Barclays Share News (BARC)

LONDON (Alliance News) - Barclays Wednesday reported a 27% drop in first-quarter pretax profit as the bank increased its provisions relating to authorities' investigations into currency rigging by hundreds of millions of pounds.

The increase in the size of Barclays' provision for foreign exchange provision is a stark reminder of the challenge facing Chief Executive Antony Jenkins, who promised to clean up the bank's reputation on taking the helm in 2012 after Bob Diamond's resignation following a GBP290 million fine for attempted manipulation of the London interbank offered rate.

Pretax profit fell to GBP1.34 billion in the three months ended March 31 from GBP1.81 billion in the corresponding quarter of the prior year, while net profit fell to GBP465 million from GBP965 million. Net operating income fell by 3% to GBP6.08 billion as lower income net of insurance claims more than offset a fall in credit impairment charges and other provisions.

"Resolving legacy conduct issues is also an important part of our plan to transform Barclays. We are working hard to expedite their settlement and have taken further provisions of GBP800 million this quarter, primarily relating to foreign exchange," Jenkins said in a statement.

Barclays also booked a GBP150 million provision to cover the costs of compensating customers who were mis-sold payment protection insurance, adding to the GBP5.22 billion of provisions it had recognised at the end of 2014.

First-quarter pretax profit for Barclays' core division, which Jenkins set up in 2014 to house assets the bank wants to keep, increased to GBP2.10 billion from GBP1.85 billion, bolstered by the four divisions it contains.

The standout increase in core pretax profit was in Barclays investment bank, where pretax profit increased by 38% to GBP675 million, as banking and markets revenue increased due to higher fees, equities and macro income more than offset falls in lending and credit. Operating expenses within the division fell.

Fashion retailer Next is one of the best-performing stocks in the FTSE 100 after it reported 4.1% sales growth in the first quarter of its financial year, with sales of more-profitable full-price items up 3.2%, running ahead of its guidance for full price sales growth of between flat and up 3% for the whole of the first half.

The full price growth was driven by an earlier launch of its summer "New-In" brochure, which "helpfully" coincided with much warmer weather, while 1.9% growth came from new space. The remaining growth in total sales was driven by a longer winter sale as well as a larger mid-season sale in its Directory business.

Next, which has a recent history of issuing guidance at the start of each year that it then goes on to beat and raise, said it will pay a further special dividend of 60 pence per share as its share price has remained above its limit for conducting a buyback.

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Markets: London's stock indices are trading lower, as investors focus on a host of UK corporate earnings ahead of the first quarter GDP reading from the US and the Federal Reserve's interest rate decision after the UK market close.

US stock futures point to a lower open on Wall Street. The DJIA and S&P are currently set to open down 0.2% and the Nasdaq 100 down 0.3%.

