Barclays delivers on dividend despite 2017 disappointment

Andrew Cummings
February 22, 2018

However, the British bank also recorded an after-tax loss of £1.9bn for past year, following tax charges related to Donald Trump's tax reforms and further litigation provisions.

Jes Staley, chief executive (left), said: "We have a portfolio of profitable businesses, producing significant earnings, and have plans and investments in place to grow those earnings over time".

Pretax profit, excluding litigation costs, rose slightly to £334 million, missing the average £570 million average estimate of 14 analysts compiled by the bank. While Barclays made an attributable loss on nearly £2 billion, pre-tax profits rose strongly, increasing by 10% from the previous year to £3.5 billion.

British banking giant Barclays made a net loss of £1.9 billion past year as continuing PPI payments and the impact of the USA's new tax rules hit the bank's bottom line.

It intends to pay a 6.5p dividend in 2018 after keeping the payout unchanged at 3p in 2017.

Mr Staley said the group was already starting to "see some of the benefits of our work" in 2017.

Chief Financial Officer Tushar Morzaria said that the bank had gained market share, with business down in dollar terms by 10 per cent compared with 20 per cent at its biggest United States rivals.

On an after-tax basis, the company recorded an attributable loss of 1.9 billion pounds, compared to profit of 1.6 billion pounds a year ago. The British government previous year said it will require all companies with more than 250 employees to publish their gender pay data by April 2018.

The former JPMorgan investment banker, who took charge of the lender in December 2015, comes from a culture where bonuses are the barometer of performance.

Barclays pay committee will keep Staley's 2016 "variable remuneration under review pending the outcome of the investigation relating to his involvement in a whistle-blowing matter", it said.

"In addition, the group has re-iterated all of its medium-term financial targets albeit noting that the percentage group effective tax rate will be lower than previously guided as a result of the impact if U.S. tax reform".

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