Barclays posts highest quarterly profit in 13 years Yorkshire News

The bosses said pre-tax earnings of £ 2.4bn for the first three months of the year were due to strong growth in its corporate and investment banking division and an improved mortgage portfolio.

The bank’s Main Street division had a mixed period as recent closings reduced consumer spending, but the stamp duty holiday continued to help the housing market and its mortgage division.

Impairment charges (money set aside in the event of loan default) also fell significantly as the economy improved and the post-pandemic outlook appeared more stable compared to a year ago.

Charges for the quarter were just £ 100 million compared to £ 2.1 billion a year ago, although, unlike rivals NatWest and Lloyds, Barclays said it would not publish the provisions yet.

Chief Executive Officer Jes Staley said: “Since the early days of the pandemic last year, our diversified business has demonstrated fundamental resilience in ensuring the financial integrity of Barclays.”

He noted that the corporate and investment bank (CIB) had a particularly strong quarter, with revenue of £ 3.6bn, and return on tangible equity (RoTE), the bank’s preferred measure, was 17.9%.

Mr. Staley added that CIB’s growth “partially offset the challenges in our consumer businesses that have been affected by lower levels of spending and activity as a result of the pandemic.”

Barclays UK posted revenue of £ 1.6bn, down 8%, as savings and spending during the lockdown slowed, although its mortgages grew £ 3.6bn to £ 151.9bn

Staley added: “As we enter the next phase of this pandemic, we remain steadfast in our commitment to support the economic recovery.

“From our spending data, which captures UK economic activity through our cards and business acquisitions, we are already seeing encouraging early signs of recovery in some sectors, including those hardest hit by the crisis.”

A financial partnership with Amazon, first launched in Germany, will also extend to the UK.