Barclays Group  

Barclays reports £1bn profit in Q1

Barclays reports £1bn profit in Q1

Barclays has reported £1bn of net profit in the first quarter of 2019.

 

The group's profit before tax was £1.5bn compared to a loss of £236m in the same period last year.

The bank's income was down 2 per cent on the previous year, but operating expenses were reduced by 3 per cent.

The company fared better in the British market and Barclays UK profit rose to £600m in the first three months of 2019 — a 1 per cent increase.

Barclays UK said its operating expenses had fallen and continuing margin pressures in the mortgage market were offset by sustainable growth in consumers taking out mortgages and placing deposits.

Competitive mortgage margins and a focus on secured lending saw the group’s net interest margin fall by  two basis points to 3.18 per cent in Q1.

Within Barclays International, the company’s profit before tax fell by 20 per cent to £1.1bn.

Jes Staley, chief executive of Barclays, said: "Barclays UK produced a strong return on tangible equity of 16.4 per cent, excluding litigation and conduct - an improvement on an increased equity base compared to Q1 of 2018, which included a 12 per cent increase in business banking income.

"What you see in the first quarter is Barclays using this discretion around variable compensation to manage our costs and deliver expected profitability.

"A 9.6 per cent return on tangible equity, excluding litigation and conduct, in the first quarter of this year is a good step towards our objective of delivering a returns of greater than 9 per cent in 2019 and greater than 10 per cent in 2020."

imogen.tew@ft.com