Barclays reported a £2.1bn charge in the first quarter, driven by potential losses linked to the coronavirus outbreak. Photograph: Suzanne Plunkett/Reuters

The Covid-19 pandemic could force Barclays to take a £4.5bn charge to cover bad debts this year, as customers struggle to repay their loans in the coronavirus crisis.

The bank reported a £2.1bn charge in the first quarter, driven by potential losses linked to the pandemic. The extra costs sent profits down by 38% to £913m, a bigger fall than analysts had expected.

Barclays said £1.2bn of the first quarter charge reflected “initial estimates of the impact of the Covid-19 pandemic,” though expected losses were partially offset by stimulus measures announced by government and central banks in the UK and US in recent weeks.

The bank was also affected by a plunge in oil prices because of the dramatic fall in demand during the outbreak, as well as a £400m charge linked to defaults by a single unnamed corporate client.

Barclays is forecasting a near-8% drop in UK economic growth for the full year, which is expected to result in a surge in defaults by both corporate and retail customers. It means Barclays could be forced to put aside up to £4.5bn to cover bad debts due to the outbreak in 2020, a spokesperson for the bank confirmed.

Barclays’ chief executive, Jes Staley, said: “Despite all the challenges we face as a consequence of Covid-19, I am confident Barclays will emerge from this pandemic well placed to continue to serve our customers and clients, the communities and economies in which we operate, and our shareholders.”

It is the latest bank to reveal the costs linked to the pandemic. On Tuesday, HSBC revealed it could end up taking an $11bn (£8.8bn) charge to cover loan losses for 2020, after the pandemic hit its main markets across Asia and Europe.

Barclays did not provide an update on a UK regulatory investigation into Staley, which centres on whether he was transparent enough over his relationship with the sex offender and disgraced financier Jeffrey Epstein.