Barclays today reported profits of £5 billion pounds for the six months ending June 30, driven by a strong performance in its investment banking business and the release of cash set aside at the height of Covid-19 to cover bad loans. The profit was above the £4.1 billion forecast by analysts.
It said it would resume dividend payments, with an interim 2p-a-share payout and announced plans for a £500 million share buyback programme.
Tom Johannessen, Managing Director at professional services firm Alvarez & Marsal, commented: “Barclays continues to build momentum with stronger results, in line with the improved economic backdrop and receding impact of the pandemic. It has shown how crucial diversification is – the combination of a strong UK retail and corporate banking franchise with an international investment banking operation has proved a recipe for success. The strategy provides a route to exceeding Barclays cost of equity and is a strong testament to the path chosen by the management team.”
“There are areas where there is room for improvement – sustainability and overall ESG are key areas for further focus going forward.”