British bank Barclays reported a 23% increase in net profit for the third quarter (Q3), reaching nearly £1.6 billion ($2.1 billion), driven by strong performance in its UK and investment banking divisions along with cost-cutting measures.
CEO C.S. Venkatakrishnan emphasised the bank’s focus on maintaining cost discipline and strong capital reserves.
Earlier this year, Barclays announced a plan to cut £2 billion in costs over the coming years, which included the elimination of 5,000 jobs in 2023.
The bank is also set to finalise its acquisition of Tesco Bank next week as part of its investment strategy in the UK.
Barclays’ UK division saw a 17% profit increase, while the investment banking unit rose by 12%. Following the earnings update, Barclays’ shares rose by 3.6%.
Richard Hunter, head of markets at Interactive Investor, highlighted the strength of the bank’s diversified business model.
Barclays is the second of the UK’s major banks to report its earnings this season, following Lloyds Banking Group, which recently announced a profit decline due to falling interest rates and rising costs.
