Barclays’s Personal and Corporate Banking unit has reported pre-tax profit of £2.26bn for the nine months period ended 30 September 2014, up 18% compared to £1.91bn a year ago.
The unit’s total income increased 1% to £6.59bn driven by improved savings margins and mortgage income growth, partially offset by lower fee income.
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Net interest margin improved by 8bps to 2.99% driven primarily by savings in personal banking partially offset by lower corporate banking lending margins.
Credit impairment charges improved 21% to £359m due to the improving economic en vironment in the UK. Corporate banking benefitted from higher levels of provision releases and recoveries in the UK, the banking giant said in a statement.
Total operating expenses reduced 6% to £3.99bn reflecting benefits from Transform programmes, including headcount reductions, partially offset by increased costs to achieve Transform of £205m (2013: £165m).
Also, Barclays has set aside £500m ($800 million) in the third quarter to cover potential fines for rigging currency markets.
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