FTSE 100: down 0.3% at 7,011.62
FTSE 250: down 0.4% at 17,595.76
AIM ALL-SHARE: flat at 753.67
GBP: up at USD1.5354
EUR: up at USD1.0996
GOLD: down at USD1,207.62 an ounce
OIL (Brent): flat at USD64.55 a barrel
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Other Top Corporate News
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British American Tobacco said revenue fell 5.8% in the first quarter of 2015 as exchange rates went against it, but it took market share, grew volumes of it key growth brands, and said revenue would have risen 1.7% if exchange rates had remained constant as price increases offset overall volume declines. It kept its guidance for "another good year of earnings growth" at constant exchange rates in 2015, and said it still expects its profit to be weighted to the second half of the year because the first half is up against strong comparative figures from 2014.
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London Stock Exchange Group reported higher first-quarter revenue, driven by its information services business and the acquisition of the Frank Russell Company. The group said revenue increased to GBP581.0 million in the three months ended March 31, compared with GBP311.8 million in the corresponding period of the prior year. Total income increased to GBP602.5 million from GBP336.5 million. The revenue figure included a GBP246.5 million contribution from Russell Investment Management, the part of the Frank Russell business that the group is trying to sell. Excluding Russell Investment Management, total income rose 6%, the LSE said.
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Standard Life said assets under administration increased by 5% in the first quarter of the year, citing net inflows and positive market movements. The life and investments company said assets under administration increased to GBP311.9 billion from GBP296.6 billion during the three months ended March 31. Net inflows amounted to GBP2.9 billion as gross flows more than offset redemptions, while market movements added another GBP12.4 billion to assets under administration.
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J Sainsbury said it is taking all necessary steps to appeal against "groundless claims" that Chief Executive Mike Coupe allegedly illegally seized cheques in Egypt that were paid to the retailer when it sold out of its Egyptian joint venture. Sainsbury said the case is an historic commercial dispute in which Coupe had no involvement and it strongly refutes all the allegations.
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Antofagasta said production for the full year will be less than its guidance after production fell and costs increased in the first quarter of 2015 due to the ongoing disruptions at the Los Pelambres mine in Chile and heavy rain affecting its other operations.
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The Weir Group said its order input in the first quarter was dragged lower by weak demand in oil and gas markets, which it expects to continue in the second quarter and which will result in further cost cuts being made, but its shares rose as the company quelled concerns that the issues had spread to its minerals business.
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NMC Health said it has made two further acquisitions in the United Arab Emirates with the purchase of in-home healthcare services company Americare Group and medical centre operator Dr Sunny Healthcare Group. NMC has paid USD100 million for the two companies, with Americare set to expand NMC's service offering in the UAE and Dr Sunny positioning the group to benefit from the likely introduction of mandatory healthcare provision in the UAE in the near future. NMC said the consideration will be funded via existing cash and debt resources and it expects the deal to complete in the third quarter.
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Countrywide said its revenue in the first quarter was slightly lower as tough market conditions hit its house sales business and a better performance in its lettings arm offset the weakness. The FTSE 250-listed estate agency and property services company said its total revenue in the first quarter to the end of March was GBP154.2 million, down 2% year-on-year as deteriorating conditions in the housing market in the UK hit its estate agency and London & Premier home sales divisions. Revenue in its estate agency business dropped 13% year-on-year, while London & Premier revenue fell 14%. That was mostly offset by growth in its residential lettings business, where its properties under management grew, while it also saw good performances in its financial services arm and in its valuation and surveying business.
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Stagecoach Group said its recent trading has been in line with hopes and it is retaining its earnings guidance for the year that ends on Thursday after like-for-like revenue grew in all its businesses, particularly in its London bus and UK rail operations. The transport operator said like-for-like revenue was up 8.1% in its London bus operations in the 48 weeks to March 29, and was up 9.0% in its UK rail operation. UK regional bus revenue was up 2.4%, while its North American operations reported growth of 1.0%. Revenue in its Virgin Rail Group joint venture in the UK was up 7.6%.
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N Brown Group reported a decline in profit in its recently-ended financial year, as it struggles to compete with other high-street and online retailers. The online, catalogue and stores retailer had issued a profit warning back in March after it further reduced prices in the fiscal fourth quarter to clear stock and compete in the fashion sector, saying it expected pretax profit to fall below the market expectations at that time of GBP88 million. On Wednesday, it reported a 21% fall in pretax profit for the year ended February 28 to GBP76.3 million from GBP96.8 million the year before. Revenue fell only slightly though, to GBP818.0 million from GBP818.9 million.
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Petropavlovsk said its pretax loss narrowed in 2014 as it slashed costs across the board, offsetting a revenue decline due to lower production, and the company said it expects to increase production and reduce costs further in a heavily second-half weighted 2015. The Russia-focused miner reported a pretax loss of USD347.7 million in 2014, less than half the USD713.2 million loss it reported in 2013, even though revenue fell to USD864.9 million from USD1.19 billion. Its operating expenses fell to USD816.2 million from USD1.66 billion, improving the company's operating profit which stood at USD51.7 million in 2014 compared with a USD467.7 million loss in 2013.
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Greggs announced a GBP20 million special dividend but cancelled a GBP10 million share buyback after it completed a review of its capital structure, and said it now expects its results in the first half of its financial year to be ahead of its previous expectations after a strong first quarter. The bakery and food-to-go chain has been reviewing its "appropriate" capital structure for the medium-term, and said it has decided that it will prioritise investment in the business and maintaining a net cash position. However, it also intends to maintain a progressive dividend policy, targeting an ordinary dividend that's covered by earnings two times, while it will return any "material surplus" capital to shareholder, likely through a special dividend.
