Cost-cutting boosts Barclays profits

| October 31, 2011
”Cost-cutting

In an interim management statement today, banking giant Barclays said profits climbed 5% in the third quarter – boosted by cost-cutting measures.

For the three months to the end of September, the bank said pre-tax profits were £1.34 billion, versus £1.27 billion for the same period a year earlier.

However, revenues for the three month period were down 3% at £7 billion, as a result of “significant economic and market headwinds”, the bank said.

The bank, which is one of the few not to have received any financial help from the Government, said profits declined at its main investment banking unit, Barclays Capital, with profits 49% lower at £388 million.

For the nine-month period to 30 September, meanwhile, the bank’s group-wide profits rose 18%.

Commenting on the figures, Barclays chief executive Bob Diamond, said: “Our focus on cost reduction continues to deliver results and we are confident that we will exceed the £1bn savings target we set earlier this year.”

Talking about its exposure to the euro zone debt crisis, Mr Diamond said it was monitoring this.

It said the bank’s sovereign exposure to Spain, Italy, Portugal, Ireland and Greece reduced by 31% to £8 billion in the three month period.

Finally, the bank said it remains committed to UK lending and is on track to exceed its target, as set out in the Project Merlin scheme, agreed earlier this year.

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