A downturn during 2009 at Barclays
Asset & Sales Finance has had a major knock-on effect on its
parent’s commercial division.
A 10 percent fall in total assets in
commercial bank had been driven “by reduced overdraft borrowings
and lower volumes in Barclays Asset and Sales Finance
business”.
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The figures, reported last month in Barclays
financial statement for year end 2009, also stated “the number of
customers [of the corporate arm] fell 6 percent primarily as a
result of reductions in exposures to high-risk sectors within
Barclays Asset and Sales Finance”.
A Barclays spokesman said Barclays Asset
Finance had “experienced a fall in both customer numbers and
volumes in 2009”.
The spokesman linked this fall to “reduced
customer demand during the deteriorating economic conditions” and
the “fall in Barclays Asset Finance numbers is broadly consistent
with that experienced right across the UK asset finance market in
2009”.
He added: “During recessions, many businesses
choose to conserve cash and cut back on business investment.”
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By GlobalDataTotal assets at Barclays Commercial Bank
dropped by £8.5 billion (€9.7 billion) to £75.5 billion. A fall in
the division’s pre-tax profits of 41 percent to £749 million was
driven “by significantly higher impairment”.
Ana Gyorkos
