Barclays PLC (LON:BARC) (NYSE:BCS) reported a third quarter net loss of £106 million ($170 million) on Wednesday. Its results were hit by the provisions related to inappropriate sales of insurance to customers and its own debt. It was the first earnings report of Antony P. Jenkins at Barlcays, who took over from Bob Diamond in July after the latter was caught in a rate-rigging scandal. Mr. Jenkins said that the last three months have been tumultuous for the bank.
The third quarter profits saw a steep decline from the $1.4 billion profit reported in the same period last year. The bank set aside £700 million to pay the clients that were sold inappropriate insurance. Barclays PLC (LON:BARC) (NYSE:BCS) also took a £1.1 billion charge related to the value of its own debt. The British bank has already reserved £1.3 billion to reimburse clients.
If you exclude the adjustments, the firm’s pretax profits jumped a healthy 29 percent to £1.7 billion in the September 30 ending quarter. Its total income declined 2 percent to £6.9 billion. Earlier, Barclays PLC (LON:BARC) (NYSE:BCS) had agreed to pay a fine of $450 million to the U.S. and British authorities, after it was accused of altering the Libor rates for financial gain. The bank is now investigating its internal practices, and some of the employees may still face criminal charges. Tomorrow, David Walker will take over as the chairman of the bank, succeeding Marcus Agius, who had resigned due to Libor scandal.
During the third quarter earnings report, Barclays PLC (LON:BARC) (NYSE:BCS) said it is facing two new regulatory investigations. The SEC and Justice Department are investigating whether Barclays’ relationships with third parties are compliant with the U.S. Foreign Corrupt Practices Act. Some of the bank’s past power trading activities are also being investigated by the United States Federal Energy Regulatory Commission.
Barclays PLC (LON:BARC) (NYSE:BCS) said the profit at its investment banking division more than doubled during the quarter to touch £1 billion. However, the pretax profits at retail banking franchises fell 31 percent to £794 million.
The bank’s shares were down 3.1 percent to 231.35 pence in London trading.
