Barclays results for third quarter of 2018

Barclays
CEO Jes Staley

REUTERS/Lucas
Jackson

• Barclays reports increased profits in the third quarter
  of 2018, with trading and investment banking performing
  particularly strongly.
• Pre-tax profits climbed 32% to £1.46 billion, the bank
  said, up significantly from the £1.1 billion profit reported in
  the same period last year.
• Much of this outperformance was down to the bank’s
  under fire trading and investment banking arms, with markets
  trading revenues increasing 19% to £1.2 billion
• The results will buoy the bank’s management which is
  facing pressure from activist investor Edward Bramson over the
  investment banking unit.

Barclays produced an unexpectedly strong set of results in the
third quarter of 2018, boosted by an impressive performance from
the British bank’s trading arm.

Overall,
Barclays reported a net third quarter profit of £1 billion,
well above market expectations, and above the £583 million profit
made in the same period last financial year. Pre-tax
profits climbed 32% to £1.46 billion, the bank said.

Much of this outperformance was down to the bank’s under
fire trading and investment banking arms, with markets trading
revenues increasing 19% to £1.2 billion. Bond, currency and
commodity trading revenues increased from £627 million to £688
million.

“During the third quarter our corporate and investment bank
outperformed peers again in markets, with a 19 per cent increase
in income,” Barclays CEO Jes Staley said in a statement alongside
the results.

The results will buoy the bank’s management which is facing
pressure from activist investor Edward Bramson over the
investment banking unit.

Bramson wants to shut
almost all trading activity at Barclays’ investment
bank as part of plans to cut costs and
boost returns.

While overall profits at the bank increased, total incomes
dropped a little, falling from £5.17 billion in Q3 last year, to
£5.13 billion this year.

“A jump in profits at Barclays can be largely put down to a
lower level of bad loans, stemming from improved economic
forecasts, stronger sterling, and some one-off adjustments,”
Laith Khalaf, a senior analyst at FTSE 100 investment firm
Hargreaves Lansdown said.

“That’s all well and good, but it’s doesn’t give investors
a great deal to hang hopes on in terms of profitability going
forward.”

Barclays shares are broadly flat on Wednesday, trading
higher by just 0.36% as of 9.05 a.m. BST (4.05 a.m. ET).