Barclays’ profits beat expectations in Q3

Barclays has reported a 23% increase in attributable profits to £1.6bn in its third quarter, a figure better than the bank had expected.

The bank also saw its profits before tax rise by 18% year-on-year in Q3 to £2.2bn, which also came in ahead of estimates closer to £2bn.

Barclays also revealed that its investment bank posted an income of £2.9bn in Q3, a figure 6% up on last year, as equities trading and a rise in dealmaking activity helped to improve fees and underwriting income.

In the three months to the end of September, Barclays also confirmed it had delivered a further £300m in cost savings, taking year-to-date savings to £700m and putting it on track to deliver around £1bn in efficiencies for the full year.

Barclays chief executive, C. S. Venkatakrishnan, said the bank had been “encouraged” by its progress but added “there is more work to do”.

“The group is on track to achieve its target of greater than 12% RoTE in 2026,” he commented. “In Q3, Barclays delivered a RoTE of 12.3%, supporting our target of greater than 10% in 2024.

“Tangible net asset value (TNAV) per share increased to 351p, up 11p versus prior quarter and up 35p year-on-year. The acquisition of Tesco Bank, to complete on 1 November 2024, forms part of our commitment to invest in the UK. We continue to exercise cost discipline and remain well capitalised with a Common Equity Tier 1 (CET1) ratio at the end of the quarter of 13.8%."

AJ Bell investment director, Russ Mould, added that Barclays’ announcement had “got investors excited”, with the shares adding to the significant gains already made in 2024 in early trading.

“In previous quarters, the company’s investment banking operation was doing a lot of the heavy lifting but in the three-month period just gone its consumer and corporate banking arms have come to the party too,” Mould highlighted.

“Critically, the company is guiding the market higher on the key net interest income metric – with the company benefiting from its management of interest rate risk. Barclays, like the rest of the industry, has also been helped by the slower-than-expected trajectory of rate cuts to date.”



Share Story:

Recent Stories