 Barclays is the UK's biggest credit card lender |
Shares in Barclays have fallen by more than 4% after the bank said consumer bad debts were worse than expected. The comment came as Barclays issued a trading statement saying it had seen good profits growth in the January to March quarter.
Barclays said the increase in bad debt was largest at its Barclaycard credit card subsidiary. The bank is the UK's biggest credit card lender.
It previously said defaulted personal debts would reach �1.4bn this year.
This compares with the �1.1bn of bad debts Barclays reported in 2004.
'Relatively fine'
Barclays warning on bad consumer debt comes a week after rival HSBC also said UK consumer lending quality was worsening.
Revenue at Barclays' UK retail bank was "broadly flat" in the first quarter because of weaker mortgage and retail savings income, the bank said.
"It [Barclay's trading update] all looks fine with the exception of their statement about UK consumer credit," said WestLB analyst James Hamilton.
Shares in Barclays were down 22 pence, or 4.0%, at 528p by the close of trade on Thursday.
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