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.”
