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Payouts for mis-selling hit profits at Barclays

Barclays saw half-year profits knocked by a third following a major US settlement and mis-selling provisions, but cheered a turnaround in the final months after dodging further charges.

The high street lender reported a 29% fall in pre-tax profit to £1.7bn for the six months to June 30, while total income for the period was flat at £10.9bn.

Profits were knocked by a £400m PPI charge and a £1.4bn settlement with US authorities over its sale of mortgage-backed securities in the lead-up to the financial crisis - both of which were logged in the first quarter. When stripped of litigation and conduct costs, half-year pre-tax profits rose 20% to £3.7bn.

The bank cheered its second-quarter performance, during which it logged no major legal costs or further PPI provisions. Chief executive Jes Staley said: "It was the first quarter for some time with no significant litigation or conduct charges, restructuring costs, or other exceptional expenses which hit our Profitability." Second quarter statutory pre-tax profits were £1.9bn.

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