Updated from 2:47 a.m. EDT
) - U.K bank
reported first-half 2009 earnings rose 10% to 1.89 billion pounds ($3.16 billion) from 1.72 billion pounds a year earlier on strong results in its Barclays Capital division.
The earnings fell short of the estimates of analysts.
Pretax profit in the period was 2.98 billion pounds vs. 2.75 billion pounds in the same period in 2008. Impairments in the first half of 2009 were 4.56 billion pounds compared with 2.45 billion a year earlier.
The bank said impairment charges for bad loans increased 73% to 3.9 billion pounds, and unpaid credit card bills in the U.S. and Britain, both symptoms of the recession, also hit earnings. Barclays said a third of the increase was because of currency movements and methodology revisions, with the remainder attributed to the recession.
Pretax profit from Barclays Capital increased 100% to 1.05 billion pounds, boosted by the acquisition of
business in North America. The gain, however, was offset by a charge of 893 million pounds relating to own credit on structured notes.
The bank said it wouldn't be paying an interim dividend, but said it expects to resume payments by the end of 2009.
Revenue net of insurance claims was up 37% in the first six months of 2009 to a record 16.25 billion pounds.
The bank said the second half of the year would be challenging but said a broadly based business outside of Britain would help the bank weather the recession.
"The investments we have made, particularly in our international businesses, are driving very strong income performance and allowing us to absorb the consequences of the economic downturn," CEO John Varley said in a statement.
-- Reported by Joseph Woelfel in New York
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