Barclays PLC (LSE:LON:BARC) raised its cost projections for 2022 after facing £1.3bn of litigation and conduct charges in the second quarter.
In its first half results today, Barclays said it expects to incur total operating expenses of £16.7bn in 2022, up from its previous guidance of £15bn.
It is targeting a return on tangible equity greater than 10% for the year after generating a return of 10.1% in the first half of the year.
Barclays posted a statutory pre-tax profit of £3.7bn for the first half of the year, 32% less than the £4.9bn it posted for the equivalent part of 2021.
Group income rose 10% year on year to £13.2bn in the first half. The bank said it had “strong income momentum” across all of its operating businesses.
Barclays UK benefited from higher interest rates and transaction-based revenues. Its consumer, cards and payments segment had an increase in payments transactions.
Barclays’ corporate and investment bank had client wallet market share gains.
However, costs during the period also surged to £9.1bn, up from £7.3bn in the first half of 2021.