Barclays suspends takeover due to fallout from trading error

A branch of Barclays Bank is seen, in London, Britain February 23, 2022. REUTERS/Peter Nicholls

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LONDON, April 28 (Reuters) – Barclays (BARC.L) has suspended its share buyback plans pending discussions with U.S. regulators over a possible restatement of its 2021 results following a trading error, overshadowing a better than expected earnings performance in the first quarter.

The British bank revealed last month that it had exceeded a US limit on sales of structured products, triggering new provisions and regulatory scrutiny. Read more

“Barclays remains committed to the share repurchase program and the intention would be to launch it as soon as possible following the resolution of SEC filing requirements,” the bank said Thursday.

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The lender previously said the £1 billion buyout would begin in the second quarter, after the error involving US structured products was disclosed.

Dealing with the fallout from the trading error poses an early problem for general manager CS Venkatakrishnan, who took over after Jes Staley’s shock exit in November.

Staley left following a dispute with UK financial regulators over how he described his ties to convicted sex offender Jeffrey Epstein. Read more

Barclays revealed it was hit by more than £500million in litigation and conduct costs in the quarter, including a £320million provision in its investment bank for the issuance error excessive.

Barclays on Wednesday reported pre-tax profit for the three months to March of 2.2 billion pounds ($2.75 billion), above analysts’ average forecast of 1.3 billion pounds and below 2, 4 billion pounds recorded in the same period last year.

Its CET 1 ratio, a key indicator of financial strength, fell 130 basis points to 13.8%, largely due to a 14.7 billion pound increase in risk-weighted assets at 328.8 billion.

($1 = 0.7990 pounds)

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Reporting by Lawrence White and Iain Withers, editing by Sinead Cruise

Our standards: The Thomson Reuters Trust Principles.

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