Yahoo Finance FTSE 100: Barclays announces share buybacks as profits jump on interest rate rises
Banking giant Barclays (BARC.L) posted a first-half profit that was in line with expectations on Thursday, coming in at £4.6bn ($5.95bn). The average analyst forecast came in at £4.5bn.
In the same quarter a year ago pre-tax profits were sitting at £3.7bn.
It announced a share buyback of £750m for Q2 – a number which beat analyst expectations of £575m.
Its consumer and credit card business propped up numbers as it battles with dipping revenues in its investment bank during a down period for corporate dealmaking.
Personal Banking income increased 19% to £2.5bn, driven by higher interest rates, partially offset by factors it called "mortgage margin compression and lower current accounts deposit volumes in line with wider market trends and cost of living pressures."
Similarly to Lloyds Bank (LLOY.L), which reported on Wednesday, it upped the amount reserved for bad loans. It reserved £896m in the first half — double that of the £341m last year.
“We have positioned Barclays carefully for this mixed macroeconomic environment and delivered a consistent performance in the second quarter," said CEO C. S. Venkatakrishnan.
Read more: Car insurance firms falling short of consumer duty standards
The report follows a strong first quarter in which the UK-based bank beat analyst expectations. It reported a net profit of £1.78bn ($2.2bn).
Watch: Barclays Bankers Turn Cautious on Adani
Download the Yahoo Finance app, available for Apple and Android.
