(Adds analyst comment, share price reaction)
LONDON, July 13 (Reuters) - Barclays told investors
on Monday that recent regulatory changes had boosted its core
capital, giving the British bank a bigger buffer to absorb any
further loan losses during the coronavirus crisis.
The bank said it expected to report a CET1 capital ratio of
14% in half-year results later this month, up from 13.1% at the
end of March and ahead of market expectations.
Barclays also said it expected risk-weighted assets to be
lower than previously anticipated.
The bank said its half-year results would reflect
challenging income and impairments in its consumer and corporate
business, but strength in its markets income.
Barclays shares were up nearly 2% at 1135 GMT following the
announcement, making them the biggest gainers among FTSE 100
banks on the day.
John Cronin, banking analyst at Goodbody, said it was likely
other banks could see a similar boost to capital from the recent
rules changes, including a softening of capital accounting rules
rolled out in June.
"The fresh guidance is also suggestive of
lower-than-consensus impairments, which is not surprising given
improved market expectations in a GDP and unemployment trough
context," Cronin added.
"However, many customers are still on payment breaks and it
is very early days in a loan losses context."
(Reporting by Iain Withers; Editing by Tom Arnold and Jane
Merriman)