Barclays has delayed a £1 billion share buyback program as the British bank prepares to pay customers £450 million for losses in its US structured products business.
The volume of structured securities that Barclays issued in 2019 has exceeded interest rates, meaning the bank is expected to pay customers £450 million to withdraw trades based on market prices. for now, the British lender said on Monday.
Barclays added that the loss would cause its tier 1 common equity ratio to suffer 0.14 percentage points – a measure of its resilience to financial distress – which would remain within its target range. 13-14%.
“The £1 billion share buyback program announced on February 23, 2022 as part of the full year 2021 results expected to begin in [the second quarter]The bank said.
“Barclays has authorized an independent review of the facts and circumstances relating to this matter, including, among other things, the control environment associated with such issues. Separately, regulators are conducting investigations and requesting information. ”
Joseph Dickerson, an analyst at Jefferies, said the loss was “a non-productive issue that triggered an independent review around the control environment”, adding that “legal requirements reason can affect emotions”.
Barclays said it registered $20.8 billion in its total maximum-price securities offering in August 2019, exceeding the registered amount by about $15.2 billion.
Shares in the financial services group fell more than 2% in early London trading on Monday, bringing their drop for the year to 12%.
