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Barclays secures capital ahead of potential coronavirus-caused loan losses

Tuesday 14 July 2020 13:45 CET | News

Barclays has announced that recent regulatory changes had boosted its core capital, giving the UK-based bank a buffer to absorb any further loan losses during the coronavirus crisis.

The bank said it expected to report a CET1 capital ratio of 14% in half-year results in July 2020, up from 13.1% at the end of March 2020, and ahead of market expectations. Barclays expected risk-weighted assets to be lower than previously anticipated. The bank said its half-year results would reflect challenging income and impairments in its consumer and corporate business, but strength in its markets income, according to Reuters.

Barclays shares were up nearly 2% following the announcement. It was likely other banks could see a similar boost to capital from the recent rules changes, including a softening of capital accounting rules rolled out in June 2020, according to a Goodbody staff statement to Reuters.

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Keywords: Barclays, capital, loan losses, coronavirus, banks, CET1 capital ratio, income, impairments, market income, regulatory changes
Categories: Banking & Fintech | Payments General
Countries: United Kingdom
This article is part of category

Banking & Fintech