Barclays and HSBC buildings are seen amid the outbreak of the coronavirus disease (COVID-19), in London, Britain October 20, 2020.
Matthew Childs | Reuters
Barclays beat second-quarter profit expectations on Wednesday and boosted returns to shareholders, with its investment banking and equities businesses posting record incomes.
The British lender posted a quarterly attributable profit of GBP2.1 billion ($2.9 billion), up from GBP90 million for the second quarter of 2020. Analysts had expected net reported income of GBP1.7 billion for the three months until the end of June, according to Refinitiv data.
Equities and investment banking fees were up 38% and 27%, respectively, in the second quarter.
Barclays also announced increased capital distributions to shareholders, with a half-year dividend of 2 pence per share and a further share buyback of up to GBP500 million.
The bank has also seen a significant reduction in credit loss provisions, as outlined in its first-quarter earnings report.
Barclays shares are up by around 15% year-to-date, but were as much as 31% higher at the end of April.
Other highlights for the quarter:
Group revenues hit GBP5.4 billion, fractionally up from GBP5.34 billion a year ago.CET 1 ratio, a measure of bank solvency, came in at 15.1%, up from 14.2% a year ago.
Barclays has previously indicated that it expects costs to rise in 2021 compared to the previous year, due to coronavirus-related expenses, a real estate review, further structural cost action and pay increases.
Barclays beat second-quarter profit expectations on Wednesday and boosted returns to shareholders, with its investment banking and equities businesses posting record incomes.