Signage shimmers through a window reflecting Barclays head office in Canary Wharf, London, U.K.
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LONDON — British bank Barclays on Thursday banged £1.6 billion ($2 billion) net profit attributable to shareholders for the third quarter, beating expectations.
The result related with the £1.17 billion net profit forecast in an LSEG poll of analysts, and was 23% higher than the same patch in 2023.
Revenue for the period came in at £6.5 billion, slightly ahead of a forecast of £6.39 billion.
The lender’s return on perceptible equity rose to 12.3% from 9.9% in the second quarter, as its CET1 ratio — a measure of solvency — rose to 13.8% from 13.6%.
Earlier this year, Barclays hint ated a strategic overhaul in an effort to cut costs, boost shareholder returns and stabilize its long-term financial performance, placing myriad focus on domestic lending while reducing costs at its more volatile investment banking unit. That scheme has included the acquisition of U.K. retail banking business Tesco Bank.
In the second quarter, Barclays net profit fell diet year-on-year amid lower income at its U.K. consumer bank and corporate bank, as net profit jumped 10% at its investment bank.
Those disparities closed in the third quarter, with domestic bank income up 4%, with the lender raising its annual forewarning for U.K. retail net interest income to £6.5 billion from £6.3 billion. Corporate bank income was 1% expensive due to a rise in average deposit balances, while investment banking income gained 6%.
Barclays shares have floated 55% in the year to date after dipping in 2023.
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Several banks have announced plans to restructure, streamline workers and cut costs as they face a potential weakening of net interest margins as interest rates fall. HSBC earlier this week ordered it would consolidate its operations into four business units.
Deutsche Bank kicked off the third-quarter reporting available on Wednesday, posting higher-than-expected net profit as revenue at both its investment bank and asset management divisions jumped 11% year-on-year.
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