Barclays Chief Executive Antony Jenkins has told ITV News the group's finances are "100 per cent safe" after the bank announced a new £5.8 billion capital plan to meet City regulator demands.
Barclays' share price fell by 5% today as the bank announced plans to raise £5.8 billion in rights issue to boost capital.
The Bank of England has welcomed Barclays' new capital plan to meet City regulator demands to shore up its finances.
– Bank of England spokesperson
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.
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.
– Sir David Walker, Barclays Chairman
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.
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.
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.