Barclays Profit Down as It Accelerates Plans to Close Some Business
James E. Staley, Chief Executive Officer, said Barclays to get rid of those non-core businesses was the key to unlocking the potential of the bank profits.
Since joining the bank in December,
The three month period ended June 30, Barclays reported a profit before tax of 677 million pounds,
or about $ 892 million.
That compared with a profit of £ 1.15 billion in the second quarter of 2015.
“The strategy is still the right one, in our opinion,” Mr. Staley during a conference call with journalists.
“Our strategy is based on th.e belief that you want to a variety of financial institution be great because we will not escape the turmoil that you have in economic cycles This is particularly noteworthy as we came out of the vote” Brexit “.
Mr. Staley said the bank saw “no reason”
to adjust its strategy or change the pace of their performance,
in light of the results of the referendum June 23 to leave the European Union, known as the Brexit departure.
Uncertainty about the economic impact of Britain’s decision to leave the bloc suffered by the financial markets and hit banking stocks in particular across Europe.
And Barclays shares fell nearly 22 percent in London between the vote and Thursday’s close. But its shares were up 6 percent to 155.35 pence in morning trading in London on Friday.
Since the British elections, and the Bank of England strongly indicated that economic pressures may push to cut interest rates as soon as next month.
The Lloyds Banking Group, the British banking rival, said on Thursday it would cut 3,000 additional jobs and close an additional 200 branches by the end of next year, and it warned that “the slowdown in growth seems likely” in Britain’s economy after the vote.