Barclays Q1 2023 earnings comfortably beat analyst forecasts with group attributable profit of £1.8bn up 27% y-o-y. Moreover, all operating divisions deliver double-digit returns.
Group income of £7.2bn is up by 11% year-on-year. Barclays UK income rises by 19%. This is primarily driven by net interest income growth from higher rates and continued structural hedge income momentum. Barclays reports a first quarter net interest margin (NIM) of 3.18%. up by 56 basis points from the year ago quarter.
Go deeper with GlobalData
Barclays Q1 2023 highlights
Barclays UK delivered a RoTE of 20.0%. This is supported by higher interest rates and the continued investment in its transformation into a next-generation, digitised consumer bank.
Profit before tax rises by 27% y-o-y to £754m with a RoTE of 20.0% (Q122: 15.6%). Total income is up by 19% to £1.96bn. Net interest income rises by 21% to £1.62bn with a NIM of 3.18% (Q122: 2.62%). Net fee, commission and other income rises by 11% to £343m partially driven by transactional income in Business Banking and UK cards. Personal Banking income increases by 23% to £1.25bn driven by higher interest rates, partially offset by mortgage margin compression. On the other hand, Barclaycard Consumer UK income falls by 11% y-o-y to £247m. Higher customer spend volumes were more than offset by lower interest earning lending balances following repayments and ongoing prudent risk management. Barclays cost-income ratio improves by 6 percentage points from the year ago quarter, from 63% to 57%.
Private banking income up by 21%
Private Bank income up 21% reflecting client balance growth and improved margins. Payments income is up by 10% driven by merchant acquiring turnover growth. Customer deposits at amortised cost decrease by 1% in the quarter to £254.3bn. Increases in savings product balances are more than offset by reduced current account and business banking deposits, reflecting broader market trends. The loan: deposit ratio remains at 90% (Dec-22: 87%).
Barclays share price is up by 2.5% on release of the results but down by 3% for the year to date.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
