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Barclays shares rise after jump in Q3 profit and steady revenue growth

Published 24/10/2024, 10:50 pm
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Investing.com -- Shares of Barclays (LON:BARC) rose on Thursday after it reported a jump in attributable profit for the third quarter. 

At 7:49 am (1149 GMT), Barclays was trading 3.7% higher at £247.

Attributable profit for the quarter surged by 23% to £1.6 billion for the quarter, which in turn contributed to an overall attributable profit of £4.4 billion for the year-to-date, compared to £4.38 billion in 2023.

This increase in profit came alongside a steady revenue growth, with total income for the quarter reaching £6.5 billion, up 5% year-on-year. 

Barclays UK net interest income also remained strong, despite a challenging environment marked by mortgage margin pressure and adverse product dynamics in deposits. 

Group NII excluding the investment bank stood at £1.7 billion, showcasing resilience in the UK retail and business banking operations.

Group total operating expenses for the quarter remained steady at £4 billion, reflecting Barclays' ongoing cost management efforts, which included £0.3 billion in cost efficiency savings.

Despite inflationary pressures, the cost-to-income ratio remained steady at 61%. Credit impairment charges were maintained at £0.4 billion, indicating prudent risk management as the loan loss rate stood at 37 basis points, well below Barclays’ full-year target range.

Barclays also recorded a return on tangible equity of 12.3% for the quarter, reflecting its commitment to achieving greater than 10% RoTE for 2024 and CET1 ratio remained stable at 13.8%. 

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