Barclays PLC yesterday reported that earnings fell in the first quarter, hit by losses in non-core units that it is seeking to offload, and revealed it is in talks to sell its French retail operations.
Net income declined 7 percent to ￡433 million (US$630 million) in the first three months of the year, the British bank said in a results statement. That compared with net profit of ￡465 million in the same period last year.
Pre-tax profits sank 25 percent to ￡793 million, hit by a jump in credit impairment charges.
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That undershot market expectations of ￡846 million, according to an average of analysts’ forecasts provided by the group.
The troubled bank added that it has entered “exclusive discussions” with AnaCap Financial Partners over the possible sale of its French retail banking activities, in a move that would mark its exit from continental European retail banking.
The talks are part of Barclays’ ongoing efforts to shed non-core assets, as it attempts to recover from several scandals.
The French operations include its network of 74 branches, life insurance business, and wealth and investment management operations.
The division employs about 1,000 people in France, a company spokeswoman said.
Barclays added that it would continue to operate its corporate and investment banking activities in France.
“Accelerating the disposal of our non-core unit is the key to creating a simpler, more focused Barclays, and to eliminating the drag on the performance of our strong core business,” Barclays chief executive officer Jes Staley said.
“Today’s announcement, together with the sale of our Asia Wealth operations announced earlier this month, represent significant steps forward, and are tangible evidence of the progress we continue to make,” he said.
“This transaction, once completed, would effectively finish our exit from continental European branch-based retail banking,” he said, adding that the French unit “no longer fits” with the group’s strategic ambitions.
Last month, Barclays revealed a shake-up of the beleaguered bank with plans to exit its African operations, having already announced its departure from Russia in January.
The troubled bank is still seeking to restore its battered reputation under the leadership of Staley.
The lender last month decided to split the bank into two units, focusing on its operations in Britain and the US.
Staley, a veteran US banker who began his latest role in December last year, has been tasked with restoring the bank’s battered reputation caused by a series of scandals, including the rigging of foreign exchange and LIBOR markets.
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