Key facts
- Barclays' first-quarter pretax profit of £1.69 billion missed analyst estimates of £1.82 billion.
- Investment bank revenue dropped 49% to £668 million.
- FICC revenue fell 41% to £1.2 billion, a significant decline.
- Compensation costs rose to 46% of investment bank revenue.
- Net income beat estimates, rising 15% to £965 million, aided by lower loan provisions.
Barclays Plc reported first-quarter pretax profit of £1.69 billion, missing analyst estimates and marking a 5% decline from the previous year. The lender's investment bank saw a significant drop in revenue, with Fixed Income, Currencies and Commodities (FICC) income falling 41% to £1.2 billion. Equities and prime services revenue also declined 5% to £674 million.
Analysts expressed concern over the performance of the FICC business, traditionally a core strength for Barclays. Compensation costs within the investment bank rose to 46% of revenue, and total costs consumed 75% of the unit's income, up from 63% a year earlier. Despite these challenges, net income rose 15% to £965 million, aided by a 22% decrease in provisions for loan impairments. The Barclaycard unit also saw a 17% increase in pretax profit to £423 million.