Barclays sets aside £823m for bad debts after fraud hit but profits rise

Dan Coatsworth, head of markets at AJ Bell, said: “Barclays’ results were fine but not fantastic.

“Profit was as expected while the CET1 ratio – a key measure of a bank’s financial strength – was a touch below consensus.

“As is common with the banking sector, there were a few nasty surprises to remind the market that not everything goes in the industry’s favour.

“A £105 million increase in the motor finance provision was a memo that the compensation scheme is still a moving feast.

“Barclays even warns that the ultimate financial impact of the event could still differ from current estimates.

“The bank has also set aside £823 million for bad debts, partially related to a fraudulent customer within its investment bank.

“This is an increase from a £643 million provision in its first quarter results a year ago and is thought to be linked to the collapse of UK property lender Market Financial Solutions – though this is not confirmed in Barclays’ results.”