Barclays pre-tax profit slips to $384m

12 February 2013

Barclays experienced a marked decline in its level of pre-tax profit during 2012, it has emerged.

New data released this morning (12 February) by the major British bank has shown that this figure slipped to £246 million ($384 million) last year - a significant drop on the profit of £5.9 billion registered 12 months earlier.

The financier attributed this downward trend primarily to the fact it has had to set aside much more money to deal with compensation cases it is facing due to issues such as the mis-selling of payment protection insurance (PPI) and interest rate hedging products (IRHP).

For instance, Barclays has now budgeted a total of £2.6 billion for PPI redress and £850 million for IRHP claims.

Antony Jenkins, chief executive of the bank, said 2012 represented a "difficult year" for both his organization and the entire banking sector.

"Change is needed both in our industry and at Barclays," he added.

By Gary Cooper

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