- Barclays reported a first-half profit rise of 17%, beating analysts' forecasts, as it followed Wall Street peers in reaping bumper equities trading revenues and deal fees this year.
- The bank reported profit before tax for January-June of £6.1 billion on Tuesday, just above analysts' expectations of about £5.94 billion.
- It also announced a fresh share buyback of £1 billion, above forecasts for £831 million.
- Barclays revealed a 30% increase in its half-year bonus pool after a rise in profits.
- The bank put £1.3 billion towards its bonus pool for the first half of the year, up from £1 billion last year.
- The increase in the bonus pool follows a rise in pre-tax profits for the second quarter to £3.3 billion, up 31% on the year.
Barclays has reported a 17% increase in pre-tax profit for the first half of the year, reaching £6.1 billion, which is above analysts' expectations of approximately £5.94 billion. This growth is attributed to a significant boom in equities trading revenues and deal fees, mirroring trends seen among Wall Street peers.
In addition to the profit increase, Barclays announced a £1 billion share buyback, surpassing forecasts of £831 million. The bank also revealed a 30% rise in its half-year bonus pool, allocating £1.3 billion towards bonuses, up from £1 billion last year. This increase in bonuses follows a 31% rise in pre-tax profits for the second quarter, which totaled £3.3 billion.56
However, the news has drawn criticism. Paul Nowak, general secretary of the TUC, stated, “Big banks like Barclays are raking it in while working people and local businesses are struggling.” The tax burden on UK banks stands at 46.4% when considering employment taxes and VAT, significantly higher than 38.9% in Frankfurt and 27.9% in New York.
“The bank's profit before tax for January-June reached £6.1 billion, exceeding analysts' expectations of about £5.94 billion. Additionally, Barclays increased its half-year bonus pool to £1.3 billion, up from £1 billion last year, reflecting the strong performance in equities trading.”
The Guardian
