An indication hangs above an entrance to a department of Barclays Plc financial institution within the Metropolis of London, U.Ok.
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LONDON — Barclays on Friday reported first-quarter web revenue of £1.7 billion ($2.37 billion), helped by a fall in mortgage impairment expenses.
The British financial institution mentioned these expenses had fallen “considerably” within the first three months of the 12 months to beneath £100 million — down from £2.1 billion within the first quarter of 2020.
It additionally reported a rebound in fairness buying and selling and funding banking.
Analysts had anticipated web revenue to return in at £1.3 billion for the primary three months of the 12 months, in line with Refinitiv. The British financial institution posted web revenue of £220 million for the fourth quarter of 2020.
Different highlights for the quarter:
- Revenues hit £5.9 billion, down from £6.3 billion a 12 months in the past.
- Credit score impairment expenses had been £55 million, down from £2.1 billion a 12 months in the past.
- CET 1 ratio, a measure of financial institution solvency, got here in at 14.6%, a fall from 15.1% final quarter.
“Whereas momentum within the shopper companies, significantly card balances, will take time to construct, Barclays secured vital new development alternatives in Q1 (first quarter),” Jes Staley, CEO of Barclays mentioned in a press release.
“Whereas proof of restoration is encouraging, we’ve continued to take a cautious view of the affect of the pandemic on the enterprise. We stay disciplined on prices, with a price to revenue ratio of 61% this quarter,” he added.
Shares of Barclays are up about 31% because the begin of the 12 months.
It is a growing information story and will likely be up to date shortly.