Barclays and Its warning
Barclays, an investment bank and financial services firm headquartered in London, is organized into four core businesses, including – corporate banking, personal banking, wealth management, and investment management.
Barclays has warned that the coronavirus pandemic may cost approximately £2.1 billion because the customers are not able to repay the loans. The company said that it was setting the money separately to cover the initial estimation of the impact of the coronavirus. The impairment charge indicated that the profits for the initial three months of this year dropped 38% to £913 million.
On Tuesday, its rival lender named HSBC highlighted a 50% fall in profits related to the outbreak. HSBC has predicted that the bad loans would increase to $3 billion as the customers were not able to repay the loan during the pandemic.
A great economic downturn
On Wednesday, Barclays said of the impact of the COVID-19 crisis. The chief executive, Jes Staley, said that they had taken a £2.1 billion credit impairment charge that reflected their initial estimates of the impact of the coronavirus pandemic. He also said that the uncertainty around the developing economic decline and lower interest rate ambient in this year was expected to be a dispute.
Banks have been giving offer to the UK businesses government loans to assist them to survive during this lockdown. But some have given objection that it may take very long to access the money. Jes Staley also said that they were doing everything that they could do to be responsive. The bank had accepted 238,000 customers’ loan agreements and loan payments.
Approximately 70,000 Barclays staff are currently working from home because of the lockdown order. The bank didn’t mention when the offices and the branches would open again but indicated that the Hong Kong branch would open first.
