Barclays profit rise 23% as dealmaking lifts earnings
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The news: Barclays reported a better than expected 23% rise in third-quarter profits, reaching £1.6 billion ($3.13 billion) supported by a recovery in dealmaking and higher interest rates.
The numbers: The bank’s investment banking division saw a 6% increase in income, driven by equities trading and debt capital market activities. Investment banking fees surged by 58%, benefiting from a revival in mergers and acquisitions (M&A) after a two-year lull.
Barclays also raised its full-year net interest income forecast to over £11 billion, reflecting the continued benefit of high interest rates.
The context: CEO CS Venkatakrishnan’s ongoing three-year plan is yielding results, with cost cuts and stronger performance across divisions, including its UK retail bank.
Barclays’ shares have gained 55% this year, and the stock closed 4.16% on Thursday (Friday morning AEDT).
The sources: Barclays releases, The Financial Times
