Barclays saw profits plummet by 34 per cent in the first half of the year, largely driven by the bank setting aside £1.3 billion to cover the costs of a trading error in the US.

Attributable profit for the first six months of the year was £2.5 billion, down from £3.8 billion in the previous year.

Group income, including £800 million of income from hedging arrangements related to the over-issuance of securities in the US, was up 17 per cent to £13.2 billion.

The bank said that the increased income was due to strong client activity in markets, recovery in consumer, cards and payments, and Barclays UK “more than offsetting” the impact of a weak fee pool in investment banking.

Barclays said that given the litigation and conduct charges, it now expects operating expenses to be around £16.7 billion, up from the £15 billion previously anticipated.

“Profit before tax was £3.7bn, and attributable profit was £2.5bn, after absorbing charges net of tax of £0.6 billion relating to the Over-issuance of Securities,” said C. S. Venkatakrishnan, group chief executive. “We are alert to the pressure that the rising cost of living will have on our customers and colleagues. We have a range of measures in place to help and are looking to do more.

“With our resilient income growth and balance sheet strength, we can provide that support while distributing excess capital, having announced a half year dividend of 2.25p per share and an intention to initiate a further share buyback of £500m."

Share Story: