Barclays has mentioned it has put aside £150m to cowl the influence of “anticipated financial uncertainty within the UK” because it reported a slight fall in annual earnings.
The disclosure within the financial institution’s monetary outcomes comes weeks earlier than a attainable no-deal Brexit and provides to warnings concerning the potential fall-out for the economic system from different lenders.
Barclays mentioned pre-tax earnings for 2018 fell 1% to £three.49bn because it counted the price of previous misconduct together with a £1.4bn settlement with US authorities over the sale of poisonous mortgage belongings within the run-up to the monetary disaster.
Stripping out these litigation and conduct prices, earnings rose by 20% to £5.7bn.
Shares have been four% larger in early buying and selling.
Chief government Jes Staley mentioned: “2018 represented a really important interval for Barclays.
“In the midst of the 12 months, having resolved main legacy points… we began to see the earnings potential of the financial institution.”
The outcomes come because the financial institution faces sustained stress from activist investor Edward Bramson for a shake-up.
Rival lender Royal Financial institution of Scotland mentioned final October that it was taking a £100m cost associated to a “extra unsure financial outlook” within the UK.
The supply made by Barclays displays an anticipated influence of uncertainty on its UK bank card and company loans operations.
Barclays mentioned 2018 earnings for its ring-fenced UK shopper enterprise have been up by 12% to £1.96bn, although for the fourth quarter they have been 14% decrease at £390m for a similar interval a 12 months in the past.
The financial institution mentioned it noticed “continued momentum” in mortgage lending and buyer deposits however noticed revenue margins on its loans squeezed – amid what different lenders have mentioned is a tricky aggressive surroundings.
Income on the lender’s worldwide arm additionally rose, together with a 26% rise in earnings for its company and funding financial institution to £2.59bn.
The financial institution disclosed that Mr Staley was paid £three.4m in 2018, down from £three.9m in 2017 after seeing £500,000 of earlier bonuses clawed again following an investigation into his try and uncover a whistleblower.