Barclays improved impairments boost returns

A dramatic step-up in litigation and conduct charges at Barclays (BARC) during the first half – resulting from the £1.4bn settlement with the US Department of Justice over sales of mortgage-backed securities – may have depressed pre-tax profits, but much of that damage had been pre-flagged. Strip that out and pre-tax profits rose a fifth to £3.7bn, driven by a consensus-beating reduction in impairment charges, which almost halved to £571m.