Business

Barclays’ third quarter profits rise 23 per cent

“We continue to exercise cost discipline and remain well capitalised,” said Barclays’ chief executive, CS Venkatakrishnan.

Earlier this year, Barclays announced a plan to cut £2 billion in costs over the next few years, which included the elimination of 5,000 jobs in 2023. (Photo: Getty Images)

By: EasternEye

BARCLAYS reported a 23 per cent rise in net profit for the third quarter, supported by stronger performance in its UK and investment banking divisions, along with cost-cutting measures.

The bank’s profit after tax reached nearly £1.6 billion for the three months ending September, compared to the same period last year, according to a company statement released on Thursday.

“We continue to exercise cost discipline and remain well capitalised,” said Barclays’ chief executive, CS Venkatakrishnan.

Earlier this year, Barclays announced a plan to cut £2 billion in costs over the next few years, which included the elimination of 5,000 jobs in 2023. The bank is also on track to complete its acquisition of Tesco Bank next week, marking another step in its UK investments.

“The acquisition of Tesco Bank… forms part of our commitment to invest in the UK,” Venkatakrishnan added.

In the third quarter, net profit at Barclays UK increased by 17 per cent, while its investment banking division saw a 12 per cent rise. Following the results, Barclays’ shares climbed 3.6 per cent at the start of trading.

“Barclays is a multi-headed beast, and these numbers underline once more the strength of its diversified model,” said Richard Hunter, head of markets at Interactive Investor.

Barclays is the second of the four major UK banks to release earnings this season. On Wednesday, Lloyds Banking Group reported a decline in net profits, citing lower global interest rates and higher costs.

NatWest is set to release its earnings on Friday, followed by HSBC next Tuesday.

(With inputs from AFP)

Related Stories