Scandal-hit Barclays returns to profits

Australians are saving more, paying off their mortgages and getting debt-free. Picture: Thinkstock Source: Supplied

BRITISH bank Barclays, seeking to recover from last year's damaging Libor rate-rigging scandal, has announed that it bounced back into net profits in the first quarter of 2013.

Earnings after taxation stood at STG839 million ($1.25 billion) in the three months to March 31, Barclays said in a results statement. That contrasted with a net loss of STG598 million in the same part of 2012.

"While there remains much to do to build a stronger and more resilient Barclays, we are completely focused on executing our Transform program and are making good early progress," chief executive Antony Jenkins said.

The bank's profit was skewed by changes in the value of its debt and owing to an absence of the provisions seen a year earlier to compensate clients who were mis-sold insurance.

Adjusted profit before tax fell by a quarter to STG1.79 billion, dented partly by restructuring costs that totalled STG514 million as part of Jenkins' so-called Transform program, the bank said. Bad debt provisions sank 10 per cent to STG706 million in the first quarter.

"We have recognised around STG500 million of costs to achieve Transform in the first quarter, reflecting our immediate priorities to reduce our European retail branch network in order to focus on the mass-affluent segment and on re-positioning our equities and investment banking operations in Asia and Europe," Mr Jenkins said.

He said that Barclays expected to recognise a further STG500 million of costs related to the Transform plan this year.

View the original article here

Sydney Airport returns to profit

SYDNEY Airport has swung back into profitability as retail and car parking revenue grew and airlines added more flights.

The airport made a net profit of $179.2 million in the 12 months to December 31, up from a $239.9 million loss in the prior corresponding period.

The calendar 2011 result was affected by a $361 million charge relating to the sale of company's stake in two European airports. Excluding the charge, net profit was up 47 per cent from the prior year.

Revenue in 2012 rose 1.3 per cent to $1.06 billion, Sydney Airport said today.

Retail revenue rose 5.3 per cent, property and car rental revenue was up 8.3 per cent and ground transport and commercial services revenue was 8.9 per cent higher.

"Successful implementation of the new car parking strategy, completed in September 2012, has expanded the product choice and enhanced the value proposition for customers," Sydney Airport said.

"Additional capacity, advanced technology, tailored products and new online booking systems all contributed to a strong second half and established the basis for ongoing business revenue growth."

International passengers rose 5.6 per cent in calendar 2012, with existing airlines boosting flight frequencies to Sydney and new carriers such as Air Asia X and Scoot starting services to the NSW capital.

Domestic passengers were up 2.7 per cent, as Tiger Airways opened a base at the airport with four aircraft and Jetstar added significant capacity.

Sydney Airport said earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7.4 per cent to $848 million.

Chief executive Kerrie Mather said 2013 had started strongly, with international passenger numbers up 3.9 per cent so far.

"Management will continue to market Sydney Airport to our airline customers and work closely with our industry and government partners to drive tourism growth," Ms Mather said.

"When combined with new business initiatives and our prudent management of expenses and capital, we remain committed to delivering EBITDA and cash flow growth significantly above passenger growth."

Sydney Airport declared a full year distribution of 21 cents per stapled security.

View the original article here