Barclays has announced a £500 million return to shareholders following a 12% increase in quarterly profits, reporting £2.3 billion in pre-tax profits for the period from July to September. This comes as the lender prepares for an anticipated rise in UK bank taxes in the upcoming budget.
Strong Quarterly Performance
The bank's chief executive, CS Venkatakrishnan, stated that the £500 million share buyback will bring the total amount returned to shareholders since January to £2.8 billion, which includes both buybacks and dividends. This announcement precedes the budget announcement by Chancellor John Healey, scheduled for 28 October, where a tax hike on banks is expected as the government seeks to raise revenue for cost of living support programs.
Key Financial Highlights
Barclays' robust performance was highlighted by a 6% increase in net interest income from its UK retail banking operations, totaling £2 billion. This figure has become a focal point for advocates pushing for a bank tax, as it reflects the earnings banks generate from loan charges after accounting for deposit payments. The rising interest rates, influenced by the ongoing Iran war, have contributed to increasing inflation expectations.
