Barclays posts profit slump after hit from costly trading error in the U.S.

The drop in profit was due to a large provision relating to a trading error in the US.

The British bank's net profit attributable to shareholders was in line with analysts' expectations. It was a decline from the same period a year ago.

In the first half of the year, the bank took litigation and conduct charges of over 9 billion pounds, including a cost related to over-issuance of securities in the US.

The bank said earlier this year that it had sold more structured notes in the US than it was allowed to.

The bank said that the litigation and conduct charges booked in the second quarter were offset by a hedge.

The cost of repurchasing the excess notes is included.

The use of communication tools by staff in the finance industry has been the subject of an investigation.

There were other highlights for the quarter.

• Group revenues up to £6.7 billion, from £5.4 billion a year ago.
• CET 1 ratio, a measure of bank solvency, coming in a 13.6%, down from 13.8% in the first quarter.
• Total operating expenses were £5 billion, up from £3.7 billion in the second quarter of 2021.

Concerns over interest rates, inflation and a slowdown in growth will lead to a 15% decline in the share price of the British bank.

The bank achieved a return on tangible equity of 10.1% in the first half of the year, according to the CEO.

The income growth that we achieved in the first quarter continued into the second quarter.

The performance in the first half shows the resilience and advantage that comes from being diversified.

Venkat became the new CEO of the bank in November 2021.