LONDON –
The British lender reported a pre-tax profit of 1.58 billion pounds for the April-June quarter on Thursday, down from 1.9 billion pounds a year ago.
Barclays said it would pay an interim dividend of 3 pence per share in a sign of confidence in its ability to improve returns, adding that it expected the full year dividend to be around three times that amount.
Barclays also said it expected full year costs to come in at less than 13.6 billion pounds, below the minimum threshold it previously said it was targeting for 2019.
The bank reported a particularly strong performance in the second quarter from its fixed income, currencies and commodity trading (FICC) business, where income rose 25% to 920 million pounds.
Income from its equities business fell 14%, and banking advisory fees were down 1%.
Barclays’ results follow another tough quarter for its Wall Street rivals, which earlier this month reported falling trading trading revenues as investors spooked by geopolitical tensions pared activities and steered clear of fresh bets.
Barclays’ quarterly results reports have been overshadowed in the last year by the debate about the performance of its investment bank sparked by activist investor Edward Bramson.
New York-based Bramson’s bid to gain a seat on the board was defeated in a May shareholder vote, but he said he will continue to agitate for cuts to the lender’s trading unit.
Chief Executive Jes Staley has defied Bramson’s demands, instead doubling down on his investment banking strategy with a push back into securitisation and a gradual revival of its mothballed Asian advisory business.
(Content & Photos Syndicated Via Reuters)
(Reporting By Lawrence White and Iain Withers, editing by Sinead Cruise)