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Barclays profits amid UK economic 'uncertainty' in UK | Barclays profits amid UK economic 'uncertainty' in UK |
(32 minutes later) | |
Barclays has reported a profit of £3.5bn for 2018, unchanged on the previous year. | Barclays has reported a profit of £3.5bn for 2018, unchanged on the previous year. |
Its UK business made a provision of £150m for "anticipated economic uncertainty" related to Brexit. | Its UK business made a provision of £150m for "anticipated economic uncertainty" related to Brexit. |
If the economy suffers after the UK's departure from the EU, the extra allowance will help Barclays cover costs such as rising bad debts. | |
The bank's chief executive, Jes Staley, said 2018 had been a "very significant" year, with several issues resolved. | |
Last year, it took charges of £2.2bn to cover legal issues and fines, including a large settlement with US regulators and, in the UK, compensation over PPI. | |
Barclays confirmed that it will pay a dividend of 6.5p this year. | Barclays confirmed that it will pay a dividend of 6.5p this year. |
The company's management is under pressure from US-based financier Edward Bramson to raise its performance. | The company's management is under pressure from US-based financier Edward Bramson to raise its performance. |
Mr Bramson owns a 5.5% stake and wants to take a seat on the board. In particular, he thinks Barclays should scale back its investment bank. | |
Last year, the investment bank reported a 15% increase in profits to £2.6bn. | |
In a statement accompanying the latest results, Mr Staley said his plans would be good for shareholders. | |
He said the bank planned to return a greater proportion of its earnings to shareholders, including buying back shares in the company, a move which traditionally supports the share price. | |
Brexit concerns | |
Barclays is not the only bank to warn about the possible negative impact of Brexit on the economy. | |
Last week, RBS chief Ross McEwan said the UK economy faced "a heightened level of uncertainty related to ongoing Brexit negotiations". | |
He told the BBC: "Larger corporations are pausing on their investments. And this cannot be good for the economy long-term, because those large corporations then employ smaller businesses and individuals." | |
At the end of last year HSBC also raised its provision for economic uncertainty in the UK by £165m to £410m. |