Barclays CEO on inflation: 'In the longer term, you've got to be worried'

Summary

Barclays CEO C.S. Venkatakrishnan discusses strong Q1 results, highlighting solid performance across divisions and confidence in full-year targets. He warns about long-term inflation and oil price risks, and addresses a fraud-related impairment charge, expressing caution on lending to smaller, vulnerable companies. He also notes vulnerability in subprime auto lending in a weaker economy.

• Barclays reported a strong Q1 with 13.5% ROTE and solid performance in UK and investment bank divisions.
• Consumer and corporate clients in both the UK and US are currently absorbing inflation well.
• CEO expresses concern about inflation and oil prices in the longer term.
• A £228 million impairment charge resulted from fraud exposure to a mortgage originator.
• Barclays is being cautious on lending to smaller firms with weaker financial controls.
• The bank remains committed to consumer lending, including a planned acquisition of Best Egg in the US.
• Subprime auto lending models are seen as vulnerable in a weaker economic environment.
• The CEO reiterated Barclays' full-year financial targets.