LONDON (Alliance News) - Barclays PLC Wednesday said it will set aside an additional GBP330 million provision in the fourth quarter to cover the costs of litigation and financial penalties, as it also denied press reports that it was about to embark on major branch closures in the UK.
It said its cost target for 2015 remains at GBP16.8 billion, excluding costs to achieve its turnaround plan which aims to increase its return on equity above its cost of equity, and to change its culture, among other measures and financial commitments.
The BBC and Financial Times both reported earlier Wednesday that Barclays was set to close a significant number of branches in coming months, but in a separate statement, the bank denied the scale of the closures in the reports.
"We have consistently been clear that, over time, there will be fewer traditional branches as we move to provide banking services to customers where and when they find it most convenient," a Barclays spokesperson said in a statement.
"There is not a target for a number of branches to be closed, nor a timeframe for such action," the spokesperson added.
Barclays will announce its full year results on February 11.
It reiterated that it will comment at that time on how it plans to further improve its leverage position. The bank is working to improve its leverage ratio to meet regulator demands that it has a 3.0% ratio by June, building on its GBP5.8 billion rights issue and a number of other measures taken last year.
Last July, it had said it would meet the requirement through the rights issue, a reduction in its weighted balance sheet, the issue of more tier 1 securities, and retention of earnings and other capital.
Barclays shares were trading at 271.45 pence, down 1.85 pence, or 0.7% at 1352 GMT. The stock had been higher earlier on the back of the media reports about significant branch closures.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Barclays (BARC)