Banking giant Barclays has revealed half-year profits jumped by nearly a quarter as an investment banking boost helped offset more than £1 billion set aside for bad debts. The high street lender reported a 23% rise in pre-tax profits to £5.2 billion for the six months to June 30.
The bank booked credit impairment charges of £1.1 billion, up from £897 million a year earlier, after putting by another £469 million in the second quarter. Barclays said the rise was largely due to its takeover of Tesco Bank and a more uncertain economic outlook, especially in the US.
Investment banking drives results
The results were better than expected for the second quarter, with profits up 28% to £2.5 billion thanks to forecast beating revenues in its investment banking arm amid market volatility. The strong performance in investment banking helped cushion the impact of increased provisions for potential loan losses.
Group chief executive CS Venkatakrishnan, who is also known as Venkat, said: "We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors." The bank's performance demonstrates resilience despite challenging economic conditions.
Returns for shareholders announced
Barclays unveiled more returns for investors, with plans for another £1 billion in share buybacks. The bank also said it has cut around £350 million of costs out of the £500 million in savings planned for 2025, showing progress on its efficiency targets.
The strong results reflect the bank's ability to navigate market volatility whilst managing increased credit risks from economic uncertainty. The combination of investment banking strength and cost reduction efforts has helped deliver robust returns for shareholders.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
