Barclays posted an 18% reduction in net earnings in the first quarter due to litigation and bad debt losses on Thursday.

Profit after tax declined to £1.4 billion ($1.8 billion, 1.7 billion euros) compared with the first three months of 2021, Barclays said in an earnings statement.

Barclays booked an already-flagged litigation hit of £500 million after selling more products to investors in the US than it was allowed.

It took a hit also of £141 million on bad debt charges as customers struggle to pay back loans amid soaring inflation.

“We remain focused on the impact higher prices are having on our customers and our small business and corporate clients, all of whom are facing far harder conditions this year as a result of inflation, supply chain issues and higher energy costs,” chief executive C.S. Venkatakrishnan said in the earnings statement.

“We will support them through this difficult period wherever we can, and support the wider economy just as we did through the Covid-19 pandemic,” he added.