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Barclays has warned it might transfer to speed up its transformation programme within the UK earlier than the 12 months’s finish whereas reporting report group income for the primary 9 months of 2021.
It revealed that “structural price actions” had been on the way in which in its branch-based UK arm because the sector continues to shrink excessive avenue websites in favour of shifting clients in direction of on-line banking – a pattern aided by the COVID-19 pandemic.
The transfer follows a brand new spherical of department closures at rival Lloyds simply this week.
Barclays made the announcement whereas reporting year-to-date pre-tax income of £6.9bn – its finest ever efficiency for a nine-month interval.
It included a £2bn haul for the three months to 30 September – almost double the £1.1bn seen a 12 months in the past – and £400m increased than monetary analysts had been anticipating.
The efficiency throughout 2020 has been pushed by exercise at its funding banking arm which, like its US rivals, has reaped bumper charges from a surge in advisory mandates and equities buying and selling.
Income within the division had been 49% up at £4.8bn over the 9 months, Barclays mentioned.
The group’s backside line was additionally boosted by £622m of money – put aside final 12 months to deal with pandemic-related dangerous loans – which it had launched within the 12 months up to now regardless of persevering with pressures within the home and wider international economic system.
Barclays chief government Jes Staley mentioned: “Whereas the CIB (funding financial institution) efficiency continues to be an space of power for the group, we’re additionally seeing proof of a shopper restoration and the early indicators of a extra beneficial fee surroundings.”
The financial institution upgraded its financial forecasts for the UK and mentioned it anticipated the nation’s GDP to hit pre-pandemic ranges by early 2022.
However it warned that vital uncertainty remained on the trail forward and shares had been buying and selling barely decrease in early offers.
Zoe Gillespie, funding supervisor at Brewin Dolphin, mentioned: The financial institution nonetheless seems to be the most effective positioned amongst its friends, with publicity to markets past the UK and an providing that covers retail banking, enterprise lending, bank cards, and funding banking.
“A progressive dividend and applicable ranges of share buybacks might proceed to drive enthusiasm for its shares, that are comfortably up on the place they began the 12 months.”
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