Barclays has revealed its earnings jumped by nearly a fifth in recent months, as the investment banking unit cashed in on an increase in dealmaking amid continued cost-cutting.
The bank reported a pre-tax profit of £2.2 billion between July and September, nearly a fifth more than the £1.9 billion made this time last year.
This beats forecasts, with analysts previously pencilling in a third-quarter profit of about £2 billion.
We continue to be focused on disciplined execution of our three-year plan and are encouraged with progress to date
CS Venkatakrishnan, Barclays
Barclays said it generated more income than last year, with a 13% increase within its investment banking division amid more dealmaking among global firms and boosted equity trading.
The bank also continued its cost-cutting drive, with £300 million of savings made over the latest period.
CS Venkatakrishnan, Barclays’ group chief executive, said: “We continue to be focused on disciplined execution of our three-year plan and are encouraged with progress to date.”
But he said there was “more work to do”, with the bank targeting about £1 billion worth of cost-savings this year.
Barclays also said it was expecting to bring in more income for the year than it previously thought, with the bank in the middle of a major strategy plan that is set to see more money returned to shareholders.
Meanwhile, the lender’s acquisition of Tesco Bank, announced at the beginning of the year, is expected to have completed by November, it said.