Barclays has said that pretax Q1 profit fell 25%, missing analyst estimates, as it took a charge for restructuring its money-losing operations in Europe.
Bloomberg reports that pretax profit excluding losses on the valuation of the lender’s debt fell to $2.7bn from $3.66bn in the year-earlier period, the London-based bank said in a statement Wednesday.
Chairman David Walker and Chief Executive Officer Antony Jenkins, 51, who took over after the lender was fined a 290 million pounds in June for rigging the London interbank offered rate, are trying to cut costs by stripping out layers of management and boost regulators’ confidence in the company. The lender booked a $783.6m charge under its Transform program after closing branches in Europe and cutting investment banking positions in the region and in Asia.
'In our goal to become the ’Go-To’ bank we have not chosen an easy path for Barclays, but we have chosen the right one', Jenkins said in the statement.
Pretax profit at the investment banking unit, which generates more than half of pretax profit, rose to $2.01bn from $1.79bn.
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image: © Dick Johnson