Barclays: Revenue Declines in Cards and the UK Business Add To Pressure On Earnings in Q2 2020
Barclays PLC's (Barclays or the Group) statutory profit before tax (PBT) in Q2 2020 was GBP 359 million, down by 77% year-on-year (YoY) and 61% quarter-on-quarter (QoQ). As expected, Q2 2020 earnings remained affected by the high cost of risk, driven by the economic impact of the COVID-19 pandemic, in part offset by solid performance in the Corporate and Investment Bank. We note that compared to Q1 2020 revenue generation has deteriorated in Consumer, Cards and Payments (CC&P) and Barclays UK, reflecting reduced balances and payment activity in cards, margin compression, and the impact of COVID-19 support measures.
Barclays is a holding company. Through its subsidiaries, Co. is a financial services provider engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management and investment management services. Co.'s business segments are: Barclays U.K, which provides everyday products and services to retail customers and small to medium sized enterprises; Barclays International, which delivers products and services designed for Co.'s corporate, wholesale and international banking clients; and Head Office, which comprises head office and central support functions (including treasury) and businesses in transition.
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