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Barclays Third-Quarter Profit Beats Expectations, Helped By Lower Provisions

Barclays reported profit before tax of 1.1 billion pounds ($1.44 billion) for the July-September period, double the 507 million pounds average of analysts' forecasts.

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Barclays reported much better than expected third quarter earnings on Friday, as its consumer businesses swung back to profit and provisions against bad loans fell compared with the previous quarter.

Barclays reported profit before tax of 1.1 billion pounds ($1.44 billion) for the July-September period, double the 507 million pounds average of analysts' forecasts.

The British lender booked credit impairment and provision charges for the quarter of 608 million pounds, well below the 1 billion pounds analysts had expected.

However Barclays warned it is considering further cost-cutting measures, which could result in fresh charges although it has not decided on the scale or timing of these.

Barclays is the first major British bank to report third quarter earnings, with analysts and investors watching closely for signs of the expected wave of bad loans linked to the pandemic.

HSBC is next on Tuesday, with Standard Chartered and Lloyds Banking Group set to follow on Thursday and NatWest Group on Friday.

Barclays said its consumer, cards and payments business swung back to a profit of 165 million pounds, after a loss in the second quarter, as U.S. credit card spending recovered.

The combined effect of these better-than-expected results drove the bank's core capital ratio, a key measure of financial strength, to 14.6% against expectations of 14%.

(Reuters)


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