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By Elena Vardon
Barclays reported its third-quarter results on Tuesday and updated parts of its 2023 guidance. Here’s what you need to know:
PRETAX PROFIT: The U.K. bank posted pretax profit for the three months to Sept. 30 of 1.885 billion pounds ($2.31 billion), compared with company-compiled consensus of GBP1.77 billion based on 10 analysts’ estimates and against the GBP1.97 billion reported in the same quarter the previous year.
TOTAL INCOME: Barclays’s total income for the quarter was GBP6.26 billion, behind expectations of GBP6.29 billion taken from the same consensus and ahead of GBP5.95 billion posted for the same three-month period of 2022.
WHAT WE WATCHED:
–CIB INCOME: Income from its international division’s corporate and investment bank, or CIB, was GBP3.08 billion, missing consensus of GBP3.13 billion but beating last year’s GBP2.82 billion.
–U.K. NET INTEREST MARGIN: The lender reported a 3.04% net interest margin for Barclays UK, lower than its second-quarter margin of 3.22%. It trimmed its 2023 guidance for the figure again, and now expects it to come in between 3.05% and 3.10%, compared with its previous target of no more than 3.20%, with a view of around 3.15%.
–IMPAIRMENTS: Credit impairment charges for the quarter were GBP433 million, lighter than the GBP570 million charge for potential bad loans that consensus had penciled in.
–OUTLOOK: The bank said it could potentially book one-off material costs in the fourth-quarter from measures aimed at cutting structural costs, which it expects to help drive future returns. An update on cost efficiencies, disciplined capital allocation and revised financial targets will be set out at the full-year results in February, it added.
Write to Elena Vardon at [email protected]
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