A sign hangs above an entrance to a branch of Barclays Plc Bank in the City of London, UK
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LONDON – Barclays on Friday reported net income of £ 1.7 billion (US $ 2.37 billion) in the first quarter, helped by a decrease in loan impairment charges.
The UK bank said these fees fell “significantly” to £ 55 million in the first three months of the year, from £ 2.1 billion in the first quarter of 2020.
A recovery in equity trading and investment banking was also reported.
According to Refinitiv, analysts had expected net income of GBP 1.3 billion for the first three months of the year. The UK bank posted a net profit of £ 220m in the fourth quarter of 2020.
Further highlights of the quarter:
- Sales were £ 5.9 billion, compared to £ 6.3 billion in the previous year.
- The CET 1 ratio, a measure of the solvency of banks, was 14.6%, a decrease from 15.1% in the last quarter.
“While it will take some time to see momentum in the consumer business, particularly card balances, Barclays secured significant new growth opportunities in the first quarter (first quarter),” said Jes Staley, CEO of Barclays, in a statement.
“While signs of a recovery are encouraging, we have continued to be cautious about the business impact of the pandemic. We remain disciplined on costs and have a cost-to-income ratio of 61% for the quarter,” he added.
Barclays shares are up around 31% since the start of the year.
This is evolving news and will be updated shortly.