Barclays’ first-half profits fell 21% to £2.06 billion as it took a £372 million writedown on its French business, which it has agreed to sell to private-equity firm AnaCap, and another £400 million charge for PPI mis-selling.
Losses from non-core businesses also increased after Staley speeded up their sale or closure.
Barclays had the strongest performance of any European investment bank in the first half, according to Staley, and is likely to see a boost from the weaker pound in the second half because most of its business is done in dollars.
The extra PPI charge was unexpected, and takes Barclays’ total cost for the mis-selling scandal to £7.8 billion. It relates to a business the bank actually sold before the financial crisis but where it had indemnified the buyer, who is now dealing with past claims.
Staley said Barclays’ presence in Europe post-Brexit was vital but could be sorted in various ways.
“Maintaining our presence as a leading investment bank in European markets is very important,” he said. “So, too, is our credit-card business across northern Europe and particularly Germany, where we are the market leader.”
Barclays already has an Irish-registered business which could be used to passport financial services into the EU, and also a number of branches it might adapt across the region.
