This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/feb/12/barclays-results-where-it-makes-its-money

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Barclays results: where the bank makes its money Barclays results: where the bank makes its money
(7 months later)
"Performance in January has shown a good start to the year across the group," said Chris Lucas, the outgoing finance director of Barclays. It's just a single line but, in his deadpan delivery, Lucas also claimed it was "one of the my most optimistic outlook statements" since taking up the post just before the 2007 credit crunch took hold."Performance in January has shown a good start to the year across the group," said Chris Lucas, the outgoing finance director of Barclays. It's just a single line but, in his deadpan delivery, Lucas also claimed it was "one of the my most optimistic outlook statements" since taking up the post just before the 2007 credit crunch took hold.
He dismissed suggestions that the £290m Libor rigging fine had encouraged customers to shift their current accounts even though the data published alongside the full-year results showed a fall in the number of current accounts to 11.7m from 11.9m. Lucas, who is under investigation by the Financial Services Authority for the way disclosures were made during the crucial 2008 fundraising that helped the bank avoid a taxpayer bailout, insisted performance in the UK business was "very good".He dismissed suggestions that the £290m Libor rigging fine had encouraged customers to shift their current accounts even though the data published alongside the full-year results showed a fall in the number of current accounts to 11.7m from 11.9m. Lucas, who is under investigation by the Financial Services Authority for the way disclosures were made during the crucial 2008 fundraising that helped the bank avoid a taxpayer bailout, insisted performance in the UK business was "very good".
In fact, statutory profit in the UK business was down 71% to £292m because the division took £1.2bn of the £1.8bn provision for mis-selling payment protection insurance. Barclaycard took the rest of the PPI provision but reported an increase in profits to £1bn.In fact, statutory profit in the UK business was down 71% to £292m because the division took £1.2bn of the £1.8bn provision for mis-selling payment protection insurance. Barclaycard took the rest of the PPI provision but reported an increase in profits to £1bn.
The European retail and business banking arm remained troubled, with losses of £239m.The European retail and business banking arm remained troubled, with losses of £239m.
The investment bank continued to dominate the results, generating £4bn of statutory profits– up 37% from a year ago – while corporate banking plunged to a loss of £299m, largely because of a £850m provision for mis-selling interest rate swaps to small businesses. Profits in wealth management rose 52% to £315m while in Africa profits were 44% down at £468m.The investment bank continued to dominate the results, generating £4bn of statutory profits– up 37% from a year ago – while corporate banking plunged to a loss of £299m, largely because of a £850m provision for mis-selling interest rate swaps to small businesses. Profits in wealth management rose 52% to £315m while in Africa profits were 44% down at £468m.
The head office took most of the losses – £5.4bn compared with £947m of profits a year ago – as this is where the accounting quirk relating the cost of buying back the bank's own debt is taken. In 2012, it was a loss of £4.5bn compared with a profit of £2.7bn a year ago. The cost of the Financial Services Compensation Scheme rose to £125m from £45m and the bank levy increased to £345m from £325m. This operation also took the £290m Libor fine. Overall it came out at a statutory profit of £246m.The head office took most of the losses – £5.4bn compared with £947m of profits a year ago – as this is where the accounting quirk relating the cost of buying back the bank's own debt is taken. In 2012, it was a loss of £4.5bn compared with a profit of £2.7bn a year ago. The cost of the Financial Services Compensation Scheme rose to £125m from £45m and the bank levy increased to £345m from £325m. This operation also took the £290m Libor fine. Overall it came out at a statutory profit of £246m.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.