Barclays and ITV post results

The City will this week study the scale of mis-selling provisions lender Barclays will book, while broadcaster ITV is poised to post a double-digit rise in profits.
By The Newsroom
Published 28th Feb 2016, 17:12 BST
Updated 28th Feb 2016, 17:14 BST
Double digit growth?Double digit growth?
Double digit growth?

Barclays is expected to book hefty provisions for mis-selling charges when it announces its full-year results on Tuesday.

The lender looks set to join RBS, Santander and Lloyds by revealing a further hit for payment protection insurance (PPI) mis-selling, with Investec analysts pencilling in a £1.2 billion charge for the fourth quarter.

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Recently appointed boss Jes Staley hinted last month that investment banking income may fall by 10% to £1.5 billion in the fourth quarter, as he expects its full-year income to be “broadly flat” compared with the prior year.

Barclays said in January it would axe around 1,200 investment banking jobs under plans to pull out of Russia and shut offices across a raft of countries in the Asia Pacific region.

These job losses will come on top of 7,000 cuts made since 2014.

It was thought that stock market turmoil and a commodity price rout played a part in the decision to further scale back its investment banking footprint.

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Barclays came under the spotlight at the beginning of February when it said it would pay $70m (£49m) to settle a case brought by US authorities over allegations it “misled” users of its “dark pool” trading system.

The US Securities and Exchange Commission and the New York Attorney General’s Office said the London-based company had admitted wrongdoing and agreed to pay each agency $35m (£24.5m).

A spokesman for the bank, which has extensive operations in the US, said “the agreement will enable us to focus all of our efforts on serving our clients”.

Broadcaster ITV will reveal whether it has secured a second year of “double digit profits growth” when it announces its annual results on Wednesday.

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The group, which is home to Downton Abbey and The X Factor, will also be hoping for a better performance from its under-pressure audience figures after posting falls of 3% to 21.2% in the 10 months to October 31.

CEO Adam Crozier previously forecast a bright financial picture for the full-year, stating “another year of double digit profit growth” could be on the cards.

Related topics:BarclaysITVSantanderLloyds