Barclays PLC (NYSE:BCS) (LON:BARC) reported its first-quarter earnings this morning, posting a 25 percent drop in pretax profit as it focused on restructuring. It said earlier this year that it would cut almost 4,000 jobs as it shut down several of its divisions.
The bank took a €514 million charge to cover those job cuts, which are part of its Project Transform. The project is designed to restructure the bank’s operations. Barclays PLC (NYSE:BCS) (LON:BARC) is planning on another £500 million charge later this year in connection with its restructuring plans.
The bank’s pre-tax profit after adjustments was £1.8 billion ($2.7 billion), compared to £2.4 billion in the same quarter a year ago. Including a £251 million accounting charge, the bank’s first-quarter profits were £1.5 billion, compared to a loss of £525 million in the same quarter a year ago.
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Barclays PLC (NYSE:BCS) (LON:BARC)’s investment bank generated most of its pre-tax profit, posting strong first-quarter results. It posted an 11 percent increase in profits to £1.3 billion. The bank’s wealth management division posted pre-tax profits of £60 million—a 20 percent increase over the same quarter a year ago. Its retail unit reported pre-tax earnings of £299 million—a 28.8 percent increase over the same quarter a year ago.
Analysts expected the bank to report £7.8 billion in total net income of insurance claims and net operating income of £6.9 billion. Profit before tax was expected to be around £1.85 billion. Barclays PLC (NYSE:BCS) (LON:BARC)’s investment bank was expected to report total income of about £3.3 billion, net operating income of £3.2 billion and pretax profits of £.9 billion.
At the moment of this writing, shares of Barclays PLC (NYSE:BCS) (LON:BARC) were down 2.18 percent at the New York Stock Exchange, erasing Tuesday’s gains.