Higher costs, cautious lending weaken Barclays' profits

The bank's financial results for the year ended 31 December 2012 indicates that loans and advances were flat as net interest income   declined by three percent to P961 million while operating expenses rose six percent.

During the year, Barclays, which realised an increase in its customer base, took a stance to become more cautious in churning out unsecured loans. The decision has resulted in lower performance in interest income. However, growth in non-interest income through fees and commissions was lukewarm rising by a mere five percent to P275 million.