Barclays profits damaged by charges including £127m Carillion hit

Barclays (LSE: BARC.L - news) has posted an annual loss of £1.9bn - hit by a series of one-off costs including £127m from the demise of Carillion (Frankfurt: 924047 - news) .

Pre (Shanghai: 600048.SS - news) -tax profits when exceptional items were excluded rose 10% to £3.54bn despite earnings at its investment bank plunging to £2.1bn, with Barclays blaming the 22% dive on "weak market conditions".

It said charges also included a £901m hit from changes to US corporate tax laws made by US President Donald Trump in December and a previously announced £1.2bn write-down from the sale of Barclays Africa Group .

The bank also reported setting aside £1.2bn for litigation and conduct, including £700m to cover further costs related to the payment protection insurance scandal.

Chief (Taiwan OTC: 3345.TWO - news) executive Jes Staley described 2017 as a "year of considerable strategic progress".

He said: "We have already started to see some of the benefits of our work in 2017.

"Group profit before tax increased 10% year-on-year as a result of our team's focus on execution.

"Although we are only seven weeks into the first quarter, and it is too early to offer formal guidance, we are pleased with the start to the year, and in particular in the markets businesses in CIB (corporate investment banking)."

The bank also said that uncertainty and increased market volatility following the UK's vote to leave the European Union was "likely to continue until the exact nature of the future trading relationship with the EU becomes clear".

Potential risks include increased likelihood of a recession, sparking lower growth, higher unemployment and falling house prices; changes to EU passporting rights; and more difficulty recruiting and retaining talented staff, the bank said.

Barclays bosses said after the results were posted that the bank would take a £127m hit from Carillion's failure.

The outsourcing firm collapsed last month, leaving a number of British banks exposed due to unpaid loans.

Barclays shares ended the day 4.4% higher.