Pre-Tax Profit Rises At Barclays In Q2

Editorial Staff

27 July 2023

today announced a second-quarter pre-tax profit of £1.964 billion ($2.53 billion), rising 31 per cent on a year earlier, while profit attributable to shareholders stood at £1.328 billion, rising 24 per cent.

Total income dipped 6 per cent year-on-year to £6.284 billion; operating costs also fell 6 per cent to £3.919 billion, while litigation and conduct-related costs fell sharply in the reporting period, down to £33 million from £1.334 billion, the UK banking group said. Group operating expenses fell to £3.952 billion from £5.016 billion.

At the end of June, the lender said it had a Common Equity Tier 1 ratio – its capital buffer – of 13.8 per cent.

The bank does not break out its wealth management and private banking results.

"We have positioned Barclays carefully for this mixed macroeconomic environment and delivered a consistent performance in the second quarter,” C S Venkatakrishnan, group chief executive, said.

“Through our diverse sources of income, prudent risk management, and ongoing cost discipline we have again demonstrated the stability and strength of the franchise we have built over many years. This means we are able to distribute increased capital returns to shareholders, while providing targeted support to our customers and clients. Looking forward we are very confident of meeting our targets for the full year."

The bank said it is targeting a return on tangible equity of more than 10 per cent this year. On costs, it is aiming at a cost/income ratio of around the low 60s this year.