Barclays cuts back risky lending after £228m hit from UK mortgage firm MFS
Summary
Barclays is reducing loans to risky borrowers after losing £228 million linked to the failure of a UK mortgage lender called Market Financial Solutions (MFS), which is under investigation for fraud. The bank’s CEO also warned about rising fraud cases and increased losses in recent quarters, affecting its lending decisions.Key Facts
- Barclays took a £228 million loss due to the collapse of the mortgage lender MFS.
- MFS failed in February and is currently being investigated for fraud by UK regulators.
- Barclays’ total credit impairment charges rose to £823 million in the first quarter of 2026.
- The bank is limiting loans to certain high-risk finance companies with weak controls.
- Barclays also increased provisions to £430 million for a UK motor finance compensation scheme.
- First-quarter pre-tax profit grew 3% to £2.8 billion, with revenue up 6% to £8.2 billion.
- Investment banking income surpassed £4 billion for the first time, helped by market trading.
- Barclays plans to give debit card users 5% cashback on fuel at Tesco to ease petrol price worries.
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