Barclays are the latest bank to feel the effects of the credit crisis, with Britain’s third largest bank suffering a writedown of £800 million for October alone. Since the start of the third quarter, Barclays have now suffered a £1.3 billion hit, though the bank revealed they have made a pre-tax profit of £1.9 billion in 2007 so far, showing an improvement on last year.
Barclays has been subject to negative reports in the media recently, with the bank allegedly requesting emergency loans from the Bank of England ahead of rumoured hit of £10 billion in the wake of the credit crunch. Though that figure has yet to be given any credence by Barclays’ results, the bank has admitted that Barclays Capital still has over £5 billion worth of exposure to investments in packages of debt, including US sub-prime mortgages .
Although Barclays’ share price has suffered as a result of negative reports, the bank’s optimistic financial predictions in recent weeks have caused an increase of nearly 6 per cent, as the bank look to stabilise their position in a turbulent financial market.
Barclays Bank Suffers October Hits
Barclays Bank Suffers October Hits
Thu, 22 Nov 2007
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