Barclays reports a huge profit increase of £3.1 billion for the first half of 2015 but also records about £1 billion losses for mis sold financial products such as PPI.
According to Executive Chair John McFarlane, Barclays has maintained itself a good business but it needs to accelerate its reforms and general overhaul to ensure its profitability is maximised and continues. He said the bank also needs to curtail its “marginal” activity to leave its 2015 dividend in the same value.
During the afternoon trading, Barclays shares increased by 2 per cent.
However, it has set aside more than £750 million for payment protection insurance mis selling alone despite its 25per cent profit increase. This was in addition to the £1.8 billion set aside by the bank early this year to compensate customers for packaged bank accounts and PPI.
Despite his ousting, Former Chief Executive Anthony Jenkins received the praise of McFarlane for his great work in improving the company’s businesses. As a stand-in, McFarlane said he would not aim to be as aggressive as his predecessors to improve the dividend value, opting instead to maintain the value of the dividends.