Profits at Barclays have fallen after a costly trading blunder in the United States.
In the second quarter of this year, Barclays suffered a significant drop in profits after taking a large provision for a costly trading blunder in the US.
According to Refinitiv, the British bank earned a net profit attributable to shareholders of £1.071 billion ($1.30 billion). The same period last year saw a 48% decline.
Barclays suffered litigation and conduct charges of £1.9 billion in the first half of the year, including £1.3 billion for US “over-issuance of securities.”
“This year, a British bank sold illicit structured notes.”
To put it another way, the British bank acknowledged this year that it sold $15,2 billion worth of structured notes in the United States above its legal limit.
Second-quarter litigation and conduct expenses of £1.3 billion were “significantly offset” by a hedge that earned £758 million in revenue, according to the bank.
As part of a settlement with authorities, Barclays set aside £165 million to cover a probe into the use of communication tools by employees in the financial sector.
Barclays raised its prior forecast for full-year operational expenses from £15 billion to £16.7 billion due to charges and a stronger currency.
After long-time CEO Jes Staley resigned following an inquiry by authorities regarding his relationship with Jeffrey Epstein, Venkat assumed control of the bank in November 2021.