Barclays reported a 32% rise in investment banking profits for the third quarter of 2024, fueled by a rebound in dealmaking and a surge in equity trading. The bank’s corporate and investment bank division generated pre-tax profit of £1.1 billion, up from £834 million in the same period last year, according to its earnings statement released on Thursday.
Strong Performance in Advisory and Equity Trading
The bank’s advisory fees rose 18% to £345 million, reflecting increased merger and acquisition activity. Equity trading revenues climbed 24% to £542 million, driven by higher client activity and market volatility. Fixed-income, currencies and commodities trading, however, fell 12% to £1.2 billion, partly offsetting gains.
“We continue to see positive momentum in our investment bank, particularly in advisory and equities,” said Barclays CEO C.S. Venkatakrishnan. “Our strategy to focus on areas of strength is delivering results.”
Overall Group Results
Group-wide, Barclays posted a pre-tax profit of £2.2 billion for the quarter, up 8% from £2.0 billion a year earlier. Total income rose 5% to £6.5 billion, supported by higher net interest income in its UK consumer bank. The bank also set aside £300 million for potential loan losses, down from £400 million in the prior quarter.
Barclays’ common equity tier 1 ratio, a key measure of financial strength, stood at 13.8%, above its 13-14% target range. The bank announced a dividend of 2.7 pence per share, unchanged from the previous quarter.
Outlook and Strategy
Barclays reiterated its full-year guidance, targeting a return on tangible equity above 10% for 2024. The bank has been streamlining its investment bank, cutting costs and exiting certain businesses to improve profitability. “We are making good progress on our cost-saving initiatives and remain confident in our ability to deliver sustainable returns,” Venkatakrishnan added.
