Barclays reports 12% profit growth as investment bank underperforms

Summarised from 4 outlets · 5 reports · Updated 22 Oct, 08:28 · Archive

Barclays reported pre-tax profits of £2.3bn for the third quarter, up 12% year-on-year, though its investment bank missed forecasts.

Barclays reported pre-tax profits of £2.3bn for the three months to end September, up 12 per cent year-on-year, narrowly missing internal consensus forecasts of £2.4bn. The FTSE 100 lender's investment bank, a key revenue engine, came in at £3.1bn in income, short of a £3.3bn forecast and growing just one per cent year-on-year.

Within the investment bank, performance was mixed. Equities trading soared 47 per cent to £1bn, boosted by market volatility on global stock markets. However, fixed income tumbled 19 per cent year-on-year to just over £1bn owing to lower client activity in rates and credit alongside macroeconomic headwinds. The retail and corporate banks also reported income growth, as did wealth management.

Barclays made £200m in cost efficiency savings during the quarter and has a further £300m planned for the final three months of the year. In the UK, loans grew 7 per cent year-on-year with particular strength in corporate business, up 14 per cent. Net interest income at UK retail banking operations rose 6 per cent to £2bn.

Chief executive CS Venkatakrishnan said he was pleased with the bank's operational and financial momentum. 'With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets,' he said. 'We are confident in and committed to the 2028 targets that we laid out earlier in the year.'

The bank announced a new £500m share buyback, bringing the total amount handed to shareholders so far this year to £2.8bn, up 46 per cent year-on-year. The announcements come days ahead of Chancellor John Healey's budget on 28 October, which is expected to include an increase in bank taxes. The Trades Union Congress has been calling for higher taxes on lenders, saying their strong profits should translate into greater public contributions at a time when households face rising costs.

How it is being reported

• Barclays profits up 12% as UK banks brace for tax increase in budgetLender gives further £500m to shareholders after reporting £2.3bn in pre-tax profits from July to September Business live – latest updates Barclays is giving a further £500m to shareholders after reporting a jump in quarterly profits, as the lender steels itself for an increase in UK bank taxes at next week’s budget. The lender said it logged £2.3bn in pre-tax profits over the July to September quarter, up 12% from £2.1bn during the same period last year. Continue reading...Guardian World · 22 Oct, 08:06
• Barclays reveals profit growth of 12% after £200 million cost savingsIn the third quarter, the bank said it made around £200 million worth of cost savings.Evening Standard · 22 Oct, 07:58
• Barclays reveals profit growth of 12% after £200 million cost savingsIn the third quarter, the bank said it made around £200 million worth of cost savings.Independent Business · 22 Oct, 07:58
• Barclays profits jump ahead of looming bank tax; French bond yields hit fresh 24-year high – business liveFrench risk premium over German bonds widest since 2011 as oil prices climb above $111 a barrel Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. Barclays ’ profits jumped in the last quarter and it handed more cash to shareholders as further bank taxes looms in John Healey ’s budget next Wednesday. I am pleased with the ongoing momentum of Barclays’ operational and financial performance. With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group…The Guardian · 22 Oct, 07:44
• Barclays profit misses after investment bank comes up shortBarclays missed profit expectations in the third-quarter after its investment bank lagged behind forecasts despite a boost on the trading desks. The FTSE 100 bank reported a £2.3bn pre-tax profit for the three months to end September, narrowly missing internal consensus of a £2.4bn haul, though up 12 per cent year-on-year. It came as total [...]City AM · 22 Oct, 07:28

In this story: Barclays · CS Venkatakrishnan · John Healey · Trades Union Congress · Paul Nowak · United Kingdom

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