Barclays Swings to Profit as Restructuring Nears End

Industries Dow Jones Newswires

(Reuters)

Barclays swung to a full-year net profit of GBP1.6 billion ($1.99 billion), as the bank's management said it was just months away from finishing a restructuring of the U.K. lender. 

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The British bank on Thursday said total income was down 3% over the year to GBP21.5 billion, as the bank continued to exit businesses. However, the bottom line was helped by a surge in revenue at Barclays's investment bank. 

Corporate and Investment Bank income increased 6% to GBP10.5 billion, helped in particular by bond-trading revenue and favorable exchange rates. Last year the bank made a net loss of GBP394 million. 

Management have said 2017 should be the year that Barclays normalizes after years of constant overhauls. "We are now just months away from completing the restructuring of Barclays," Chief Executive Jes Staley said in a statement 

On the American banker's watch Barclays has pared back its presence in Africa and Asia, and is now more focused on its U.K. and U.S. operations. 

In the latest sign of progress, the bank said it expects to close its "noncore" unit in June this year, six months earlier than expected, after selling down businesses from France to Egypt. The bank said it was "on track" to deconsolidate the business from its accounts. 

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Barclays also said it has agreed a GBP765 million separation agreement with its African business, which must now be approved by regulators. 

Write to Max Colchester at max.colchester@wsj.com