Barclays sets aside $1.2 billion to cover cost of foreign exchange scandal

MarketsAssociated Press

Barclays set aside an additional 800 million pounds ($1.2 billion) to cover the cost of allegations that it manipulated foreign exchange markets as Britain's second-biggest bank seeks to put the scandals of the past behind it.

Barclays says the provisions helped push first-quarter net income down 52 percent to 465 million pounds.

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But the bank says it is making progress in its effort to rebuild the business, with adjusted pretax earnings from core operations rising 14 percent to 2.1 billion pounds. This figure excludes one-time items and results from businesses that Barclays plans to exit.

CEO Antony Jenkins says the performance is evidence that the bank's strategy is working.

Jenkins says: 'Resolving legacy conduct issues is also an important part of our plan to transform Barclays."