Barclays Profits Hit By Further PPI Claims

Barclays have announced that pre-tax profit are down 2% to £5.4 billion.

These results come as it was announced that Barclays would divide into two divisions – Barclays UK and Barclays International- and scale down its operations in Africa.

It was also announced that they would be forced to take another PPI charge of £1.45 billion, taking the total to £7.42 billion.

Barclays claimed it was splitting the company into two divisions as part of a ring-fencing initiative, which is designed to protect risky investment banking and keep it away from the retail sector in order to protect public savings in the event of another financial crash.

In the bank’s annual report, which was published along with results, said a ‘disruptive and uncertain’ exit from the EU, combined with wider woes in commodity and financial markets, would hit investment and confidence, which could have a “material impact” on growth across some of its major markets and as a result, hit the bank’s performance.