00a31.6bn stemming from turbulence on the global<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[2,48],"tags":[],"class_list":["post-197","post","type-post","status-publish","format-standard","hentry","category-banking","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=197"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/197\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}