Barclays quarterly profit up 12% as bank unveils £500m share buyback

what happened

Barclays said its pretax profit for July to September reached £2.3 billion, compared with £2.1 billion a year earlier, a 12% increase. That roughly matched the analyst consensus of £2.4 billion. The bank also announced a new share repurchase worth £500 million, or about $669.85 million.

Revenue at the investment bank came in at £3.1 billion, below the £3.3 billion forecast. Equities trading revenue climbed 47%, compared with an average 37% gain across the five largest US banks, according to Reuters calculations based on company statements. Fixed income trading, however, slid 19%, while US peers saw a drop of only 5%.

Barclays' report opens the earnings season for major European lenders. Reuters expects British bank results to be eclipsed by the budget that finance minister John Healey will present on October 28, which could bring additional levies on banks.

why it matters

For markets, two signals stand out: strong equities trading and weak bond-desk income at a British lender, plus the risk of new bank taxes that could weigh on UK financial stocks ahead of the October 28 budget.

market impact

UK banks and FTSE 100: strong results and buyback support the sector, while tax risk weighs on sentiment

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