July 29, 2016 / 6:15 AM / a year ago

BRIEF-Barclays underlying pretax profits fall as non-core run down accelerates

July 29 (Reuters) - Barclays Plc

* Group profit before tax of £2,063m

* Profit before tax decreased 16% to £1,610m. Underlying profit before tax, which excludes impact of notable items decreased 25% to £1,610m

* Additional provision of £400m relating to uk customer redress.

* Rwas increased £11.1bn to £178.4bn primarily due to an increase in fair value of derivative exposures and appreciation of usd against gbp

* Credit impairment charges increased 10% to £377m primarily driven by balance growth and appreciation of average usd and eur against gbp

* Says non-core rwa guidance of around £20bn in 2017 remains unchanged

* Restructuring of terms of education, social housing and local authority (eshla) loans with lender option borrower option (lobo) features

* Markets income decreased 6% to £2,695m

* Underlying profit before tax, which excludes impact of notable items decreased 10% to £2,289m

* Providing additional guidance on costs for non-core in 2017 to be in a range of between £400-£500 million, significantly below expected 2016 level.

* Says barclays is well positioned to weather any potential economic consequences of that brexit decision

* Financial conduct authority (fca) has alleged that bplc and bbplc breached their disclosure obligations in connection with two advisory services

* Fca has imposed a £50m fine

* Core profit before tax increased 19% to £3,967m

* Underlying cost: income ratio was 61% (h115: 59%) and underlying rote was 10.7% (h115: 12.4%)

* Common equity tier 1 (cet1) ratio increased to 11.6

* Says 2016 core cost guidance of £12.8bn, excluding litigation and conduct charges, and subject to foreign currency movements 1 , remains unchanged

* Total income, including a gain on disposal of barclays’ share of visa europe limited increased 49% to £2,345m.

* Says he existing non-core income and operating expenses guidance for 2016 remains unchanged

* Says 2017 non-core operating expenses are expected to be within range of £400m to £500m excluding notable items

* Announcement of exclusive discussions with anacap financial partners for potential sale of french retail, and wealth and investment

* Total assets increased £28.3bn to £87.7bn driven by an increase in liquidity buffer held due to uncertainty relating to 23 june 2016

* Barclays uk and barclays corporate & international, continue to thrive. Both produced double digit rotes in half, which aggregate to a collective 12.5%

* Cost remains firmly under control and we are on track to meet our target of £12.8bn in core expenses for 2016

* Total core operating expenses reduced 10% to £6,747m driven by lower litigation and conduct charges, savings from strategic cost programmes and reduced compensation costs

* Says picture in q2 is one of strong and accelerating progress against our strategy. We remain confident that it is right plan for barclays, and see no reason to adjust it, or pace of delivery, in light of vote by uk last month to exit eu. Source text for Eikon: Further company coverage: (Reporting By Sinead Cruise)

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