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Business

Barclays H1 profit falls as shrinking bites

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Opening sequence

Business

Barclays H1 profit falls as shrinking bites

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COMING UP:Barclays H1 profit falls as shrinking bites

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00:00:01
>> Barclays bid to slim down it's operations, hitting profits. The British lender posting half yearly pre-tax profit of 2 billion pounds. That's versus 2.6 billion a year ago. Reuters banking correspondent Lawrence White says the cost of selling and shrinking the bank's unwanted assets has taken its toll.>> The decline is largely driven by a 1.9 billion loss in the business that Barkley's calls non-core, which is basically the house for everything that it doesn't want anymore.
00:00:27
As it sells those assets in a very difficult market environment, it's having to accept low prices, so this is really the shrinking pains if you're having to reduce the banks.>> Barclays booking a 372 million pounds loss with French retail banking business. Other assets out for sale include most of the banks stake in it's Africa unit.
00:00:47
And it's Barclay called consumer payments business in Spain and Portugal. Even so, shares traded higher on Friday, investors still happy with the performance of the group's core businesses.>> Beyond those headline numbers, the actual underlying business of Barclays focused on the UK bank, and a UK to US corporate investment bank, performed reasonably well against a tough market backdrop.
00:01:09
The investment bank saw a 9.5% return on equity, which is actually pretty good by modern standards.>> The CEO also playing down fears over Brexit blues. Jess Daily telling investors he doesn't expect a UK recession and is sticking to full year forecasts, but his optimism will face another test next week if the Bank of England decides to cut interest rates as expected.