- Barclays Chief Executive CS Venkatakrishnan said the bank “continued to manage credit well, maintained cost discipline and maintained a strong capital position” against a “mixed market backdrop”. said.
- The consensus estimate of analysts polled by Reuters was 1.18 billion pounds, down from 1.33 billion pounds in the second quarter and 1.51 billion pounds in the same period in 2022.
View of Canary Wharf financial district in London.
Prisma by Dukas | Universal Images Group | Getty Images
LONDON – Barclays on Tuesday reported third-quarter net profit of 1.27 billion pounds ($1.56 billion), as strong performances in its consumer and credit card businesses offset weaker investment banking profits. This was due to compensation, and the result was slightly higher than expected.
The consensus estimate of analysts polled by Reuters was 1.18 billion pounds, down from 1.33 billion pounds in the second quarter and 1.51 billion pounds in the same period in 2022.
Other highlights from the quarter include:
- The CET1 ratio, an indicator of a bank’s financial strength, was 14%, up from 13.8% in the previous quarter.
- Return on tangible equity (RoTE) is 11% and the bank is targeting over 10% in 2023.
- The group’s total operating expenses fell 4% year-on-year to £3.9bn as inflation, business growth and investment were offset by “efficiency savings and lower litigation and conduct costs”.
Barclays Chief Executive CS Venkatakrishnan said the bank “continued to manage credit well, maintained cost discipline and maintained a strong capital position” against a “mixed market backdrop”. said.
“We believe there are further opportunities to enhance returns to shareholders through cost efficiencies and disciplined capital allocation across the group.”
He added that Barclays will reveal its capital allocation priorities and revised financial targets in an update to investors alongside its full-year earnings.
Barclays’ Corporate and Investment Bank (CIB) saw profits fall 6% to £3.1bn due to lower client activity in global markets and investment banking fees.
This was driven by a 9% increase in consumer, cards and payments (CC&P) revenue to £1.4bn, reflecting higher US card balances and the transfer of the wealth management and investment (WM&I) division from Barclays UK. As a result, it was almost canceled out.
The bank has not announced any new capital returns to shareholders after announcing a £750m share buyback in July.