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| Barclays profits amid UK economic 'uncertainty' in UK | Barclays profits amid UK economic 'uncertainty' in UK |
| (about 8 hours 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. |
| The bank also announced a provision of £150m for "anticipated economic uncertainty" related to Brexit. | The bank also announced 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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 | Brexit concerns |
| Barclays is not the only bank to warn about the possible negative impact of Brexit on the economy. | 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". | 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." | 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. | |
| Commenting on the provision made by Barclays, Laith Khalaf, from stockbrokers Hargreaves Lansdown said: "As with all the UK banks, Brexit casts a shadow over valuations, despite improving fundamentals. | Commenting on the provision made by Barclays, Laith Khalaf, from stockbrokers Hargreaves Lansdown said: "As with all the UK banks, Brexit casts a shadow over valuations, despite improving fundamentals. |
| "Indeed Brexit uncertainty has prompted Barclays to put aside £150 million in case of deteriorating economic conditions in the UK. That could prove to be insufficient or over-cautious, depending on proceedings in Westminster and Brussels. Therein lies the puzzle of the UK banking sector which explains lowly share prices; like Schrödinger's cat, no-one's quite sure what state it's in." | "Indeed Brexit uncertainty has prompted Barclays to put aside £150 million in case of deteriorating economic conditions in the UK. That could prove to be insufficient or over-cautious, depending on proceedings in Westminster and Brussels. Therein lies the puzzle of the UK banking sector which explains lowly share prices; like Schrödinger's cat, no-one's quite sure what state it's in." |