Barclays profit jumps 23% in third quarter, beating expectations

LONDON — British bank Barclays on Thursday reported £1.6 billion ($2 billion) net profit attributable to shareholders for the third quarter, beating expectations.

The result compared with the £1.17 billion net profit forecast in an LSEG poll of analysts, and was 23% higher than the same period in 2023.

Revenue for the period came in at £6.5 billion, slightly ahead of a forecast of £6.39 billion.

Earlier this year the bank announced a strategic overhaul in an effort to cut costs, boost shareholder returns and stabilize its long-term financial performance, placing more focus on domestic lending while maintaining its more volatile investment banking unit. That strategy has included the acquisition of U.K. retail banking business Tesco Bank.

In the second quarter, Barclays net profit fell slightly year-on-year amid lower income at its U.K. consumer bank and corporate bank. Net profit meanwhile rose 10% to £3.02 billion at its investment bank.

Barclays shares have soared 55% in the year to date after dipping in 2023.

Several banks have announced plans to restructure, streamline operations and cut costs as they face a potential weakening of net interest margins as interest rates fall. HSBC earlier this week said it would consolidate its operations into four business units.

Deutsche Bank kicked off the third-quarter reporting season on Wednesday, posting higher-than-expected net profit as revenue at both its investment bank and asset management divisions jumped 11% year-on-year.

This a breaking news story, please refresh for updates.