Barclays Lifts Net Interest Income View After Earnings Beat Expectations

By Elena Vardon

Barclays raised its net interest income guidance for 2024 after its second-quarter earnings beat expectations, and launched a 750 million-pound ($964.2 million) share buyback.

The British lender on Thursday posted a pretax profit for the three months ended June 30 of GBP1.94 billion compared with GBP1.96 billion a year earlier, and expectations of GBP1.56 billion, taken from a company-compiled consensus.

The bank's total income edged up to GBP6.32 billion from GBP6.285 billion a year prior, beating consensus of GBP6.16 billion. A rise in income from its private bank and wealth-management division as well as at its investment bank and its U.S. consumer bank offset lower revenues from Barclays UK and its corporate bank in its home country.

Barclays nudged up its guidance for group net interest income--which excludes investment banking and its home office--to around GBP11.0 billion from GBP10.7 billion previously. This is now expected to include a GBP6.3 billion contribution from Barclays UK compared with GBP6.1 billion before.

The group reiterated its 2024 and 2026 outlook for other metrics.

"We are making good progress on our three-year plan," Chief Executive C. S. Venkatakrishnan said.

It closed the quarter with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 13.6% compared with consensus of 13.8%.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

August 01, 2024 02:56 ET (06:56 GMT)

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