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Barclays profits up 19% year-on-year

Barclays has reported a pre-tax profit of £5.07bn for the first nine months of 2011, up 19 per cent on the profit of £4.3bn reported for the same period in 2010.

In an interim management statement published today, the bank revealed its pre-tax profit before debt valuation adjustments for Q3 was £1.3bn, down from £1.7bn in the previous quarter but up 5 per cent from £1.27bn in Q3 2010.

The UK business saw a 6 per cent increase in income net of insurance claims, from £3.3bn for the first nine months of 2010 to £3.5bn for the first nine months of 2011.

The bank says this reflects strong growth in mortgages and personal savings, partially offset by a reduction in income following the closure of its branch-based financial planning business.

The statement does not include any specific figures for UK mortgage lending.

Barclays says it continues to manage closely its exposure to the eurozone, and that the group’s sovereign exposure to Spain, Italy, Portugal, Ireland and Greece reduced by 31 per cent to £8bn in Q3.

Bob Diamond, chief executive of Barclays, says: “I am pleased with the performance we have delivered for the first nine months of the year, with profit before tax exceeding £5bn, despite significant economic and market headwinds.

“These results demonstrate the continued progress towards our 2013 goals through building momentum across retail and corporate banking businesses and strong relative performance by Barclays Capital in difficult market conditions.

“Our focus on cost reduction continues to deliver results and we are confident that we will exceed the £1bn savings target we set earlier this year.”

He adds that the bank remains committed to UK lending and is on track to exceed its Merlin goals.

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