Barclays profit hits record as bad debts released
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Barclays reported a record £6.9bn of profit for the first nine months of 2021 as the bank released bad debt provisions made earlier in the pandemic.
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Pretax profit for the three months to the end of September rose to £1.96bn from £1.15bn a year earlier as revenue increased to £5.47bn from £5.2bn. For the first nine months of 2021 profit was £6.9bn compared with £2.4bn a year earlier.
Barclays released a net £0.6bn of credit impairments in the first nine months of the year but set aside £120m in the third quarter compared with £608m a year earlier.
The corporate and investment bank's profit rose to £4.8bn in the first nine months of the year as revenue rose 1% to £9.7bn and the unit released £400m of provisions compared with a charge of £1.5bn a year earlier.
The group's common equity tier one capital ratio improved to 15.4% from 15.1% at the end of December and the bank said this augured well for returning cash to shareholders. The Barclays UK retail bank increased revenue by 2% to £4.8bn and released £306m of provisions compared with a charge of £1.3bn a year earlier.
Chief Executive Jes Staley said: "On top of a good first half, a strong third quarter performance means Barclays has delivered its highest Q3 YTD pre-tax profit on record in 2021, demonstrating the benefits of our diversified business model. While the CIB [corporate and investment bank] performance continues to be an area of strength for the group, we are also seeing evidence of a consumer recovery and the early signs of a more favourable rate environment.
"Our CET1 ratio of 15.4% means we are also in a strong position to balance this growth with a key priority of returning excess capital to shareholders."