LONDON (Archyde.com) – Barclays’ half-year profit fell more than expected due to a charge of 1.9 billion pounds (2.27 billion euros), mainly to cover the costs of buying back structured products from UNITED STATES sold by mistake.
The bank reported first-half profit before tax of 3.7 billion pounds, down from 4.9 billion previously and just below the average of analysts’ forecasts of 3.9 billion pounds.
Barclays’ results were hit by a £1.3bn charge in the half-year to cover the costs of buying back $17.6bn of structured products it sold in violation of US regulations.
The loss would have been worse had it not been for a £758m gain made on a hedge placed by Barclays against losses resulting from the error.
Barclays has also set aside provisions to cover US regulator investigations into staff misuse of communications tools, which it said would cost a total of $200 million.
Despite the charges, the bank said it would pay a dividend of 2.5p per share and launch a £500m buyout.
(Reporting by Lawrence White; edited by Iain Withers, French version by Kate Entringer)