Barclays Says Revenue Declined $797 Million in Two-Month Period
Barclays Plc (BARC), the U.K.’s second-largest bank by assets, said revenue for July and August was 500 million pounds ($797 million) lower than a year ago, hurt by a drop at its investment bank.
Revenue for the investment bank was “significantly below” the year-earlier period as fixed income, currencies and commodities’ earnings fell, the London-based bank said in a statement today. Adjusted income for the eight months to Aug. 31 will be 5 percent lower than in 2012. The measure excludes gains and losses on the bank’s own debt and compensation charges.
The bank is preparing to raise 5.8 billion pounds this month to bolster capital, in its first share sale since 2008. Chief Executive Officer Antony Jenkins is also shrinking assets by about 80 billion pounds to 1.5 trillion pounds and selling 2 billion pounds of loss-absorbing securities to meet calls by the regulator to cut leverage.
“Barclays continues to remain cautious about the environment in which it operates and its focus remains on costs, capital, leverage and returns in order to drive sustainable performance improvements,” the company said in the statement.
The Prudential Regulation Authority is imposing a 3 percent leverage ratio, forcing banks to hold 3 pounds of equity for every 100 pounds of assets to make the financial system safer.
The bank said it’s on target to meet an 18.5 billion-pound cost goal, excluding restructuring expenses, for 2013.
-- Editor: Jon Menon
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