Post date: Jul 30, 2013 4:12:57 PM
Reuters Business Report - They've not had the best reputation in banking and it seems Barclays recovery isn't proving easy.
Second quarter profit was below expectations and the bank has revealed it needs to pump its shareholders for £5.8 billion.
UK regulators say the bank needs another £12.8 billion of capital -- more than previously estimated -- and it must find it within a year.Anthony Jenkins is Barclays' CEO.
Barclays CEO, Anthony Jenkins,
"What we have announced is a bold and decisive plan to fill that gap through a series of measures -- firstly the equity raising, then contingent capital, retained earnings and of course balance sheet reduction. It is the right plan for the right time."
The 320-year-old bank has had numerous challenges in recent years, not least the Libor rate rigging scandal.
Accenture's Julian Skan says it's too early to say if it's new strategy is the right one.
Accenture Managing Director for Banking in Europe, Africa and Latin America, Julian Skan,
"You can't set a strategy out for dealing with this and therefore say whether you are on track or not. It's really how well you react in the moment and how well you rebalance your balance sheet. I'd sayBarclays is doing a pretty good job with the stuff that's being fired at them."
Barclays pretax profit for the first six months of the year was double last year's, at £1.7 billion.
But it's had to set aside another £2 billion to compensate customers for mis-selling financial products, including payment protection insurance.
That brings the total allocated by British banks for mis-selling to £15 billion pounds
Natalie Ceeney is the UK's banking ombudsmen.
Chief Banking Ombudsman, Natalie Ceeney,
"No-one is handling the clean up, as far as I am concerned, brilliantly, but I am starting to hear the right language about putting things right."
Barclays shares fell almost 7% after their results -- they were the weakest performer in the banking index.
There are now fears the British government's plans to sell its shares in Lloyds Banking Group later this year could be under threat as Barclays sucks up demand for bank stock.