Barclays reports £1.9bn loss amid Trump tax change and legal costs

Barclays pulled into the red by PPI claims and Trump tax reforms

Barclays reinstates dividend despite £1.9bn loss

Major hits included a further £700m provision for PPI claims, £2.5bn of losses related to selling Barclays Africa, and a £900m one-off hit from President Trump's tax reforms.

The group's pre-tax profit, however, rose by 10 percent to £3.54 billion in 2017, and customer deposits increased 2 percent to £193.4 billion.

The lender said the loss resulted from £1.2 billion in litigation costs, a loss of £2.5 billion related to the sale of Barclays Africa Group Limited and a one-off United States tax charge of £900 million.

Barclays has been sharpening divisions in bonuses this year, boosting pay for top performers while cutting it for those in the bottom half, people familiar with the decision said last November.

Barclays' attributable loss compares with a £1.6 billion profit over the course of 2016.

Jes Staley, chief executive (left), said: "We have a portfolio of profitable businesses, producing significant earnings, and have plans and investments in place to grow those earnings over time".

The results come after Mr Staley recently completed a group-wide restructure, having overseen a mammoth programme to offload non-core businesses in a bid to focus on core United Kingdom and USA operations.

"We have already started to see some of the benefits of our work in 2017". His overall pay package however was down from £4.22m after his annual bonus dropped to £1.07m from £1.3m.

The lender earlier posted a pretax profit, excluding litigation costs, of 334 million pounds, missing the average 570-million-pound average estimate of 14 analysts compiled by the bank.

The U.K. Financial Conduct Authority opened an investigation in 2017 looking at Staley's alleged attempt to find out the name of the employee that wrote a letter raising concerns about the recruitment of a senior official by the bank.

The bank's annual report also showed that 369 employees earned more than £1 million previous year, while 11 took home pay deals worth more than £5 million.

Staff shared out a £1.51 billion total bonus pool for 2017, down from £1.53 billion in 2016.

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