Barclays and HSBC impairment provisions soar
Barclays’ provisions increase 54%; HSBC’s by 29%
UK banks’ credit impairment provisions jumped £5.3 billion ($7.2 billion) in the three months to March 31 as the transition to new loan-loss accounting standards took effect.
An analysis of the six largest British banks’ first-quarter earnings reports found that the transition to IFRS 9, which came into force on January 1, has had the effect of swelling dealers’ loan-loss allowances. However, the impact of the switch varied dramatically across firms.
Barclays reported a £2.5 billion hike in
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