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Barclays slides to £1.4 billion loss as PPI costs spike

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LONDON – Barclays made an attributable loss of £1.4 billion in the second quarter, hit by increased PPI costs and losses resulting from the sale of its Africa unit.

Revenue fell 15% to £5.06 billion, while the bank’s cost to income ratio rose to 72%, up from 71% in the same period last year.

In a statement on Friday, CEO Jess Staley said: “Our business is now radically simplified, the restructuring is complete, our capital ratio is within our end-state target range, and while we are also working to put conduct issues behind us, we can now focus on what matters most to our shareholders: improving Group returns.”

Barclays recognised a £700 million charge for PPI claimants in the first half of the year, up from £400 million a year ago. Revenues at Barclays’ investment banking arm dropped 10%, while profits fell by almost a third.

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