A sign hangs over the entrance to Barclays Plc’s branch in the City of London, UK
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Barclays reported net income of GBP 695 million (USD 765.64 million) for the first half of 2020, while increasing coronavirus related reserves.
The British bank added an additional GBP 1.6 billion to its loan impairment charges in the second quarter, rising to GBP 3.7 billion at the end of the first half of the year.
CEO Jes Staley told CNBC that the overall level of these loan loss provisions was achieved on the basis of “very conservative economic assumptions for the future”.
“Now we see that the economies are actually a little better than the assumptions we made in our models,” Staley told CNBC’s Squawk Box Europe.
Additional metrics at the end of the first half:
- The CET 1 ratio rose to 14.2% from 13.1% at the end of the first quarter.
- Revenue reached GBP 11.6 billion, compared to GBP 10.7 billion a year ago.
The bank said it would decide on future dividends and a return on capital policy at the end of the fiscal year. Inventories have been declining by 37% since the beginning of the year.
Despite the ambiguity caused by the pandemic, Barclays UK has seen “encouraging” numbers in mortgages.
Staley told CNBC that there have been more mortgage applications in the UK in the last few weeks than in the same period last year.