Private Bank, Wealth Segment Pre-Tax Profit Drops At Barclays; Invested Assets Rise

Tom Burroughes

1 August 2024

today said its private bank and wealth management business reported a pre-tax profit in the six months to 30 June of £199 million ($255.3 million), slipping 10 per cent year-on-year.

The UK-listed business, which earlier this year started to report results for its private banking and wealth segment, said invested assets – assets under management and under supervision – stood at £119.8 billion at end-June, up from £100.8 billion a year before.

Net interest income fell 1 per cent year-on-year to £362 million; net fee, commission and other income, however, rose 41 per cent to £270 million; total income rose 13 per cent to £632 million. Total operating expenses widened by 34 per cent to £436 million.

Across the whole Barclays group, pre-tax profit for the half-year period was £4.215 billion, falling 8 per cent; profit attributable to shareholders dropped 10 per cent to £2.787 billion.

The London-headquartered lender said credit impairment charges, at £900 million, were unchanged from a year earlier; its Common Equity Tier 1 capital ratio was 13.6 per cent. Return on tangible equity was 11.1 per cent in the half-year period; earnings per share were 18.6 pence.

The bank has a target of more than 10 per cent for 2024 and is targeting a cost/income ratio of about 63 per cent, which is in line with the actual result for the half-year.