Find out how the banking giant performed…
Barclays has reported a net profit of £1.3 billion in the second quarter of the year, up from the £1.1 billion the banking group recorded in the same period last year – a 24% increase.
One of the UK’s biggest lenders, Barclays’ total revenues hit £6.3 billion, down 6% from the £6.7 billion reported last year.
Its operating costs increased by 6% to £3.9 billion, while credit impairment charges went up by 86% to £372 million.
Barclays’ interim results announcement on Wednesday also showed that the group delivered return on tangible equity of 11.4% in Q2 and 13.2% in the year’s first six months, with a half year dividend of 2.7p per share.
#BarclaysResults: “We have positioned Barclays carefully for this mixed macroeconomic environment and delivered a consistent performance in the second quarter.” Group CEO, CS Venkatakrishnan, on our Q2 2023 Results.
— Barclays Bank (@Barclays) July 27, 2023
Read the full announcement: https://t.co/InPlpOtn6H pic.twitter.com/pDCdglGjmP
“We have positioned Barclays carefully for this mixed macroeconomic environment and delivered a consistent performance in the second quarter,” commented C. S. Venkatakrishnan (pictured), group chief executive at Barclays.
“Through our diverse sources of income, prudent risk management, and ongoing cost discipline, we have again demonstrated the stability and strength of the franchise we have built over many years. This means we are able to distribute increased capital returns to shareholders, while providing targeted support to our customers and clients.”
Venkatakrishnan added that, looking forward, the group is confident of meeting its targets for the full year.
James Fox, equity research analyst at InvestingReviews.co.uk, said Barclays’ performance report showed a relatively robust set of results amid the current global economic climate.
“After Lloyds reported surging impairment charges on Wednesday, investors will be pleased by Barclays, as their credit impairment charges for Q2 were lighter than anticipated,” Fox noted. “This news is particularly encouraging amid concerns about the impact of higher mortgage rates on borrowers.
“The bank also outperformed with a group RoTE of 11.4% and a profit before tax of £2 billion, up from £1.5 billion in the previous year, but a slowdown from £2.6 billion in Q1.
“Looking ahead, Britain’s second largest lender foresees a net interest margin of 3.15% for the full year, down five basis points from previous estimates, while targeting a RoTE greater than 10%.”
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