Barclays posts strong third quarter results with profits before tax reaching £6.9m

Barclays posts strong third quarter results with profits before tax reaching £6.9m

Jes Staley

Barclays has posted its third-quarter results for the year, revealing profits before tax of £6.9 million, compared to £2.4m in the third quarter of 2020.

The bank’s net interest income dropped by 7% throughout the quarter to £5.8m, while its total income dropped slightly from £16.8m in Q3 2020 to £16.7m.

Barclays’ net operating income rose by 39% to £17.4m, while its total operating expenses dropped by 6% to £10.7m.

The bank has also announced a credit impairment net release of £622m. The net release included a reversal of £1.1bn in nondefault charges, primarily reflecting the improved macroeconomic outlook. Excluding this reversal, the charge was £0.5bn, reflecting reduced unsecured lending balances and low delinquency.

Total assets increased to £1,407bn (December 2020: £1,350bn) primarily due to a £37bn increase in cash at central banks, a £29bn increase in financial assets at fair value due to an increase in secured lending, an £18bn increase in cash collateral and settlement balances and a £17bn increase in trading portfolio assets due to increased activity.

Jes Staley, Barclays CEO, said: “On top of a good first half, a strong third-quarter performance means Barclays has delivered its highest Q3 YTD pre-tax profit on record in 2021, demonstrating the benefits of our diversified business model. We continue to support our customers and clients through the COVID-19 pandemic, have achieved a double-digit RoTE in every quarter year to date, and expect to deliver a full year RoTE above 10%.

“While the CIB performance continues to be an area of strength for the Group, we are also seeing evidence of a consumer recovery and the early signs of a more favourable rate environment. Against that backdrop, we are focused on balancing cost efficiencies with further investment into high-returning growth opportunities.”

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