Barclays profits drop 20% amid £400m PPI hit

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Barclays has seen its profit for the first half of the year drop 23 per cent, as it set aside a further £400m to cover redress for missold payment protection insurance.

Overall Barclays posted a profit of £2bn for the first half of the year, down 23 per cent from £2.6bn at the same time last year. Its quarterly net profits were £803m, down a third from the £1.2bn posted in the same quarter a year ago.

Barclays’ redress bill is down from £967m in the same period last year, while its total bill for PPI misselling to date is £7.8bn.

The bank had 1,331 branches at the end of June, 117 fewer than at the end of June 2015.

Barclays chief executive Jes Staley says: “Our priorities remain: strengthening our core businesses, closing Barclays non-core as fast as possible, eliminating costs, dealing with legacy issues and steadily strengthening our capital position.

“We remain confident that is the right plan for Barclays and see no reason to adjust it, or the pace of delivery, in light of the vote by the UK last month to exit the EU.”

Laith Khalaf, senior analyst at Hargreaves Lansdown, says:Barclays is a bit of a Jekyll and Hyde character at the moment, but Doctor Jekyll is starting to gain more control, as all the grisly bits of the bank get wound down.

“Barclays remains a bank in transition and more skeletons may come out of the closet as the bad bank is gradually disposed of. The risk is an economic storm hits while Barclays is still mending the roof.”