Barclays (BCS) is suspending its planned share buyback program following a costly trading
error in the U.S.
The British bank announced last month that it had sold $15.2 billion U.S. more in American
investment products known as “structured notes” than it was allowed to under the law.
As a result, Barclays said it is postponing its share buyback program indefinitely and set aside a
provision of $675 million U.S. because of the issue, which is currently being investigated by
American regulators.
News of the stock buyback suspension comes as Barclays reported a first-quarter net profit of
$1.76 billion U.S., above analyst expectations of $800 million U.S., according to Refinitiv data.
However, the profit is 18% lower than the first quarter of 2021.
Group income in Q1 rose 10% year over year to $8.11 billion U.S., driven by strong corporate
and investment banking earnings during a spike in market volatility.
So far in 2022, shares of Barclays have fallen 22% to $7.28 U.S. per share.
Related Stories
