Iain Withers

LONDON, (Reuters) – British bank Barclays LONDON: On Monday, the company reported a loss of approximately 450 million pounds (592 million dollars) due to mishandled sales of structured products and stated that it will now defer a stock buyback.

Lender claimed it had sold more affected securities than it was authorized to in the United States over a 12-month period.

According to the bank’s statement, these securities must now be repurchased at their original purchase prices.

Two exchange-traded bonds linked to market volatility were the product, according to Reuters. This month, the bank stopped selling and issuing these notes.

According to the bank, its best estimate was that the loss would be 450million pounds. This reduces its core capital ratio to 13-14%. The tax was not taken into account in the loss estimate.

Barclays stated that it will delay its planned 1 Billion Pound share buyback to the second quarter and had also requested an independent review.

According to the bank, regulators also conducted inquiries and requested information.

In early trading, shares in the bank fell 3%

Barclays’s wider investment bank has been a great performer over the years and helped to achieve a record annual profit in 2021.

Shore Capital analysts stated in a note, that the bank seemed to “trip over its shoelaces”.

The bank’s current share buyback is being delayed. However, analysts warned that the mistake could result in a reduction of future capital distributions for shareholders.

($1 = 0.7604 pounds)