Barclays takes 1.3 billion-pound hit in credit crunch
Barclays bank said on Thursday it has taken a 1.3 billion-pound hit since the start of turmoil on the credit markets caused by the US subprime home loan crisis.
By Agencies |
LONDON: Barclays bank said on Thursday it has taken a 1.3 billion-pound (1.8 billion-euro, 2.7 billion-dollar) hit since the start of turmoil on the credit markets caused by the US subprime home loan crisis.
But the liability was far less than feared by analysts. On November 9, trading in Barclays shares was temporarily suspended after their price dropped by more than 9.0 percent on rumours it was to announce a massive writedown.
Chief executive John Varley said in a statement Thursday: "Today's extensive disclosure demonstrates the strength and resilience of our performance during the year and in particular during the turbulent month of October."
The statement added that trading for the first 10 months of 2007 at its Barclays Capital investment banking arm was ahead of the same period a year earlier, despite the 1.3 billion-pound writedown.
Ten-month pre-tax profits were made despite the bank having to write down 500 million pounds of credit, mortgage and leveraged finance-related charges in the third quarter.
There were an additional 800 million pounds in charges and writedowns in October.
But the liability was far less than feared by analysts. On November 9, trading in Barclays shares was temporarily suspended after their price dropped by more than 9.0 percent on rumours it was to announce a massive writedown.
Chief executive John Varley said in a statement Thursday: "Today's extensive disclosure demonstrates the strength and resilience of our performance during the year and in particular during the turbulent month of October."
The statement added that trading for the first 10 months of 2007 at its Barclays Capital investment banking arm was ahead of the same period a year earlier, despite the 1.3 billion-pound writedown.
Ten-month pre-tax profits were made despite the bank having to write down 500 million pounds of credit, mortgage and leveraged finance-related charges in the third quarter.
There were an additional 800 million pounds in charges and writedowns in October.
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