Barclays warned of a slowdown in dealmaking and lending because of the uncertainty caused by Donald Trump’s tariffs – despite posting a better-than-expected rise in profits.
The bank was boosted by frenetic trading activity as the US President’s erratic trade policies wreaked havoc on global markets.
This more than offset the impact of delayed dealmaking in Barclays Investment Bank.
That helped it report a 19 per cent increase in profits to £2.7billion for the first quarter. Analysts had expected profits of £2.5billion.
And it even upgraded the profitability outlook of its UK arm amid a resilient performance from its mortgage lending and spending card operations.
But chief executive CS Venkatakrishnan, known in the business as Venkat, signalled there could be more storms ahead.
Threats: Barclays, led by boss CS Venkatakrishnan (pictured) was boosted by frenetic trading activity as US President Donald Trump’s trade policies wreaked havoc on global markets
He said that revenues from its markets trading arm could continue to be boosted by volatility.
He said: ‘It is quite natural when there is this kind of uncertainty to take a pause and consider the important decisions they are making – for their financing needs as well as M&A activity – to get some clarity.
And I expect until clarity comes people will continue to consider their environment and be cautious.’
Barclays set aside more money to cover the risk of loans turning sour amid the trade war.
The provisions went up to £643million from £513million a year ago, largely driven by £74million attributed to ‘elevated US macroeconomic uncertainty’.
A day previously, rival HSBC said that President Trump’s tariffs were driving a ‘reconfiguration’ of the global economy.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .