On Thursday, Barclays PLC raised its annual outlook after reporting stronger-than-expected third-quarter earnings, driven by robust performance in its UK operations and a reduction in provisions.
Barclays lifts guidance on strong results
Total income increased by 4.6% to £6.54 billion, while pretax profit surged 18% to £2.23 billion. RBC Capital Markets had projected total income of £6.46 billion and pretax profit of £1.97 billion.
As a result, Barclays shares rose 2.9% to 245.07 pence in London, outperforming the FTSE 100, which was up 0.5%.
Income from Barclays UK grew 4.3% to £1.95 billion, while investment banking income rose 5.9% to £2.85 billion. However, total income at the Private Bank and Wealth Management fell 3.4%, and the US Consumer Bank unit saw a 2.3% decline.
Operating costs remained stable at £3.95 billion, with the cost-to-income ratio improving to 61% from 63%. Impairment charges decreased to £82 million from £267 million, supported by low delinquency rates in UK cards and a strong mortgage lending portfolio.
The net interest margin rose to 3.34% from 3.04%. Looking ahead, Barclays expects net interest income for 2024 to exceed £11.0 billion, up from previous estimates. The bank plans to return at least £10 billion to shareholders through dividends and buybacks between 2024 and 2026, aiming for total income of £30 billion by 2026.
Chief Executive CS Venkatakrishnan emphasized the bank's commitment to its three-year plan, noting a return on tangible equity (RoTE) of 12.3% in Q3 2024, supporting the target of over 10% RoTE for the year.
