Bad Debt Charge Overshadows Trading Surge at Barclays

Barclays set aside a higher than expected 1.6 billion pounds to cover a possible rise in loan losses in the second quarter and warned a grim outlook and low interest rates would hurt profits into 2021, Reuters reported. The COVID-19 pandemic has forced banks globally to set aside billions to cover bad loans and the British bank’s consumer business is under pressure from lower interest rates, smaller credit card balances and personal loan repayment holidays. Barclays booked pretax profit for the first half of the year of 1.3 billion pounds, down from 3 billion pounds a year ago as provisions against potential bad debts outweighed improved revenues from its investment bank. Barclays’ trading performance was a bright spot as virus-induced market volatility prompted a 60% jump in trading revenues in foreign-exchange, rates and credit trading. Read more