By Sabela Ojea
Barclays PLC on Friday reported third-quarter total income, net profit and pretax profit that were higher than the market expected despite booking a considerable amount of provisions.
The FTSE-100-listed lender posted pretax profit of 1.15 billion pounds ($1.50 billion) compared with GBP246 million for the same period a year earlier. Pretax profit was expected to rise to GBP507 million, according to the bank's own compilation of consensus.
The U.K. bank had a credit impairment charge of GBP608 million, down from forecasts of GBP1 million, taken from Barclays's consensus. The lender said that it expects to book a second-half impairment charge materially below the one booked in the first half, noting that it is likely that the impairment charges for 2021 will be below those of 2020.
Net profit for the quarter rose to GBP611 million from a loss of GBP292 million for the third quarter of 2019. Net profit was expected at GBP201 million, according to the bank's compilation of consensus.
Total income, on the other hand, also increased to GBP5.20 billion from GBP5.54 billion for the year-earlier period. It was anticipated to decline to GBP4.85 billion, taken from the bank's compilation of forecasts.
The bank ended the period with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 14.6%, up from 13.8% as at Dec. 2019.
Write to Sabela Ojea at email@example.com; @sabelaojeaguix