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Barclays q1 profits falls 10%

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Barclays q1 profits falls 10%

Barclays (LON:BARC) reported its results for the first quarter of 2019 on Thursday, sending shares downwards.

The British bank said that underlying earnings fell 10% in the first three months of the year to £1.5 billion, from £1.7 billion previously.

Whilst profit at its UK arm increased to £0.6 billion up from £0.2 billion a year ago, profits at Barclays International fell to £1.1 billion across the period.

Barclays said that whilst group cost guidance remains unchanged at £13.6-13.9 billion, costs will be reduced should the ‘challenging income environment’ continue.

The bank attributed the weaker results to its underperforming investment banking unit, which fell 20% during the quarter.

As a result, it is opting to cut bonuses in the division, as it looks to streamline costs.

Barclays chief executive Jes Staley said:

“Three years ago, we took a charge of just under £400 million to allow us to better align variable compensation accruals with the firm’s revenues.

What you see in the first quarter is Barclays using this discretion around variable compensation to manage our costs and deliver expected profitability.”

The latest results come amid increased pressure from Barclays’ activist investor Ed Bramson to join the company’s board.

Bramson, through his company Sherborne Investors, has a 5.5% stake in the British lender, making him its third largest shareholder.

The bank’s annual meeting is set to take place on May 2nd.

Shares in the bank are currently -2.14% as of 11:12AM (GMT).