Barclays reported stronger-than-anticipated earnings on Wednesday, despite ongoing macroeconomic uncertainty and lingering concerns over Brexit.
The U.K.-based bank posted £1 billion ($1.29 billion) in net income for the three-month period ending Sept 30. Analysts at data firm Refinitiv had been expecting third-quarter net income to come in at around £723 million.
Here are the key takeaways:
- Third-quarter net income: £1 billion vs. £723 million expected by analysts at data firm Refinitiv.
- In an attempt to reduce annual funding costs, Barclays said it will redeem $2.65 billion worth of preference shares.
- The bank reported its core capital ratio stood at 13.2 percent at the end of the third quarter.
“In spite of macro-economic uncertainty, and particularly concerns over Brexit which weigh heavily on market sentiment, 2018 is proving to be a year of delivery on our strategy at Barclays,” Chief Executive Jes Staley said in a statement Wednesday.
“We remain focussed on generating improved returns, and on distributing a greater proportion of excess capital to shareholders over time,” Staley said.
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Earlier this year, Barclays posted its best quarterly earnings report in more than three years as the bank saw its pre-tax profits almost triple in the three months through to June 30.
The much-improved figures followed a challenging 18-month period for the U.K. lender.
The bank has struggled to shake off long-standing reputational issues after several years of scandal. The most recent of which cantered on allegations of unlawful whistle-blower mistreatment in early 2017.
The bank has reduced its staff members by 56,000, sold 22 business globally and closed its retail banking business across continental Africa in recent years.
It was also sued by the U.S. Department of Justice over its selling of toxic mortgage-backed securities ahead of the 2008 financial crisis — agreeing in March to pay $2 billion to settle the lawsuit.
Shares of the bank have fallen nearly 20 percent year-to-date.
