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Barclays profits up to Nearly £3bn

Although Barclays has announced pre tax profits in their first six months trading profits in retail banking nearly halved. The profits in question mainly came from the banks investment arm which has seen profits double in the first six months of this year compared with the first six months of last year. Barclays investment arm has been attracting corporate investments as they have been shying away from part nationalised banks.

The question is, do these figures suggest an improvement in the banking sector and provide an indication we are on the road to recovery? In our opinion probably not. The fact is profits in the retail sector are half the amount they were this time last year. And it is the retails sector that we are interested in as this is the sector which lends to the SME market. In our opinion credit is still being restricted to the SME market and Business Financing is still difficult to obtain. The banks are dammed if they do and dammed if they don’t. On one hand they are being told to start lending to the business sector. On the other hand we are in this mess because of their irresponsible lending. WE are in the middle of the worst recession since donkeys ago so is it no wonder.

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