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No-moat Barclays reported first-quarter profits before tax of GBP 2,234 million, down 7% from the same period a year ago. The decline originated from higher litigation and conduct charges of GBP 523 million, which were primarily related to the overissuance of securities in the U.S. as well as slightly higher credit impairments. The one-off litigation charges aside, performance was good and we maintain our GBX 185.00 per share fair value estimate.
Barclays is a universal bank headquartered in the United Kingdom. It operates via two principal segments; U.K. (38% of profit before tax) and International (62% of PBT). In its U.K. segment, the bank provides current accounts, mortgages, savings and investment management services, credit cards, and business banking services to retail clients and small and medium-size enterprises. The international segment includes a corporate bank offering banking solutions to large corporates, a bulge-bracket global investment bank, and a credit card and payments business. In 2018, Barclays generated roughly 52% of its income from the U.K. and 34% from the United States.
