Barclays posted net income of £695 million ($765.64 million) for the first half of 2020, while increasing its coronavirus-related provisions.
The British bank added another £1.6 billion to its credit impairment charges during the second quarter, bringing the total level to £3.7 billion at the end of the first half.
CEO Jes Staley told CNBC the total level of these reserves for loan losses was reached based on “very conservative economic assumptions going forward.”
A sign hangs above an entrance to a branch of Barclays Plc bank in the City of London, U.K.
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“Right now how we see the economies functioning is actually slightly better than the assumptions we’ve put in in our models,” Staley told CNBC’s “Squawk Box Europe.”
Other metrics at the end of the first half:
- CET 1 ratio grew to 14.2%, from 13.1% at the end of the first quarter.
- Revenue hit £11.6 billion, vs. £10.7 billion a year ago.
The bank said it will decide on future dividends and its capital returns policy at the end of the fiscal year. The stock is down about 37% since the start of the year.
Despite the uncertainty brought by the pandemic, Barclays U.K. has seen “encouraging” numbers in mortgage applications.
Staley told CNBC that in the last couple of weeks there have been more mortgage applications in the U.K. than at the same time last year.