As Barclays reported its quarterly results this morning, the bank stated that it is incurring a charge totaling £800 million ($1.23 billion) related to litigation costs. The primary reason for the move are once again settlements related to foreign Exchange fixings manipulation.
The charge brings the total costs for Barclays close to £2 billion ($3.07 billion). The firm has already been fined by global regulators setting aside £750 million ($1.15 billion) in the fourth quarter of last year.
Commenting on the matter, the CEO of Barclays Anthony Jenkins, said, “Resolving legacy conduct issues is an important part of our plan to transform Barclays. We are working hard to expedite their Settlement and have taken further provisions of £800m this quarter, primarily relating to Foreign Exchange.”
Back in November the bank has not reached a foreign exchange fixings manipulation settlement with U.S. and U.K. authorities. The lack of consensus with the New York Department of Financial Services, which is the banking regulator in the region has postponed the final litigation costs for Barclays.
At the time, the company shared that it was aiming to settle all allegations with global regulators at the same time.
The company has also highlighted that its derivatives assets have increased in value by £40 billion ($61 billion) to a total of £480 billion ($736 billion). Derivative liabilities have also increased, topping out at £484 billion ($743 billion), which is higher by £44 billion ($67.5 billion).
Barclays reported statutory profit before tax amounting to £1.33 billion ($2.04 billion), which includes the provision. The figure is lower by 26 percent when compared to the first quarter of 2014.
