Barclays shares plunge

Barclays shares plunge

Shares in Barclays have sunk this morning after the British bank reported a fall in annual profits and warned of lower dividends over the next couple years. The FTSE-100 listed company said pre-tax profits for 2015 were 8% lower than the year before at £2.1bn, with a significant contributor being the $1.45bn hit taken over the payment protection insurance (PPI) mis-selling scandal in the last quarter and a total of £2.2bn for 2015.

A major blow to investors, and possibly the single piece of news that sent the shares dropping at such a rate that they were suspended at one point, was the announcement that Barclays intended to pay a dividend of 3p for this year and next, down from the 6.5p payout for 2015, as it seeks to beef up its capital strength. This is in stark contrast to competitor Lloyds, who’s shares rallied following announcing a larger than expected dividend
Shares are currently down by just over 8%, on course for their worst day since 2012.

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