Barclays third-quarter profit declines on settlement costs
Barclays posted a drop in third-quarter pre-tax profit as the cost of claims settlements weighed on results and revenues fell.
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Third-quarter adjusted pre-tax profit slid to £1.43bn from £1.59bn in the same period last year, missing the average forecast of £1.65bn from analysts polled by the company, as revenue declined to £6.11bn from £6.38 in 2014.
Statutory pre-tax profit fell to £861m from £1.22bn in the third quarter of 2014.
The company paid out £560m in compensation to customers who had been missold foreign exchange products and to settle claims over US mortgage-backed securities.
On Wednesday, Barclays confirmed the appointment of former JPMorgan investment banking head Jes Staley as its new chief executive, replacing Anthony Jenkins.
Chairman John McFarlane said: “Today's results show another quarter of progress in our core businesses alongside the early effects of some of the changes that we are making.
“As we align Barclays around our three priorities - focus on core (segments and markets), generating shareholder value, and instilling a high performance culture with strong ethical values - we now have a forward agenda that has been discussed and agreed with Mr. Staley. We will update the market on our plans for structural reform after we have agreed them with the regulator.”