Key facts
- Barclays' Q3 pre-tax profit of £2.3 billion missed internal consensus of £2.4 billion.
- Investment bank income was £3.1 billion, below the £3.3 billion forecast.
- Equities trading income surged 47% to £1 billion, driven by market volatility.
- Fixed income income fell 19% to just over £1 billion due to reduced client activity.
- Operating expenses totalled £4.6 billion.
- Structural Cost Actions amounted to £201 million.
Barclays missed profit expectations in the third quarter, posting £2.3 billion in pre-tax profit, a 12% year-on-year increase but below the £2.4 billion consensus. The bank's crucial investment bank division reported income of £3.1 billion, falling short of the £3.3 billion forecast, with only a 1% growth from the previous year.
Within the investment bank, equities trading surged 47% to £1 billion, boosted by market volatility linked to the US-Iran conflict. However, fixed income trading experienced a 19% decline to just over £1 billion, attributed to reduced client activity and macroeconomic headwinds. Operating expenses for the group totalled £4.6 billion, including £201 million for Structural Cost Actions aimed at reducing the cost base.
The results come ahead of Chancellor John Healey's upcoming Budget, where banks are anticipated to face increased taxation, potentially through a reversal of the banking surcharge cut implemented in 2023.