Barclays announces share buyback as second-quarter profit meets target

Barclays reported a net income of £1.3 billion ($1.68 billion) for the second quarter, in line with expectations, despite slower momentum in investment banking.

Analysts were expecting a net income of £1.4 billion for the quarter, according to Refinitiv. The bank previously reported a net profit of £1.78 billion in the first quarter of the year.

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The second-quarter performance was supported by the domestic division and by the consumer and cards arm. Both saw revenues higher in the quarter, up by 14$ and 18%, respectively.

On the downside, investment banking revenues dropped by 3% on the back of lower client activity.

C. S. Venkatakrishnan, group chief executive, said in a statement: “We have positioned Barclays carefully for this mixed macroeconomic environment and delivered a consistent performance in the second quarter.”

“Looking forward we are very confident of meeting our targets for the full year,” he added.

The Barclays team also announced plans for a share buyback of up to £750 million.

Here are other highlights for the quarter:

• Total revenues reached £6.3 billion, down 6% from the £6.7 billion reported in June 2022, which included a £758 million impact of over issuance.
• CET1 ratio, a measure of bank solvency, stood at 13.8%, up from 13.6% from the previous quarter.
• Operating costs dropped 6% from a year ago.

Barclays shares are up by about 1.5% year to date.