Barclays Bank (BCS.US) reported first-quarter revenue exceeding analysts' expectations, after the bank's stock trading business unexpectedly reaped an additional profit from the volatile global market.
The Zhitong Finance App learned that Barclays Bank (BCS.US) reported first-quarter revenue exceeding analysts' expectations. Previously, the bank's stock trading business unexpectedly reaped an additional profit from the turbulent global market.
Barclays Bank's revenue for the first quarter was £7 billion, down 4% year on year, exceeding market expectations; the Group's net interest income was £3,072 billion, compared to £3,053 billion in the same period last year, of which Barclays UK NII was £1.5 billion.
Profit before tax was £2.3 billion, down 12% year over year; accrued profit was £1.5 billion, down 13% year over year, below analysts' expectations of £1.47 billion. Earnings per share were 10.3 pence compared to 11.3 pence in the same period last year.
The loan loss rate was 51 basis points, in the expected range of 50-60 basis points.
Revenue related to the bank's global market business declined to £2.3 billion (US$2.87 billion) in the first quarter, exceeding the average of £2.19 billion predicted by analysts.
The division's performance was supported by a 25% surge in stock trading revenue, which was enough to offset the lower-than-expected performance of its fixed-income market segment.
Barclays CEO C.S. Venkatakrishnan said, “In terms of stocks, we are doing a very good job.” “Securitization products have performed very well, and in terms of interest rates in Europe, we are a bit weak.”
The sluggish quarterly results of FICC's business are in stark contrast to Deutsche Bank's trading business. Deutsche Bank's trading business grew 7% in the first quarter, exceeding analysts' expectations and better than most of America's largest investment banks.
Earlier this year, Venkatakrishnan reformed Barclays's business structure and set more ambitious financial goals in a broad-ranging investor speech. Venkatakrishnan and Chairman Nigel Higgins are facing increasing pressure from investors due to Barclays Bank's mediocre returns and sluggish stock prices.
Barclays reported a return on tangible equity of 12.3%. The company still expects this indicator to exceed 10% this year.
The company has sold a good Italian retail mortgage portfolio and is discussing selling a bad Italian retail mortgage portfolio linked to the Swiss franc.