Company Of The Week
Sunday 27 September 1998
Although Barclays said it does not expect a negative impact on its own profit and loss account as a result, investor confidence was undermined after UBS, Europe's largest bank, said it will report a third-quarter loss as high as $717m. The Swiss bank will write off SFr 950m because of its involvement with the hedge fund.
The UK Financial Service Authority will quiz British banks about their exposure to the $4bn losses incurred by fund. This follows on news earlier this month that Barclays Capital will take a pounds 250m loss on Russian loans and securities.
Also last week, Barclaycard, the bank's credit card business, said it will cut 1,100 jobs, about a quarter of its staff, and increase spending on technology by pounds 30m to retain its UK market leadership. While Barclaycard still dominates the British credit card business, other banks and international credit card providers such as MBNA and RBS Advanta are making inroads into the business by offering cheaper rates and consumers are becoming more sensitive to the high rates of interest on credit card borrowing.
"Barclaycard is clearly under a lot of pressure and they've had to react to defend their leadership position,'" said John Paul Crutchley, banking analyst at Credit Lyonnais Securities.
Barclaycard contributed about 12.5 per cent of Barclays first half profit even though it fell 11 per cent to pounds 253m from a year earlier.
Threat of 'catastrophic cascade of collisions' must be averted, warn scientists
Wellcome Image Awards: The most striking images from the world of science, including breast cancer cells under chemical attack and a photographer’s own kidney stone
Space debris orbiting Earth to be destroyed with giant lasers fired from Australia
Swarm of killer bees sting woman 1,000 times
Oscar Pistorius murder trial: Athlete repeatedly sick as court hears 'graphic details' of Reeva Steenkamp's post-mortem
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Australian man Rod Sommerville reacts to bite from deadly snake by reaching for cold beer
- 2 Pakistan vs Paul Smith: Sandal-wearers bemused by famed British designer's attempts to sell traditional Peshawari chappal-style shoes for the distinctly untraditional sum of £300
- 3 North Korea elections: Kim Jong-un wins 100% of the vote
- 4 Steve Irwin’s final words: Cameraman present at death opens up about deadly stingray attack for the first time
- 5 Sharknado 2: Former WWE wrestler Kurt Angle to fight second wave of flying sharks
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