Barclays says £4.8bn in loans may never be repaid

Barclays forced to set aside £4.8bn to cover loans unlikely to be paid back because of economic damage caused by the health crisis

Barclays bank reported a 30 per cent plunge in annual profits, having set aside billions of pounds for loans which are not expected to be paid back due to the pandemic.

The bank reported a fall in pre-tax profits to £3.1bn ($4.3bn, €3.5bn) for 2020, down from £4.3bn the year before.

It was forced to set aside £4.8bn to cover loans unlikely to be paid back because of economic damage caused by the health crisis.

However, the bank announced it would resume dividends, with a payment of 1p per share to shareholders.

The bank has been one of the biggest emergency loan providers during the pandemic, having given around £27bn worth to businesses.

It has also provided more than 680,000 payment holidays globally for customers with mortgages, credit cards and loans.

What is your sentiment on BARC?

1.4640
Bullish
or
Bearish
Vote to see community's results!

Around £492m was also set aside to cover expected defaults by borrowers in the final three months of 2020, but that was down nearly a fifth on the previous quarter.

Barclays added that investment banking trading had helped to recover the impact of the Covid crisis on its retail arm, with its "best ever year" for markets and banking income helping to keep the group in profit.

Meanwhile, Barclays CEO Jes Staley said the bank has no plans to make “a major real estate move”, after he said in April last year that the pandemic could change the way people work, prompting assumptions they may vacate the buildings they occupy in London’s Canary Wharf financial district.

“We will keep a significant presence in Canary Wharf, no one has a crystal ball as to how this will all unfold but right now there is no plan on our part to make a major real estate move,” he said.

FURTHER READING: Deutsche Bank sees profit in 2020 boosted by investment division

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image