Profits Rose At Barclays In Q1

Editorial Staff

28 April 2023

yesterday reported a profit, attributable to shareholders, of £1.783 billion ($2.22 billion) for the three months to the end of March, rising 27 per cent from a year earlier. The London-listed group chalked up that profit on total income of £7.237 billion, rising 11 per cent.

Pre-tax profit was £2.6 billion, above expectations.

Total operating costs held steady at £4.11 billion.

The banking group doesn’t break out results for its private bank, wealth and investment management arms.

The group said it had a Common Equity Tier 1 ratio of 13.6 per cent at the end of March; it had a liquidity coverage ratio of 163 per cent, well above regulatory minimum requirements.

Barclays is targeting a return on tangible equity of more than 10 per cent this year, consistent with its medium-term target. On costs, it said it is aiming at a cost/income ratio this year in the low-60s, percentage-wise. At the end of March, it had a ratio of 57 per cent, down from 63 per cent at the end of March 2022.

"Barclays has posted a very solid first quarter, comfortably beating market consensus on profit amidst a turbulent tie for the broader banking sector,” Matt Britzman, equity analyst at Hargreaves Lansdown, said. “It's still early days for the major UK banks reporting cycle, but signs look promising that issues over the pond aren't leaking into the wider ecosystem. Credit card defaults in the UK remain below pre-pandemic levels, highlighting the UK consumers' resilience despite mounting costs. There are some signs of strain in the US, where credit card balances are building.”