International BusinessBarclays H1 profit rises 10% at 1.88 bn pounds
Global banking major Barclays today reported a 10 per cent growth in net profit at 1.88 billion pounds in the first half of 2009, bolstered by strong performance of its investment banking arm.
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In the year-ago period, the net income was 1.71 billion pounds, Barclays said in a statement.
However, the bank saw higher impairment charges in the retail banking segment, especially in India and UAE.
The banking entity"s total income jumped by 37 per cent to 16.25 billion pounds in the first six months of the current fiscal.
The company posted an eight per cent increase in profit before tax (PBT) of 2.98 billion pounds for the half year ended June 30, 2009.
"The environment has remained very difficult in 2009 as a consequence of the onset during 2008 economic recession in most parts of the world in which we operate. But we were nonetheless solidly profitable, reporting a first half profit of 3 billion pounds," Barclays said.
The group"s investment banking arm Barclays Capital saw its PBT double to 1.04 billion pounds as a result of a strong performance in the underlying business, including the impact of the Lehman Brothers North American businesses acquisition.
"Barclays Capital top-line income more than doubled to 10.48 billion pounds with very strong performances across client franchises in the UK, Europe and Asia and a transformation in the scale and service offering in the US enabling absorbtion of credit market losses and impairment," the statement said.
In the retail and commercial banking segment, the company reported a loss befor tax of 86 million pounds during the first half of 2009 from emerging markets including India.
The division had a profit of 52 million pounds in the same period a year ago.
"Impairment charges increased to 147 million pounds to 213 million pounds with marked increases in the retail segment, particularly in India and UAE, as a result of rising unemployment," the statement added.
Overall, impairment charges shot up 86 per cent to 4.55 billion pounds as compared to the year-ago period.
"Our goal for 2009 is very clear-we seek to deliver another year of solid profitability. Our first half performance is a good start to this," the statement noted.