Barclays Reports Significant Q3 Profit Increase

Investing.com — Shares of Barclays (LON:BARC) rose on Thursday after it reported a significant jump in attributable profit for the third quarter.

At 7:49 am (1149 GMT), Barclays was trading 3.7% higher at £247.

Attributable profit for the quarter surged by 23% to £1.6 billion, contributing to an overall attributable profit of £4.4 billion year-to-date, compared to £4.38 billion in 2023.

This profit increase coincided with steady revenue growth, with total income for the quarter reaching £6.5 billion, reflecting a 5% increase year-on-year.

Barclays UK net interest income remained strong despite a challenging environment characterized by mortgage margin pressure and adverse dynamics in deposit products.

Group net interest income (NII) excluding the investment bank stood at £1.7 billion, demonstrating resilience in UK retail and business banking operations.

Total operating expenses for the quarter remained steady at £4 billion, showcasing Barclays' ongoing cost management efforts, including £0.3 billion in cost efficiency savings.

Despite inflationary pressures, the cost-to-income ratio remained stable at 61%.

Credit impairment charges were maintained at £0.4 billion, reflecting prudent risk management, as the loan loss rate stood at 37 basis points, below Barclays’ full-year target range.

Barclays also recorded a return on tangible equity of 12.3% for the quarter, indicating its commitment to achieving greater than 10% RoTE for 2024, and the CET1 ratio remained stable at 13.8%.