LONDON (AFP) – British bank Barclays said yesterday that net profit jumped 27 per cent in the first quarter, boosted by rising interest rates and non-repetition of exceptional charges.
Profit after tax increased to GBP1.8 billion (USD2.2 billion) compared with the first three months of 2022, when earnings were hit by litigation and bad debt costs, it said in a statement.
Barclays was “supported by higher interest rates and the continued investment in our transformation into a next-generation, digitised consumer bank”, the lender added.
Pre-tax profit rallied 16 per cent to GBP2.6 billion, comfortably beating market expectations and making Barclays the biggest gainer on London’s top-tier shares index yesterday.
The Bank of England and its global counterparts have ramped up interest rates to tackle sky-high inflation.
It comes as Britain endures a cost-of-living crisis, with annual inflation holding stubbornly above 10 per cent.
Retail banks in turn have raised their own interest rates on loans, including mortgages, further fuelling the squeeze on living costs.
Barclays’ first-quarter revenue rallied 11 per cent to GBP7.2 billion.
“This is a strong first quarter,” chief executive CS Venkatakrishnan said in the earnings release.
“The momentum across the group allows us to maintain a robust capital position, deliver attractive returns to shareholders, and support our customers and clients through an uncertain economic environment,” he added.
Barclays’ share price gained almost five per cent in morning London deals.
“There can be little cause for complaint on a set of numbers which have both grown and beaten expectations virtually across the board,” said head of markets at Interactive Investor Richard Hunter.
“The diversity of the group’s businesses is a boon to Barclays,” he added.
