24th Oct 2023 09:11
(Alliance News) - Barclays PLC's third-quarter revenue fell short of estimates, though its profit topped consensus, despite a rise in provisions, numbers on Tuesday showed.
The lender cut its margin outlook at its UK arm but maintained its return on tangible equity outlook at group level.
Barclays shares slumped 5.9% to 135.50 pence each in London on Tuesday morning following the announcement.
For the quarter that ended September 30, total income rose 5.2% on-year to GBP6.26 billion from GBP5.95 billion a year prior.
Total income fell short of the GBP6.29 billion company-compiled consensus.
Barclays reported pretax profit of GBP1.89 billion for the quarter, down 4.3% on-year from GBP1.97 billion. However, it beat the company-compiled market consensus of GBP1.77 billion.
Hurting profit, credit impairment charges were increased by 14% to GBP433 million from GBP381 million a year earlier.
Barclays UK total income amounted to GBP1.87 billion in the third-quarter, down 2.2% on-year. Barclays International revenue was 9.3% higher at GBP4.44 billion from GBP4.07 billion.
Looking ahead, Barclays backed its annual return on tangible equity forecast of "greater than 10%".
However, it trimmed UK net interest margin guidance. It now expects this to land around "3.05% to 3.10% in 2023".
"Guidance is sensitive to the level and mix of deposit balances and further changes in expectations for interest rates," it added.
It had previously predicted a UK net interest margin of "less than 3.20% with a current view of around 3.15%".
Barclays did not declare any new shareholder distributions.
"Barclays is committed to maintaining a balance between a strong capital position, delivering total cash returns to shareholders and investment in the business. Barclays pays a progressive ordinary dividend, taking into account these objectives and the earnings outlook of the group. The board will also continue to supplement the ordinary dividend as appropriate, including with share buybacks," it said.
Barclays also on Tuesday said it completed the GBP750 million share buyback it had announced in July. It bought 493.6 million shares in total at an average price of 151.94p.
By Eric Cunha, Alliance News news editor
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