Barclays hit by tough market conditions
April 24, 2008
Barclays have admitted that even thought they were profitable in March the markets were “tough”.
Chief Executive John Varley said “We were were profitable in March as well but trading conditions were tougher, meaning that Group profits for the first quarter was below that of the very strong prior year period.”
Mr Varley made the comments ahead of the banks annual meeting.
This week Royal Bank of Scotland asked its shareholders for a £12bn in a record largest rights issue in UK corporate history. Due to Mr Varleys comments it is speculated that Barclays could be forced to launch a rights issue, which is a sale of new shares, to raise capital.
However Barclays have said that “we will remain active managers of both our balance sheet and our capital ratios”.
Mr Varley added “The bank would aim to generate annual profit of between £9.3bn and £10.6bn over the coming four year period”.
For more information on Barclays finance visit www.barclays.co.uk.
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