On Friday, Barclays reported a net profit of £611 million ($797.7 million). During the third quarter UK lenders are seeking recovery from the coronavirus pandemic.
The bank’s net profit attributable to shareholders is more than double the analyst’s expectation of £273.5 million, in part due to a sharp decline in coronavirus-related damage costs.
In the first half of 2020, the UK lender posted a net profit of £695 million after adding a loan loss provision of £1.6 billion in the second quarter.
This time, cash prepared to accommodate bad loans was only £680 million, well below the expected £1 billion.
Barclays stock rose 4.6% at the beginning of Friday’s trading session.
Jes Staley, CEO of Barclays, told CNBC’s “Squawk Box Europe” that “since we received very strong damage compensation and damage reserves in the first half of this year, our credit loss reserves are now far less than £9 billion.” “On Friday.
“It’s the highest level of reserves we have, so we feel very well positioned on our balance sheet to cope with any economic situation we face later this year and next year.”
- The ratio of common stock primary equity (CET1) increased from 14.2% at the end of the first half to 14.6%.
- Group income reached £5.2 billion from £5.54 billion in the third quarter of 2019.
- The return on tangible assets (RoTE) was 5.1%, up from 0.7% in the previous quarter and -2.4% in the third quarter of 2019.
- The net interest margin (NIM) was 2.51%, little changed from 2.48% in the previous quarter.
The bank issued a £100 million community support package distributed to charities in the UK to mitigate the effects of the pandemic.
“This support has been made possible in part because we have a resilient and diversified business model. It is more than offsetting the headwind of consumer business, we will overcome this crisis through strong income performance from CIB (Corporate and Investment Banking). It means maintaining profitability when.” Staley said in a statement Friday.
Barclays bank building
Chris Ratcliffe | Bloomberg | Getty images
CIB recorded an attributable profit of £662 million, down from £69.4 million in the previous quarter. FICC (Fixed Income, Currencies and Commodities) transaction revenues declined from £1.47 billion to £1 billion as the increased volume seen at the beginning of the year continued to normalize, while stock trading revenues fell from £670 million to £69100 from the previous quarter. Increased to ten thousand pounds. quarter.
Staley told CNBC that investment banks have acquired over $1 trillion in debt funding for governments and businesses around the world in the past six months.
After receiving insurance claims amounting to £1.4 billion ($1.8 billion) in the same period in 2019, the bank reported a net loss of £22 million over the same period.
Major lenders have generally been surprised by the uptrend so far this season of revenue. UBS easily exceeds expectations Earlier this week, it posted net income at $2.1 billion.
Barclays stock has fallen more than 42% since the turnaround this year.
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