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Aer Lingus Group said it is still strongly backing the takeover offer made by International Consolidated Airlines Group, as the Irish flag carrier said its operating loss stayed flat in the first quarter of 2015 as higher operating costs offset strong revenue growth. The Irish airline reported an operating loss of EUR48.4 million in the three months to end-March, compared with EUR48.5 million a year earlier, as a 6.7% increase in operating costs to EUR328.4 million offset 7.9% growth in revenue to EUR280.0 million.
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AIM Movers
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The Real Good Food Company shares are up after it said it will sell its Napier Brown Sugar business for GBP34 million plus working capital to French ingredients company Teros Group. Mosman Oil and Gas is up after it said an independent report has confirmed that the Murchison permit in the South Island of New Zealand is an "immediate priority" for the company. Mosman said the report from SRK Consulting (Australasia) has shown mean recoverable gas of 1.695 trillion cubic feet of gas and 164 million barrels of recoverable oil. Atlantis Resources is another gainer after it said it will buy Bristol-based tidal business Marine Current Turbines in an all-share deal that will result in seller Siemens AG taking a 9.99% stake in Atlantis. Atlantis said the deal will lead the company having "one of the largest portfolios of tidal current power projects in the UK". New World Oil and Gas has lost more than a quarter of its value after it conducted a discounted share placing to raise GBP1.5 million to progress its projects in Belize and Denmark and other opportunities. It issued 2.72 billion new shares at 0.055p per share with existing and new investors to raise the GBP1.5 million, which will be used to develop its assets and pursue new opportunities. Following the placing, New World will have 3.43 billion shares in issue, almost five times its existing total. Benchmark Holding has also lost more than a quarter of its value after it issued a profit warning for the first half of its financial year, due to a weak performance for its Salmosan sea lice treatment, which has been hit by competition. Hardide shares are down after it said it expects the second half of its financial year to be hit by reduced spending in the oil and gas industry. Feedback is another faller after it warned that its loss in the current financial year will be wider than current market expectations, even though its revenue will meet hopes, due to contractual settlement costs, higher sales of less-profitable products, and the timing of revenue recognition for its new TexRAD texture analysis software product.
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Top Economics And General
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The two main UK parties continued to chop and change at the top of voter polls ahead of next week's General Election, as Labour returned to the lead in the daily YouGov poll and the Conservatives did the same in the latest TNS poll. Labour pushed back into the lead in the YouGov/The Sun poll, gaining a point to 35% as the Tories lost a point to fall to 34%. But a new poll from TNS UK showed tides moving in the opposite direction, with the Tories gaining two points to move to 34%, overtaking Labour which lost a single point to sit at 33%.
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The UK election campaign brought tax issues to the fore, as David Cameron outlined plans to ban income tax, VAT or national insurance rises in the next parliament and Ed Miliband pledged to raise tax credits every year under a Labour government. Tory leader David Cameron will use a speech on Wednesday to pledge a law banning any rise in income tax, VAT or national insurance in the next parliament, part of a push by the Prime Minister to inject momentum into his party's campaign by positioning the Conservatives as the party of low taxes.
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UK retail sales are forecast to pick up next month after recording a slowdown in April, results of the Distributive Trades Survey from the Confederation of British Industry showed. The retail sales balance fell to +12% from +18% in March. Economists had forecast it to rise to 25%. However, retailers expect sales growth to improve next month, to a balance of +40%.
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UK house prices increased at the fastest pace since June 2014, the Nationwide Building Society reported. House prices were up 1% in April from the prior month, the strongest growth since June 2014. Economists had forecast house price growth to rise marginally to 0.2% from 0.1% in March. On a yearly basis, house prices advanced 5.2% in April, faster than March's 5.1% increase.
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Saudi Arabia's King Salman bin Abdulaziz replaced his younger-half brother with his nephew as the next in line to the throne of the Gulf monarchy, in a middle-of-the-night reshuffle of the government. Deputy Crown Prince Mohammed bin Nayef, 55, replaces Crown Prince Muqrin, marking a generational shift as he becomes the first grandson of the founder of Saudi Arabia, Abdul Aziz ibn Saud, to move so close to the throne. The king's son, Prince Mohammed bin Salman, was made the new deputy crown prince, according to an announcement made on Saudi television and carried by the state-run news agency early Wednesday.
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The official death toll from the earthquake in Nepal reached 4,731, with 1,448 of the fatalities recorded in the capital Kathmandu. More movement was visible on the streets as people who had spent days in terror since Saturday's 7.8-magnitude earthquake struck ventured out, to buy essentials or to go to work despite the fear provoked by numerous aftershocks.
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US President Barack Obama and Japanese Prime Minister Shinzo Abe promoted an Asia Pacific trade deal under negotiation as good for both their economies, while insisting the move was not aimed at containing the rise of China. In talks in the Oval Office, Obama and Abe discussed progress toward the Trans Pacific Partnership trade deal among the US, Japan and 10 other Asia Pacific nations. Obama said he was confident agreement could be reached.
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Tensions eased in the US city of Baltimore Tuesday after peace-keeping civilians kept rock-throwing protestors at bay from lines of police in riot gear. The presence of 2,000 National Guard troops and 1,000 additional police from the region helped maintain order as Baltimore recovered from its shock after widespread rioting took police by surprise on Monday.
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The Nigerian military said it has freed 200 girls and 93 women from the hands of the Islamist terrorist group Boko Haram. But the more than 200 girl students kidnapped from their school in the town of Chibok more than a year ago were not among those freed, according to army spokesman Colonel Sani Usman as quoted by the Nigerian newspaper This Day.
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Afternoon Watchlist (all times in BST)

