Barclays nearly tripled its pretax profit, which was £659m during the same period last year, with the latest figures exceeding the bank’s predictions.

The bank’s chief executive, Jes Staley, said: “This first-half performance shows a bank beginning to demonstrate its true potential and value.

“The numbers we have posted strengthen our confidence that Barclays can deliver attractive and sustainable profits, and in our ability to return a greater proportion of those profits to shareholders over time.”

First-half underlying profits rose by 20 percent to £3.7bn, excluding litigation and conduct costs.

However, when accounting for charges, first-half profits fell 29 per cent to £1.66bn.

Barclays has announced a interim dividend of 2.5p per share for the first half of the year, with plans to pay a dividend of 6.5p per share for 2018.

The past 18 months have been challenging for the bank, with the US Department of Justice suing the UK lender for the mis-selling of residential mortgage-backed securities in the run-up to the financial crisis.

The bank eventually agreed to pay $2bn (£1.4bn) to settle the case.

Meanwhile, operating costs across Barclays Bank are down at 2.6 percent, with lower litigation and conduct charges assisting the bank in making a net profit of £1.2bn.

Mr Staley said: “This is really the first clean quarter since the turnround started a few years ago.

“So now we will just let this bank run for a while and generate the returns for our shareholders.”

Analysts praised the results including Naeem Aslam at Think Markets.

Mr Aslam told the Independent: “The most welcoming news for Barclays investors is in the company’s key metrics, the dramatic drop in the conduct charges.

“At last, the management has started to do what it is supposed to do and this has added a strong boost to the bottom line in the quarter.”

Earlier today, the Bank of England decided to raise interest rates for only the second time in a decade to 0.75 per cent.

The move is expected to be welcomed by savers.

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