Barclays on Thursday reported a better-than-expected first-quarter profit of 2.6 billion pounds ($3.24 billion) after a strong performance in its credit card business offset pressure on other arms, including investment banking.
The British bank’s 16 percent year-on-year profit beat analysts’ forecasts of 2.2 billion pounds. Reuters reports that the results underscored growing ties with the U.S., where the bank has increased its investment business.
In recent weeks, Citigroup and American Express have also seen higher income from credit card spending but have had to set aside larger sums to cover potential defaults.
JPMorgan analysts said the Barclays numbers could lead to an improvement in the bank’s full-year profit forecast. The bank’s shares rose four percent in early morning trading, outpacing a 0.8 percent gain in the STOXX index of European banks.
Revenue at Barclays’ consumer, cards, and payments division rose 47 percent to £1.3bn thanks to rising credit card balances.
The bank’s bad loan provision for the quarter rose to £524m from £141m a year earlier, which the bank largely blamed on its U.S. card business.
Barclays CFO Anna Cross told reporters that the bad credit charge reflected higher card balances and a “normalisation” of consumer behavior, adding that the figure was still below pre-Covid-19 levels.
Investment banking, a source of strength in recent quarters, delivered mixed results this time, with revenue from its global markets business falling eight percent and fees from advising on corporate mergers and fundraising down seven percent.
Barclays will invest £500 million in “green” startups by 2027
British multinational bank Barclays plans to invest 500 million pounds ($619 million) in startups with businesses focused on climate change by 2027 as part of a plan to invest a trillion dollars in the green economy by the end of the decade.
The bank said the increase in sustainable capital, which will reach £175m by 2025, reflects the finances needed to continue existing efforts and support new investments. Investments will be focused on carbon capture and hydrogen technology, writes Bloomberg.
Barclays has invested £84 million in sustainable startups over the past two and a half years. The lender announced that the priority is to support clients during the transition to a low-carbon economy.
