Barclays is hit by AGBP1.6bn US sub-prime loss.

Financial Adviser, February, 2008

Barclays took a AGBP1.6bn hit as a result of its exposure to the US sub-prime sector, according to its 12-month figures to December 2007.

The bank also announced a modest 1 per cent decline in group profits before tax to AGBP7.1bn in 2007. However, profits at the UK banking arm of Barclays increased by 4 per cent from AGBP2.55bn in 2006 to AGBP2.65bn in 2007.

Analysis: Barclays' write-offs were less than expected and the profits were certainly above most analysts expectations. If this is the worst of its hit then the bank should be in a strong position to grow.