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10th of August 2011
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Barclays profits fall, cuts jobs

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by Kay Mitchell

Banking giant Barclays is the latest bank to report its half-year profits and announce job losses.

The bank said pre-tax profits came in at £2.6 billion for the six months to the end of June, down one third from the same period a year ago.

However, chief executive Bob Diamond said he was pleased with the bank’s performance, despite describing the economic environment as “lacklustre”.

Meanwhile, the bank said it will axe at least 1,400 more jobs this year, after 1,400 positions have already been lost this year – equating to 2% of its total workforce.

The results and job losses come just a day after HSBC announced plans to shed 25,000 jobs by 2013 after reporting a rise in half-year profits.

The banking industry has unveiled thousands of job losses already with Lloyds Banking Group shedding 15,000 jobs this year, while Royal Bank of Scotland has axed 28,000 employees since 2010.

Returning to Barclays, the bank said the fall in profits was partly attributed to a £1 billion provision for costs relating to mis-selling payment protection insurance (PPI).

The controversial insurance has been a hot topic for some time now and the Financial Services Authority (FSA) introduced a review of the insurance after millions of policies were mis-sold and thousands of complaints were received.

Several other banks have been forced to make provisions to cover compensation costs.

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News posted: August 2, 2011

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