Barclays Q3 profit rises 12%, announces £500 million buyback

Barclays Q3 Profit Climbs 12% and Launches £500 Million Share Buyback

Barclays Reports Strong Third Quarter Financial Results

By Lawrence White

Profit Growth and Share Buyback Announcement

LONDON, Oct 22 (Reuters) - Barclays said its third-quarter profit rose 12% on Thursday, as it reported steady investment banking income and stable costs that allowed the bank to announce a new share buyback worth £500 million ($669.85 million).

Pretax Profit and Analyst Expectations

The British lender reported pretax profit for the July to September period of £2.3 billion, up from £2.1 billion a year ago and just in line with the average of analysts' forecasts of £2.4 billion.

Context: European Banking Sector and Upcoming Budget

Barclays' solid results kick off the earnings season for major European lenders, with British banks' results likely to be overshadowed by finance minister John Healey's first budget on October 28, where further taxes on banks may be levied.

Investment Banking Performance

Income and Revenue Breakdown

Barclays' investment bank reported total income in the third quarter of £3.1 billion, lower than forecasts for £3.3 billion.

Comparison with Wall Street Rivals

Third quarter earnings from Barclays' Wall Street rivals earlier this month showed the cyclical nature of investment bank revenues, as dealmaking slowed and fixed income desks underperformed, with only equities trading sustaining the strong momentum seen in the first half of the year. 

Equities and Fixed Income Trading Results

Barclays' equities revenues rose 47%, outperforming the average 37% gain across the top five US players according to a Reuters calculation from company statements.

The British lender, however, saw income from fixed income trading slide 19%, worse than a 5% drop among its US peers.

Additional Information

($1 = 0.7464 pounds)

(Reporting by Lawrence White; Editing by Tommy Reggiori Wilkes)