Barclays H1 losses in UAE and Asia hit £232m

British bank Barclays on Thursday said its losses in New Markets – which include the UAE, India, Pakistan and Russia – widened 22 per cent to £232 million (Dh1,353m) at the end of first half of this year from £190m for the same period last year due to restructuring charges.

In a statement released on Thursday, the bank said corporate segment took £93m in restructuring costs but they were partially offset by a substantial reduction in impairment charges, particularly in retail business.

John Varley, Group Chief Executive of Barclays, said: “We are restructuring our New Markets and continental Europe businesses, both of which were loss-making in the half. In Barclays Corporate, we are restructuring the business in New Markets and will take a charge of approximately £100m this year in this context.

“We expect a strong, well-integrated regional (not global) corporate bank to emerge from this work offering world class cash, trade, credit and hedging capabilities in Europe, Africa and certain Asian markets to both larger local corporates and to subsidiaries of global multinationals, with a strongly integrated investment banking product and advisory offering.”

The bank’s income dropped 25 per cent in New Markets to £132m in H1 2010 against £176m for the same period last year.

Barclays Corporate recorded a loss before tax of £377m against profit of £152m in 2009, as losses in Continental Europe and New Markets more than offset increased profits in the UK and Ireland operation.

In Continental Europe and New Markets income decreased due to higher funding costs and lower treasury management income as well as reduced risk appetite.

Barclays Corporate staff numbers decreased 1,000 to 11,900 primarily in New Markets as part of restructuring.

Barclays group profit rose 29 per cent in the first half to £2.4bn and provisions for bad oans fell by a third.

Pretax profits in the bank’s Barclays Capital unit more than trebled to £2.55bn.

Barclays said Thursday that revenue was up 8 percent to £16.6bn.

Pretax profit rose 44 per cent to £3.95bn.
 

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