When charges and litigation costs are taken out, pre-tax profit in Q3 actually rose by 23 per cent year-on-year, the bank said.
logged a pre-tax profit of £3.120 billion ($4.03 billion) in the
third quarter of this year, down from £3.448 billion a year
earlier, although when certain charges were stripped out, profits
The weaker headline result was affected by litigation and conduct charges of £2.1 billion, compared with £800 million a year earlier, mainly linked to a settlement with US authorities over the sale of residential mortgage-backed securities and a £400 million charge for compensating clients who had been miss-sold payment protection insurance.
When such charges and costs are taken out, pre-tax profit rose by 23 per cent to £5.267 billion, shrugging off a 5 per cent decline in the dollar against sterling over the period.
The bank, while it has a substantial wealth management and private banking arm, does not break out of those figures in its results.
The bank’s common equity Tier 1 ratio – a standard measure of a lender’s financial strength - was 13.2 per cent, versus 13.3 per cent at the end of last year. (The ratio measures a bank's core equity capital compared with its total risk-weighted assets that signifies a bank's financial strength. The higher the ratio, the stronger the bank’s position, and vice versa.)