Banking giant Barclays PLC (LON:BARC) has set aside a further £1.4bn to cover the fall-out from mis-selling of payment protection insurance (PPI).
The banking giant said profit before tax for the group as a whole in the first nine months of 2019 was £3.26bn, up from £3.12bn the year before, despite net income easing to £14.94bn from £15.24bn in the same period of last year.
The UK arm contributed just £0.4bn towards pre-tax profits (2018: £1.6bn), as the PPI provision this time round rose to £1.4bn from £0.4bn last year.
Barclays International’s profit before tax dipped to £3.5bn from £3.6bn last year.
$BARC.UK Reports Q3 adj Net £1.23B v £1.14B y/y, adj Pretax (ex litigation) £1.81B v £1.57B y/y, Rev £5.54B v £5.30Be (Barclays PLC)
Corporate & Investment Bank profit before tax £886M v £530M y/y, Rev £2.62B v £2.34B y/y
FICC Rev £816M v £688M y/y, Equities Rev £494M v £471M y/y
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Credit impairment charges for the group increased to £1.4bn from £0.8bn in the first nine months of 2018), due to what the bank described as “the non-recurrence of favourable US macroeconomic scenario updates and single name recoveries in the third quarter of 2018".
In the third quarter, the group delivered a return on average tangible equity (RoTE) of 10.2%, lifting the year-to-date RoTE to 9.7%; however, the lender warned that it might struggle to achieve its target of hitting an RoTE above 10% next year.
"For the year to September our group RoTE stands at 9.7%, including a 10.2% return in the third quarter,” said Jes Staley, the group’s chief executive officer.
“Profit before tax was just under £5bn, excluding litigation and conduct, and earnings per share were 19.7 pence for the nine months.
“These represent another set of consistent and resilient results, and they show the benefits of our diversified model – one which allows us to weather today's macro headwinds, and grow our businesses and profitability over time,” Staley declared.