Barclays has reported a first-quarter profit above expectations, hailing a resilient performance from its consumer bank.
The bank reported pre-tax profit of £2.6bn, above the average analyst forecast of £2.2bn, and higher than the £2.2bn it reported at the same time last year.
CS Venkatakrishnan, Barclays group chief executive, said the results showed a “strong” first quarter, adding: “The momentum across the group allows us to maintain a robust capital position, deliver attractive returns to shareholders and support our customers and clients through an uncertain economic environment.”
Income at the lender’s consumer, cards and payments division rose 47% to £1.3bn thanks to rising credit card balances driven partly by its acquisition of a portfolio from retailer Gap last year.
But the bank’s bad loans provision for the quarter soared to £524m from £141m a year earlier, something it blamed mainly on its US cards business.
Investment banking presented disappointing results – income from global markets trading fell 8% and fees from advising on corporate mergers and fundraisings were down 7%.
Mergers and acquisitions activity was at its lowest in more than a decade, as rising interest rates and high inflation reduced appetite for deal-making.
