IFRS 9 eases impairment charges, softening Barclays' profit drop

Credit impairment charges at Barclays plummeted during the first half of this year, reflecting the volatility introduced to banks’ earnings by the switch to the IFRS 9 accounting standard in January.

The charges fell by £483 million ($633 million) in the six months to June 30, a 46% decline from a year ago. The group’s loan loss rate – its impairment charge divided by gross outstanding loans – was 35 basis points, 14bp lower than end-June 2017.

The bank stated in its first-half earnings that

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