Barclays warned of challenges to its capital strength and souring loans at its consumer and corporate businesses as British lenders gear up to battle deteriorating economic conditions. “Any good news on Barclays capital is always welcome given that this is a perennial area of disappointment,” said Edward Firth, an analyst at Keefe Bruyette and Woods. Barclays already booked a £2.1 billion (€2.3 billion) charge in April, its biggest quarterly provision in a decade. Regulators, meanwhile, have relaxed some capital requirements and asked banks to halt dividends to ensure lending continues. Chief executive Jes Staley said last month that while spending has started to recover, a spike in unemployment could prompt a second economic storm.

Source: The Irish Times July 13, 2020 14:48 UTC