Barclays profit before tax rose 16% in the first quarter compared to a year ago with both their UK and international businesses generating higher income.
However, unlike previous quarters, it was Barclays consumer-facing business doing the heavy lifting while corporate and investment banking activity was largely flat.
Barclays UK saw income rise 19% to £1.96bn. Higher interest rates helped net interest income rise 21% to £1,618m with a net interest margin (NIM) of 3.18%.
Barclays International increased £5,282m in Q1 2023 from £4,824m in the same period. Corporate and Investment Banking (CIB) was flat but their consumer business saw significant growth.
“Barclays has posted a very solid first quarter, comfortably beating market consensus on profit amidst a turbulent time for the broader banking sector,” said Matt Britzman, equity analyst at Hargreaves Lansdown.
Britz continued to note Barclays, like Standard Chartered yesterday, has appeared to avoid much of the negativity related to the US banking crisis.
“It’s still early doors for the major UK banks reporting cycle, but signs look promising that issues over the pond aren’t leaking into the wider ecosystem. Credit card defaults in the UK remain below pre-pandemic levels, highlighting the UK consumers’ resilience despite mounting costs.”
Barclays shares were 3.9% higher at the time of writing on Thursday.