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Barclays Bank Profits Rise Supported By Investment Banking

Barclays profits soar, boosted by investment banking, as the bank follows Wall Street rivals

Barclays reported earnings that beat analysts’ expectations after its Wall Street rivals got a boost from its investment banking division, with the British bank’s profit coming in at 1.45 billion pounds in the third quarter, easily beating analysts’ forecasts of just 931.25 million pounds, and the figures indicate a record increase in profits of about 611 million pounds compared to the same quarter last year.

The Barclays Division of Banking and Institutional Investments had the best year-to-date performance in its third quarter, given the bank’s income from fees and equity trading, which increased the bank’s return on tangible equity, which is a key ratio in evaluating earnings.

Investment banking fee income increased by 37% to reach GBP 2.7 billion supported by the strong performance in the equity and advisory markets, which was reflected in the bank’s higher fee income and its acquisition of a larger market share, as the bank’s equity income grew by 28% to £2.47 billion on the back of strong client activity and a rally in their balance sheets following a fiery IPO season.

All of Barclays’ Wall Street competitors beat analysts’ expectations this quarter due to the strength of their investment banking divisions and the release of some of their buffer stocks, including Goldman Sachs, Wells Fargo, Citigroup, Bank of America, Morgan Stanley and JPMorgan. Read more [Morgan Stanley Releases Results That Exceed Expectations] and [Bank of America Exceeds Asset Management Result Expectations].

The BOE also released 622 million pounds of loan-loss reserve during the quarter, compared to 608 million it held in the third quarter of 2020.

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