Barclays profit drops in first quarter on higher costs

BARCLAYS on Thursday (28) announced an 18 per cent drop in net profit during the first quarter on litigation and bad debt charges.

Profit after tax declined to £1.4 billion compared with £1.7 bn in the first three months of 2021, the British bank said in an earnings statement.

"We remain focused on the impact higher prices are having on our customers and our small business and corporate clients, all of whom are facing far harder conditions this year as a result of inflation, supply chain issues and higher energy costs," Barclays chief executive CS Venkatakrishnan said in the earnings statement.

"We will support them through this difficult period wherever we can, and support the wider economy just as we did through the Covid-19 pandemic," he added.

Barclays booked an already-flagged litigation hit of £500 million after selling more products to investors in the US than it was allowed.

It also took a hit of £141m on bad debt charges as customers struggle to pay back loans amid soaring inflation.

(AFP)