Barclays reports flat first-quarter profit as provision mars strong trading
Barclays Q1 2024 Financial Results Overview
Profit and Trading Performance
LONDON, April 28 (Reuters) - Barclays reported first-quarter profit in line with expectations on Tuesday, as a 200 million pound ($270 million) provision for a loss to a single company exposure was counterbalanced by a steady performance from its investment bank thanks to robust trading.
The British bank reported profit before tax for January-March of 2.8 billion pounds, slightly up from 2.7 billion pounds a year ago and in line with analysts' forecasts according to LSEG data.
Share Buyback Announcement
Barclays also announced a fresh 500 million pound share buyback.
Investment Bank Performance
Income at the investment bank rose 4% from a year ago to 4 billion pounds, in line with analysts' forecasts for 3.9 billion pounds.
Provision for Single Company Exposure
The British lender did not name the single firm that had triggered the 200 million pound charge at its investment bank.
Background on the Provision
Investors had been braced for such a charge, however, following the collapse in February of London-based MFS, a little-known lender that specialised in complex property-related loans.
The failure of MFS raised concerns about the checks that lenders including Barclays had made, as well as about the health of the broader private credit market.
Barclays is owed 495 million pounds from its exposure to MFS, a source familiar with the matter told Reuters at the time.
Additional Information
($1 = 0.7399 pounds)
(Reporting by Lawrence White; Editing by Tommy Reggiori Wilkes, Kirsten Donovan)
