Barclays' Profits Hit by Credit Crunch

The British bank's first-half pretax profits declined by one-third after it took $5.5 billion in credit-related writedowns

The credit crunch continues to take its toll on British banks. On Aug. 7, Barclays (BCS) revealed its first-half pretax profits fell by one-third, to $5.4 billion, after the bank took credit-related writedowns of $5.5 billion. Describing the bank's performance as "acutely disappointing," CEO John Varley all but apologized for the decline in company's share price over the past year: "Our shareholders have had to endure a lot."

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