Barclays Reports Significant Profit Increase Amidst Cost Cuts and AI Integration
Bank's third-quarter pre-tax profit rises 12% to £2.3 billion as it eyes further efficiency savings and faces calls for increased taxation.
Callum Smith
Barclays reported a substantial increase in pre-tax profit for the third quarter.
The bank's UK retail, corporate banking, wealth management, and investment banking divisions all saw increased income. This follows significant business cost reductions and strong stock market trading performance.
The investment bank specifically benefited from a stronger performance in global equity trading this year. However, fixed income trading income decreased by 19%.
CS Venkatakrishnan stated, "With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets. We are confident in and committed to the 2028 targets that we laid out earlier in the year."
The company achieved £200 million in cost efficiency savings during the third quarter. An additional £300 million is planned for the final three months of the year.
Barclays plans to cut approximately 5,000 staff within months. These job losses are expected this year as the bank increases its use of artificial intelligence to boost efficiency.
Meanwhile, the Trades Union Congress (TUC) campaigns for an increase in bank taxes. Paul Nowak claims Britain’s big four banks have made £200 billion in profit since 2021.
Chancellor John Healey is due to announce a hike on banks in the 28 October budget. Prime Minister Andy Burnham’s government seeks ways to raise revenue to help fund cost of living support programmes.