"Barclays has set aside more than £800m to cover bad debts linked to a suspected fraud, as the lender moves to shore up its balance sheet amid mounting global uncertainty."
"Chief executive C.S. Venkatakrishnan acknowledged his disappointment, describing the incident as a 'well-publicised sophisticated fraud' that has forced the bank to tighten its approach to risk."
"Despite the hit, Barclays delivered a stronger underlying performance in the opening months of the year, with pre-tax profits rising 3pc to £2.8bn, supported by a 6pc increase in income across its core divisions."
Barclays allocated £823m for bad debts in the first quarter, significantly up from £643m the previous year, primarily due to a loss from a client in investment banking. This loss is associated with the collapse of Market Financial Solutions amid fraud allegations. The bank is now constraining lending to certain risky counterparties and is cautious due to geopolitical uncertainties and inflationary pressures. Despite these challenges, Barclays reported a 3% rise in pre-tax profits to £2.8bn, driven by growth across its core divisions and increased lending.
Read at London Business News | Londonlovesbusiness.com
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