However, in a results statement chief executive Jes Staley (pictured) said the bank expects the impairment charge in the second half of the year to be lower than the first half.
The group posted profit before tax for the first nine months of £2.4bn.
In the UK specifically, Barclays returned to profitability in the third quarter, with profit before tax of £196m.
There was £3.2bn of mortgage growth, but total income decreased 12 per cent to £4.7bn.
Within this, Barclaycard Consumer UK income decreased 20 per cent to £1.1bn, as reduced borrowing and spend levels by customers resulted in a lower level of interest earning lending balances, as well as planned lower debt sales.
The bank said “income headwinds” in the UK are expected to remain into 2021 and cited the low interest rate environment.
And the outlook “remains uncertain and subject to change depending on the evolution and persistence of the COVID-19 pandemic and the outcome of Brexit negotiations”.
Staley said: “In this historically challenging year for our customers and clients we have continued to provide huge support to help people through the social and economic impact of the Covid-19 pandemic. This remains a priority, alongside maintaining the financial integrity of the firm and keeping our colleagues safe.
“For customers, we have provided over 640,000 payment holidays globally, and this is in addition to some £100m of income foregone in the form of waived overdraft interest and banking charges for our UK customers and business banking clients.”
