Good touch

25 October 2019 By Christopher Thompson Follow @CGAThompson

The UK bank reported a 10% return on equity in the third quarter, excluding one-off costs, helped by its investment bank. Traders at the $37 bln lender broadly underperformed Wall Street competitors, but boss Jes Staley can at least grab market from sickly European rivals.

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Barclays on Oct. 25 reported an 83% year-on-year decline in third-quarter pre-tax profit to 246 million pounds, due largely to one-off expenses, including a 1.4 billion pound provision for miss-sold insurance claims. Excluding litigation and conduct charges, pre-tax profit rose 16% year-on-year to 1.8 billion pounds.

The corporate and investment bank reported a 77% year-on-year uplift in quarterly pre-tax profit to 882 million pounds. Revenue rose by 17% to 2.6 billion pounds.

Barclays reported a common equity Tier 1 capital ratio of 13.4% at the end of the third quarter, unchanged from the previous three months. Chief Executive Jes Staley added that a CET1 target of 13% had been revised upwards to 13.5% after the lender’s reporting of risk-weighted assets were brought more in line with UK peers.

The London-based lender reported an annualised return on tangible equity of minus 2.4% for the quarter, compared to 9.4% for the same period during 2018. Excluding exceptional charges, the group reported a 10.2% ROTE, unchanged from last year.

Barclays shares rose 3% to 171 pence by 0724 GMT on Oct. 25.

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