13:00 Germany Consumer Price Index
13:30 US Gross Domestic Product
13:30 US Core Personal Consumption Expenditures
15:00 US Pending Home Sales
15:30 US EIA Crude Oil Stocks change
19:00 US Fed Interest Rate Decision
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Thursday's UK Corporate Events

IAG - Q1 Results
James Fisher & Sons - Interim Management Statement
STV Group - Interim Management Statement
Howden Joinery - Interim Management Statement
Globo - Full Year Results
International Personal Finance - Q1 Interim Management Statement
Synthomer - Interim Management Statement
Shire - Q1 Results at 1200 BST
Saga - Full Year Results
Harvey Nash Group - Full Year Results
Schroders - Q1 Interim Management Statement
Royal Dutch Shell - Q1 Results
Goldenport Holdings - Full Year Results
Moneysupermarket.com - Trading Statement
Asia Resource Minerals - Q1 Results
Kaz Minerals - Q1 Interim Management Statement
Superglass Holdings - Half Year Results
Tullow Oil - Interim Management Statement
Go-Ahead - Interim Management Statement
Lancashire Holdings - Q1 Results
Royal Bank of Scotland - Q1 Results
Smith & Nephew - Q1 Results
Berendsen - Trading Statement
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Thursday's Key Economic Events (all times in BST)

00:05 UK Gfk Consumer Confidence
00:50 Japan Industrial Production
n/a Japan BoJ Interest Rate Decision
04:00 Japan BoJ Monetary Policy Statement
06:00 Japan Construction Orders/Housing Starts
07:00 Japan BoJ outlook report
n/a Germany Retail Sales
07:45 France Consumer Spending
07:45 France Producer Prices
08:55 Germany Unemployment Rate
09:00 Italy Unemployment
10:00 EU Consumer Price Index
10:00 Italy Consumer Price Index
10:00 EU Unemployment Rate
11:00 Italy Producer Price Index
13:30 US Fed's Tarullo speech
13:30 US Jobless Claims
13:30 US Personal Income
14:45 US Chicago Purchasing Managers' Index
15:30 US EIA Natural Gas Storage change
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