Barclays PLC (LSE:BARC) has reported third-quarter pre-tax profits of £2bn, better than expected, driven by a 17% increase in income from its UK business and market volatility for its fixed income, currency and commodity (FICC) trading arm.
The bank's attributable profit was £1.5bn compared to £1.4bn last year, while return on total equity (ROTE) improved to 12.5% from 11.4%.
The FTSE 100-listed lender said group income rose by 9% to £6.0bn which included a near £1bn charge related to a July error with the over-issuance of several billion of securities sold in breach of US regulations.
Bad debt provisions of £0.4bn were also made, up from £0.1bn last year reflecting the “deteriorating macroeconomic forecast” but the banking giant said business failures remain below historical levels.
Total group operating expenses were £3.6bn, unchanged from last year, which includes a provision reduction of £0.5bn in relation to the over-issuance of securities (Q321: £0.1bn charge).
The bank’s common equity Tier 1 ratio of 13.8% is in line with the bank’s targeted range of 13-14%.
Barclays said it was targeting a RoTE of greater than 10% in 2022.
Costs for the full year are expected to remain at previous guidance of £16.7bn with a reduction in litigation charges offset by forex headwinds, it added.
In the results statement, C S Venkatakrishnan, Barclays group chief executive, said: "We delivered another quarter of strong returns, and achieved income growth in each of our three businesses, with a 17% increase in Group income.
“We are ready to provide support for customers and clients facing an uncertain economic environment and higher cost pressures.”