Barclays posts 19% slide in annual net profit after costly U.S. trading blunder

LONDON — Barclays connected Wednesday reported a full-year nett net of £5.023 cardinal ($6.07 billion) for 2022, beating statement expectations of £4.95 cardinal but suffering a 19% autumn from the erstwhile year's restated £6.2 cardinal successful portion owed to a costly trading blunder successful the U.S.

Fourth-quarter attributable nett was £1.04 billion, supra expert projections of £833.29 cardinal but down 4% from the £1.08 cardinal posted successful the 4th fourth of 2021.

Here are the different fiscal highlights:

• Common equity tier 1 superior (CET1) ratio was 13.9%, compared to 13.8% successful the erstwhile 4th and 15.1% for the last 4th of 2021.
• Return connected tangible equity (ROTE) was 8.9% for the 4th quarter, compared to 12.5% successful the 3rd 4th and 13.4% for the 4th fourth of 2021. ROTE for the afloat twelvemonth was 10.4%.
• Net involvement borderline (NIM) was 2.86% for the afloat year, compared to 2.52% astatine the extremity of 2021.
• The slope booked £1.2 cardinal successful recognition impairment provisions, versus a £700 cardinal complaint successful 2021.

The British lender took a important deed from an over-issuance of securities successful the U.S., which resulted successful litigation and behaviour charges totaling £1.6 cardinal implicit the people of 2022.

The British slope announced aboriginal past twelvemonth that it had sold $15.2 cardinal much successful U.S. concern products — known arsenic structured notes — than it was permitted to.

Barclays CEO C.S. Venkatakrishnan said the radical performed "strongly" successful 2022.

"Each concern delivered income growth, with Group income up 14%. We achieved our RoTE people of implicit 10%, maintained a beardown Common Equity Tier 1 (CET1) superior ratio of 13.9%, and returned superior to shareholders," helium said.

"We are cautious astir planetary economical conditions, but proceed to spot maturation opportunities crossed our businesses done 2023."

The planetary unit, which includes Barclays' concern bank, saw instrumentality connected equity autumn to 10.2% for the afloat twelvemonth from 14.4% successful 2021, and to 6.4% successful the 4th fourth from 9.9% successful the aforesaid 4th of the erstwhile year. Profits besides tumbled successful the firm and concern banking division.