View more on these topics

Barclays sets aside £500m for forex investigation

Barclays has set aside £500m in anticipation of the outcome of investigations into foreign exchange trading.

The bank’s quarterly interim management statement reveals it has also made a £170m provision against a “best estimate” cost of PPI compensation payments, and £160m for interest rate hedging redress.

In October 2013, the FCA announced it was investigating a number of firms relating to foreign exchange trading and in July this year the Serious Fraud Office launched a criminal investigation into alleged rigging of foreign exchange markets.

Bank of England governor Mark Carney has previously said he expected forex rigging to be bigger than the Libor scandal.

Group pre-tax profit increased 5 per cent in the year to September, from £4.7bn last year to £4.9bn this year.

But the investment banking division’s pre-tax profits fell 38 per cent year-to-date, from £2.2bn in 2013 to £1.3bn this year.

Group chief executive Antony Jenkins says the investment bank’s performance was “disappointing”.

He says: “These results, with a 5 per cent increase in profits before tax, show further steady progress towards our transform financial commitments for 2016, and demonstrate how our strategic decision to rebalance Barclays has created greater resilience in the group.

“Our core businesses – the future of Barclays – have delivered an ROE of 10.5 per cent, driven by our powerhouse personal and corporate banking business and continued strong growth in Barclaycard. The strength of our Africa Banking franchise is clearly visible despite currency headwinds.

“The investment bank’s performance in the quarter was disappointing, but we have been able to offset that within the rebalanced group and still deliver good core performance.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com