leadf
logo-loader
viewBarclays PLC
(
LSE:BARC
)

Barclays resumes dividends but bad debts dent profits

Group profits for the year to end December 2020 fell by 30%

Barclays PLC -
Barclays CEO - Taking a cautious stance on Covid-19

Barclays PLC (LON:BARC) has restarted dividend payments following the lifting of the ban imposed by the FCA at the start of the first COVID-19 lockdown,

The FTSE 100 bank said it will pay the equivalent of 5p per share comprising a 1p dividend with the rest made up by a £700mln share buyback.

Analysts had been expected a bigger proportion for the dividend element, but the total size of the payment is £100mln larger than predicted.

In a statement, the bank said it understands the importance of delivering attractive total cash returns to shareholders.

Barclays added that group profits for the year to end December 2020 fell by 30% to £3.07bn after more than doubled bad debt provisions of £4.86bn that included £1.4bn for PPI.

Total income increased to £21.8bn with commercial and investment bank income up 22%, offset by a decline in credit cards of 22% and a 14% fall at Barclays UK,

In the final quarter, group profits dopped 44% to £646mln reflecting lower profits at Barclaycard, investment banking and higher head office costs.

Jes Staley, chief executive, said underlying profits had been stable over the year but impairment charges to reflect its cautious view of the impact of the pandemic totalled £4.8bn.

The fourth-quarter impairment charge of £500mln was down 19% from the previous quarter, he noted.

"Our CC&P [Barclaycard] business made a loss before tax of £388mln for the full year due to impairment charges, despite returning to profit in the third and fourth quarters."

Barclays UK profit before tax, excluding litigation and conduct, decreased 78% to £578mln, including £278mln in the fourth quarter, reflecting the impact of the COVID-19 pandemic driving higher impairment, he added.

Quick facts: Barclays PLC

Follow
LSE:BARC

Price: 182.72 GBX

Market Cap: £30.83 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Hochschild Mining reveals 'profitable' PEA on its heavy rare earths project...

Hochschild Mining Head of Investor Relations Charles Gordon joined Proactive New York to discuss the Peru-based gold and silver miner's recent developments within its heavy rare earths project, recently renamed Aclara. Gordon says the group recently revealed a preliminary economic assessment...

15 hours, 6 minutes ago

Form 8.3 - NORTONLIFELOCK INC AMENDMENT

15 hours, 14 minutes ago

Form 8.3 - NORTONLIFELOCK INC- AMENDMENT

15 hours, 15 minutes ago

Form 8.3 - GAMESYS GROUP PLC

15 hours, 48 minutes ago

Form 8.3 - MEGGIT PLC

16 hours ago

FORM 8.3 – CHARLES STANLEY GROUP PLC

16 hours, 10 minutes ago

FORM 8.3 – BLUE PRISM GROUP PLC

16 hours, 11 minutes ago

2 min read