Adjusted profits at UK lender Barclays surged by over a fifth in the first quarter of 2012, well above expectations.
Adjusted pre-tax jumped 22% from £2,004m registered in the first quarter of 2011 to £2,445m this year. Consensus estimates were for a reading of £2,006m. Adjusted results exclude the impact of £2,620m own credit reversal (2011: £351m), £300m in provisions for PPI redress (2011: nil) and any gains on acquisitions and disposals (2012: nil, 2011: £2m).
On a statutory basis, the bank reported a pre-tax loss of £475m, compared with a profit of £1,655m last year.
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Total income excluding own credit rose to £8,138m, 5% higher than the first quarter of 2011.Meanwhile, income at the Investment Bank (known previously as Barclays Capital) increased by 3% year-on-year to £3,464m, ahead of consensus estimates of £3,360m.
Adjusted return on equity increased from 10.2% to 12.2%, while the Core Tier 1 ratio dipped slightly from 11% at the end of 2011 to 10.9%. The first-quarter dividend was maintained at 1p per share.
"Barclaysfirst quarter resultsare an encouraging start to the year and demonstrate continued progress across our execution priorities," said Chief Executive Bob Diamond.
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