Further troubles for banking sector as Barclays warn that coronavirus could cost firm up to £2.1bn

Covid-19 News | Financial Services | International | Latest News

Barclays has warned that the ongoing coronavirus pandemic sweeping across the world could cost the bank up to £2.1bn. This sum is largely down to customers being unable to pay back loans.

The news follows the announcement that Barclays’ profits have fallen to £923m in the first quarter of 2020 – down from £1.54bn in the same period last year.

Despite these announcements, Barclays’ shares rose 5% in early trading to 102.7p and its investment banking division posted a 30% jump in profit.

Earlier today, rival lender bank HSBC posted similar troubles relating to the coronavirus.

Barclays’ CEO Jes Staley said: “We have taken a £2.1bn credit impairment charge which reflects our initial estimates of the impact of the Covid-19 pandemic. Given the uncertainty around the developing economic downturn and low interest rate environment, 2020 is expected to be challenging.”

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