Barclays plans £5.8bn cash call

Barclays' shares have fallen 5% after it announced plans to raise £5.8 billion from shareholders. City regulators said the bank needed to raise £3 billion in reserve to cover their risks.

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Bank of England welcomes Barclays' new capital plan

The Bank of England has welcomed Barclays' new capital plan to meet City regulator demands to shore up its finances.

The group is to issue new shares at a discounted price as part of a fundraising boost for the bank.

Following constructive discussions, the PRA has agreed and welcomes Barclays capital plan, announced today.

We have considered all elements of the plan, including new capital issuance, planned dividends and management actions to be taken and, based on Barclays' projections, conclude that it is a credible plan to meet a leverage ratio of 3%, after adjustments, by June 2014 without cutting back on lending to the real economy.

– Bank of England spokesperson

Barclays: Share plan will leave bank in 'stronger position'

Barclays chairman Sir David Walker has said plans to raise £5.8 billion from its shareholders to plug its capital shortfall would leave the bank "in an even stronger capital position".

The Prudential Regulation Authority (PRA) reported last month that Barclays needed to raise £3 billion in reserve to cover their risks.

As a result we expect Barclays to be in an even stronger capital position, allowing us to increase the dividend payout ratio ahead of the original Transform target.

The Board expects that Barclays will continue to reduce leverage further, whilst maintaining target capital levels, and will aim to do so in a way that achieves sustainable returns above the cost of equity.

– Sir David Walker, Barclays Chairman

Read: Barclays announces £3.59bn profits

Barclays announce 17% profit fall in new interim results

Barclays has announced its adjusted pre-tax profits fell by 17% over the first six months of 2013 to £3.59 billion as the bank counted the cost of a group-wide restructure launched in the wake of its Libor rate-rigging settlement last year.

In new interim results, the bank has also set aside £2 billion for customer mis-selling, including £1.35 billion for payment protection insurance.

The group added set prices were at 185p for new ordinary shares.

Read: Barclays plan to raise £5.8bn to plug capital shortfall

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Barclays plan to raise £5.8bn to plug capital shortfall

Barclays bank has announced it plans to raise £5.8 billion by way of a rights issue.
Barclays bank has announced it plans to raise £5.8 billion by way of a rights issue. Credit: Dominic Lipinski/PA Wire/Press Association Images

Barclays has announced plans to raise £5.8 billion from its shareholders to plug its capital shortfall issued by a banking regulator.

The figures follow the Prudential Regulation Authority's report last month that Barclays needed to raise £3 billion in reserve to cover their risks.

The regulator found there to be a £27.1 billion capital shortfall at five of the UK's biggest banks.

The shortfall is in the banking sector's reserve funds that are needed in case of future crises.

Read: Barclays, Lloyds and RBS make up 90% of 'black hole'