Barclays Q3 Profit Rises 12%, Announces £500 Million Buyback

Barclays reported third-quarter pretax profit of £2.3 billion on October 22, up 12% year on year, and announced a £500 million share buyback, according to Economic Times Markets. The British lender's July–September profit compared with £2.1 billion a year earlier and was broadly in line with an average analyst forecast of £2.4 billion. Stable costs and steady investment banking income supported the result.

The investment bank earned £3.1 billion in total income, below the £3.3 billion analysts had expected, with sharply different results across its trading businesses. Equities trading revenue rose 47%, exceeding the average 37% increase at the five largest US investment banks, according to a Reuters calculation using company statements cited in the report. Fixed-income trading income, however, fell 19%, a steeper contraction than the US peer group's average decline of 5%. The report described equities as a relative strength across investment banks, while slower dealmaking and weaker fixed-income activity weighed on revenues.

The results open the earnings season for major European banks as investors also weigh the prospect of additional UK bank taxes. Britain's forthcoming budget is scheduled for October 28, the report said, with possible measures affecting lenders still an uncertainty rather than an announced tax change. Barclays' stronger equities performance and cost control helped support quarterly profit, but its weaker fixed-income showing leaves investors with an uneven picture of trading momentum.