Barclays says it is ‘very unlikely’ to meet profit goal amid virus outbreak
FILE PHOTO: The logo of Barclays is seen on the top of one of its branch in Madrid, Spain, March 22, 2016. REUTERS/Sergio Perez
LONDON (Reuters) – Barclays (BARC.L) is ‘very very unlikely’ to meet its goal of a 10% return on equity this year given the impact on its business of the coronavirus pandemic, its Chief Financial Officer Tushar Morzaria said on Tuesday.
Profits will be hit by a buildup of bad loan provisions as corporate borrowers suffer in the economic slowdown accompanying the virus’s spread, Morzaria told a financial conference in London.
Barclays earlier this year said that its goal of a 10% return on tangible equity, a key measure of profitability, would be difficult but achievable.
Reporting By Lawrence White, Editing by Sinead Cruise