Barclays in good shape: new boss

Hillingdon Times: Barclays reported a quarterly loss of 47 million pounds, compared to more than two billion in profit over the same period last year Barclays reported a quarterly loss of 47 million pounds, compared to more than two billion in profit over the same period last year

New Barclays boss Antony Jenkins has insisted the bank is in good shape despite a torrent of reputation-scarring scandals and a £47 million quarterly loss.

Delivering his first set of results since taking over from Bob Diamond in the wake of the Libor-fixing affair, Mr Jenkins said the lender had "much to do to restore trust among stakeholders" but remained "strong and well-positioned".

Barclays reported a statutory loss of £47 million in the three months to September, compared with a £2.4 billion profit in the same quarter last year. The loss was driven by a £700 million hit to cover mis-sold PPI claims and a one-off £1 billion charge against the value of the bank's own credit.

But stripping out the impact of the PPI charge, the bank reported underlying pre-tax profits for the third quarter of £1.7 billion, compared with £1.3 billion last year.

The investment bank - the powerhouse built by Mr Diamond - more than doubled its third quarter underlying pre-tax profits to £937 million, while UK retail banking slipped 19% year-on-year to £400 million in the same period.

In the wake of the Libor allegations, the bank confirmed that it is being investigated by the US Department of Justice and US Securities and Exchange Commission into whether its relationships with third parties who assist Barclays to win or retain business are compliant with the United States Foreign Corrupt Practices Act.

It also said it is being investigated by the United States Federal Energy Regulatory Commission (Ferc) in relation to power trading in the western US between 2006 and 2008.

Marcus Agius will step down on Wednesday as chairman of the bank, as Sir David Walker prepares to take up the role from Thursday.

Barclays has endured one of the most turbulent periods in its history after it was fined £290 million by UK and US regulators for manipulating Libor, an interbank lending rate which affects mortgages and loans. Barclays is also in the midst of conducting its own internal investigation into the events.

As well as the Libor affair, the bank has faced mounting costs for mis-sold PPI and complex interest-rate swap arrangements. Shares in Barclays fell nearly 4% after it published the results.

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