Barclays Beats Forecast on Trading Boom, but Bad Loan Charges Rise
LONDON—Barclays beat forecasts with a small rise in third-quarter profit on Wednesday lifted by a record performance in fixed income trading, but costs and loan charges crept higher in a sign of ongoing challenges.
The British bank made a profit before tax of 2 billion pounds ($2.3 billion) in July–September, up from 1.9 billion a year ago and above analyst forecasts.
However, a hefty charge for potentially soured loans—topping up its provisions for the year to 722 million pounds—highlighted the tough outlook as a worsening cost of living crisis squeezes borrowers.
Barclays shares opened slightly higher, but were last down 1 percent at 0833 GMT in a broadly flat FTSE index, as investors took in the rise in credit losses and adjusted costs 4 percent higher than expected….