Barclays became the first major UK bank to report third-quarter results today: group profit before tax for the first nine months was £2.4bn, with the group remaining profitable in each quarter so far.
Barclays UK also returned to profitability in the third quarter, with profit before tax of £196m, as economic activity recovered from the spring low point and impairment charges reduced.
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For the first nine months Barclays UK delivered profit before tax of £264m. Income headwinds in Barclays UK are expected to persist into 2021 including the low interest rate environment.
Impairment charges now total £4.3bn, with an additional £608m taken in Q320, a figure down 63% on the previous quarter.
“We expect the impairment charge in the second half of the year to be materially lower than the first half,” group CEO Jes Staley wrote in his review. Officer
Providing continuing support amid Covid
“In this historically challenging year for our customers and clients we have continued to provide huge support to help people through the social and economic impact of the COVID-19 pandemic,” Staley wrote.
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By GlobalDataGlobally, Barclays has provided over 640,000 payment holidays to customers. This is in addition to some £100m of income foregone in the form of waived overdraft interest and banking charges for UK customers and business banking clients.
The bank has now delivered some £25bn through the government support measures to UK businesses.
This includes 296,000 Bounce Back Loans totalling £9.2bn, around £3bn under the CBILS programmes, and £12.4bn through the Covid Corporate Financing Facility.
Resilience based on diversification
In addition, it has helped businesses and institutions to access global capital markets, including underwriting over £1tn of new issuance in Q220 and Q320.
This support is made partly possible because Barclays has a resilient and diversified business model which means the bank remains profitable as it weathers this crisis.
Barclays’ strong income performance in its corporate and investment banking more than offsets headwinds in consumer businesses.
