UK’s Barclays reports 38% slide in net profit for 2020

Barclays on Thursday reported a full-year profit of £1.53 billion ($2.11 billion) for 2020, down 38% from 2019 but outstripping analyst expectations.

The British lender posted a fourth-quarter net profit attributable to shareholders of £220 million, despite the U.K. navigating fresh nationwide lockdown measures amid a resurgence of Covid-19.

Strong performance in the corporate and investment bank, which saw full-year income increase 22% to £12.5 billion, offset a sharp incline in impairment charges as a result of the deteriorating economic outlook brought about by the pandemic.

Analysts polled by Refinitiv had expected a fourth-quarter net loss of £44.88 million to bring about a full-year net profit of £1.22 billion.

Barclays CEO Jes Staley told CNBC’s “Squawk Box Europe” on Thursday that there would be pent up demand in the U.K. economy to unlock later in the year.