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Barclays reports mortgage demand driving growth of loan book

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  • 06/05/2014
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Barclays reports mortgage demand driving growth of loan book
Barclays has attributed the Q1 growth in its overall net book of loans and advances to increased demand for its mortgages, its interim management statement revealed.

In Q1 its total loan book for all advances grew by 1% to £137.8bn.

And the bank said the 7% year-on-year rise in income to £1,145m was driven by strong mortgage growth and and improvement of 4bps in the net interest margin to 132bps.

But the group’s total adjusted profit before tax fell 5%, to £1.69bn.

In the first quarter the investment bank suffered almost a 50% drop in profits.

Its adjusted profit before tax was £668m in the three months to the end of March, compared with £1.32bn over the same period last year.

Investment bank income fell 28%, to £2.49bn. 

The group has attributed the decline to a sharp drop in revenues from its fixed income, currencies and commodities (FICC) business as well as changes in business mix ahead of a strategic review.

Group chief executive Antony Jenkins said: “Profits have been impacted by the restructuring and de-risking activity we completed during the year.

“This included withdrawing from certain lines of business, investing to transform our operations and resolving legacy conduct and litigation issues.“

UK retail, Barclaycard and corporate banking were responsible for roughly half of the group’s income this quarter, he added.

At the end of March, the bank’s Payment Protection Insurance provision was £689m compared to £971m in 2013 following the use of £282m during the first quarter.

 

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