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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
BC
