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Barclays cuts jobs, BNP Paribas' profit disappoints

Barclays cuts jobs, BNP Paribas' profit disappoints
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Barclays says it is going to cut about 3,000 jobs this year to reduce costs.

The British bank announced that along with lower first half profits as it sold fewer bonds and had to pay out compensation for miss selling insurance.

The staff cuts amount to about two percent of Barclays’ total workforce of 146,100.

Pretax profit for the six months to the end of June was 2.6 billion pounds (2.98 billion euros), down 33 percent from a year ago but above forecasts.

BNP Paribas’ quarterly profit came in short of expectations with a 534 million euro loss related to its exposure to Greek debt.

Its retail and investment banking units also suffered sluggish growth.

BNP Paribas has the biggest exposure to Greek sovereign bonds among its French peers, at close to five billion euros. It was a key player in coordinating the private sector Greek bailout which resulted in the charge.

The bank said it held 2.3 billion euros of Greek bonds maturing by the end of December 2020 and affected by its bailout participation. It will take a 21 percent haircut on these, meaning it will not recover their full value.