The slowdown in the UK mortgage market continues to hit revenues at Barclays, with the UK bank reporting a 7% drop in income for the three months to the end of March 2024.
Barclays said that loans and advances to customers at amortised cost decreased by 1%, when compared to the final quarter of 2023, to £200.8bn. It said this decrease was largely driven by subdued mortgage lending amid lower market demand. It adds that continued repayment of government scheme lending across its business banking also contributed to this drop.
The difficulties in the UK mortgage market helped contribute to pre-tax profits across the banking group falling by 12% to almost £2.3bn, compared to the same quarter the previous year. This though was marginally ahead of analysts’ forecasts.
Barclays added that its credit impairment charges were £58m, compared to £113m over the first there quarters of the last financial year. It says this is consistent with its high quality mortgage portfolio and the improved macroeconomic outlook.
In its outlook for the year ahead, the bank said it expected to complete its acquisition of Tesco Bank in the fourth quarter of the year. It has also announced the sale of its Italian mortgage portfolio.
