Barclays sets aside further £1.6bn for bad loans

Alongside half-year results Barclays has set aside a higher than expected £1.6 billion to cover a possible rise in bad loans. That increase takes total provisions this year to £3.7 billion.

Barclays booked pre-tax profit for the first half of the year of £1.3bn, down from £3bn a year ago as provisions against potential bad debts outweighed improved revenues from its investment bank.

Shares were down 3.5%.

“While the remainder of 2020 will be challenging, our diversified model means we can remain financially resilient,” said chief executive Jes Staley.

“Although we will remain well capitalised . . . we may experience stronger capital headwinds in the second half. The board will decide on future dividends and capital returns at the year-end.”