Barclays Exceeds 3Q Market Expectations Despite Impairment Charge
October 23 2020 - 2:52AM
Dow Jones News
By Sabela Ojea
Barclays PLC on Friday reported third-quarter total income, net
profit and pretax profit that were higher than the market expected
despite booking a considerable amount of provisions.
The FTSE-100-listed lender posted pretax profit of 1.15 billion
pounds ($1.50 billion) compared with GBP246 million for the same
period a year earlier. Pretax profit was expected to rise to GBP507
million, according to the bank's own compilation of consensus.
The U.K. bank had a credit impairment charge of GBP608 million,
down from forecasts of GBP1 million, taken from Barclays's
consensus. The lender said that it expects to book a second-half
impairment charge materially below the one booked in the first
half, noting that it is likely that the impairment charges for 2021
will be below those of 2020.
Net profit for the quarter rose to GBP611 million from a loss of
GBP292 million for the third quarter of 2019. Net profit was
expected at GBP201 million, according to the bank's compilation of
consensus.
Total income, on the other hand, also increased to GBP5.20
billion from GBP5.54 billion for the year-earlier period. It was
anticipated to decline to GBP4.85 billion, taken from the bank's
compilation of forecasts.
The bank ended the period with a common equity Tier 1 ratio--a
key measure of balance-sheet strength--of 14.6%, up from 13.8% as
at Dec. 2019.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
October 23, 2020 02:37 ET (06:37 GMT)
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