Barclays Q1 2023 results


The headquarters of Barclays Plc beyond West India Quay Docklands Light Railway station in the financial district of Canary Wharf in London, UK, Monday March 20, 2023.

Bloomberg | Bloomberg | Getty Images

LONDON – Barclays Thursday reported net profit of £1.78 billion ($2.2 billion) for the first quarter, beating expectations and rising 27% year-on-year.

A consensus poll of Reuters analysts predicts net profit of £1.432 billion.

On a branch basis, revenue from the bank’s consumer, cards and payments division grew 47%, offsetting just 1% growth in its corporate and investment banking division. She attributed this in part to her acquisition from the Gap retailer’s credit card portfolio.

Barclays UK revenue increased by 19% due to improved net interest income.

The bank also reported £500 million of credit impairment charges, which it said resulted from rising US card balances and the “expected continued normalization of US card delinquencies”.

Impairment charges are used by companies to write off assets. In its previous results, Barclays said it set aside £1.2bn for such charges last year as its customers grappled with cost pressures.

Barclays shares were up 4.3% at 8:55 a.m. in London.

Jefferies analysts said the “robust” results suggested scope for consensus upgrades, with “not much to do.”

On the right track

Barclays said it “remains on track to meet its 2023 targets, with all performance metrics in line or ahead of expectations” in the first quarter.

CEO CS Venkatakrishnan described it as a “strong” quarter, with revenue up 11% to £7.2bn.

“The dynamic within the group allows us to maintain a strong capital position, deliver attractive returns to shareholders and support our clients and customers in an uncertain economic environment,” he said in a statement.

These results come after a turbulent period for the global banking sector, which saw the collapse of US-based Silicon Valley Bank and several other regional lenders in early March and the rapid takeover of Swiss credit by its Swiss rival UBS.

Earlier on Thursday, Deutsche Bank reported net profit of 1.158 billion euros ($1.28 billion) in the first quarter, beating consensus forecast of 864.54 million euros.

The bank was briefly swept up in banking volatility last month, when its stock plunged and credit default swaps – a form of insurance for a company’s bondholders against its default – rose sharply .

Market watchers are once again focused on U.S. banks this week, after the First Republic revealed larger-than-expected deposit outflows in the first quarter as its stock tumbled to a record low.

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top