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Barclays PLC’s third-quarter revenue fell short of estimates, though its profit topped consensus, despite a rise in provisions, numbers on Tuesday showed. The lender cut its margin outlook at its UK arm but maintained its return on tangible equity outlook at group level. Barclays shares slumped 5.9% to 135.50 pence each in London on Tuesday morning following the announcement. For the quarter that ended September 30, total income rose 5.2% on-year to £6.26 billion from £5.95 billion a year prior. Total income fell short of the £6.29 billion company-compiled consensus. Barclays reported pretax profit of £1.89 billion for the quarter, down 4.3% on-year from £1.97 billion. However, it beat the company-compiled market consensus of £1.77 billion. Hurting profit, credit impairment charges were increased by 14% to £433 million from £381 million a year earlier. Barclays UK total income amounted to £1.87 billion in the third-quarter, down 2.2% on-year. Barclays International revenue was 9.3% higher at £4.44 billion from £4.07 billion. Looking ahead, Barclays backed its annual return on tangible equity forecast of ‘greater than 10%’. However, it trimmed UK net interest margin guidance. It now expects this to land around ‘3.05% to 3.10% in 2023’. ‘Guidance is sensitive to the level and mix of deposit balances and further changes in expectations for interest rates,’ it added. It had previously predicted a UK net interest margin of ‘less than 3.20% with a current view of around 3.15%’. Barclays did not declare any new shareholder distributions. ‘Barclays is committed to maintaining a balance between a strong capital position, delivering total cash returns to shareholders and investment in the business. Barclays pays a progressive ordinary dividend, taking into account these objectives and the earnings outlook of the group. The board will also continue to supplement the ordinary dividend as appropriate, including with share buybacks,’ it said. Barclays also on Tuesday said it completed the £750 million share buyback it had announced in July. It bought 493.6 million shares in total at an average price of 151.94p. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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