Results round-up

Barclays reported a dip in profit in its first quarter on Wednesday, with group profit before tax at £793m in the three months to 31 March, down from £1.06bn a year earlier.

The FTSE 100 banking group said this reflected an 18% increase in core profit before tax to £1.6bn, though that was more than offset by an increased non-core loss before tax of £815m.

Adjusted PBT, which adds back £109m of negative fair value movements on own credit, fell 44% to £902m compared to the prior year, but was 7% ahead of consensus forecasts.

This was due to total income down 11% but 3% above consensus estimates at £5.04bn, while impairments were 11% lower than expectations, only partly offset by higher than anticipated costs.

“We promised to accelerate the pace of progress in reducing non-core so that our group performance converges with our core performance within a reasonable timeframe,” said chief executive James Staley.

“Since 1 January, we have made progress in exiting from Investment Banking in nine countries, completed the sale of our Portuguese retail, wealth and SME banking businesses, and are progressing other announced sales, including the Italian branch network, the Index business and our Asian wealth business, towards completion in 2016.”

The group’s return on average tangible shareholder equity was 3.8%, shrinking from 4%, though core return on tangible equity was up to 9.9% from 7.1%.

Group attributable profit decreased 7% to £433m, resulting in a basic earnings per share of 2.7p, down from 2.9p. Core attributable profit increased 53% to £950m, resulting in a basic earnings per share contribution of 5.8p.

In the UK division, Barclays delivered a return on tangible equity of 20.5%, down from24% last year. Underlying profit before tax fell 2% to £704m as lower income was partially offset by improved impairment, with underlying total operating expenses remaining broadly in line.

Net interest margins in the UK were relatively stable, rising to 3.62% from 3.6%.

Antofagasta said first quarter copper production rose 7.3% year-on-year to 157,100 tonnes, adding that movements in the copper price over the period suggesting the market was beginning to stabilise.

“However, with price growth likely to remain subdued in the near term our focus continues to be on operating safely, efficiently and profitably," the company said in a trading statement.

The production results include the first full quarter of production from Zaldívar and increases at Antucoya offset by lower production at Centinela Cathodes, as grade declined.

First quarter gold production rose 1.8% to 56,700 ounces against the last quarter of 2015 largely due to higher gold recoveries at the Centinela mine.

The company said group production and cash cost guidance for the full year was unchanged with an improvement in throughput expected at Los Pelambres and Centinela Concentrates, and in copper grade at Centinela Concentrates together with the continued ramp-up of Antucoya.

Copper production in the quarter was 7.5% lower against the fourth quarter of 2015 despite the production from Zaldívar and Antucoya following extended maintenance during the quarter at Los Pelambres coupled with lower production at Centinela Cathodes and no production from Michilla