Barclays' Q3 profits soar to £2.2bn, surpassing expectations with robust investment banking performance

Barclays' third-quarter profits exceeded predictions, thanks to a resurgence in its Wall Street investment banking operations. The FTSE 100 bank posted a pretax profit of £2.2bn for the period between July and September, marking an 18 per cent increase from £1.9bn the previous year.

Analysts had anticipated a third-quarter profit of around £2bn. The earnings boost was largely attributed to Barclays' investment bank, which saw a six per cent year-on-year income growth to £2.9bn, as reported by City AM.

Investment banking income soared by 13 per cent due to higher fees in Barclays' advisory and debt and equity capital markets units. Income from global markets, fixed income and equities all rose by three per cent.

This strong performance mirrored that of rivals such as JP Morgan and Goldman Sachs, who also exceeded earnings estimates for the third quarter. Meanwhile, Barclays' UK bank demonstrated resilience amidst falling interest rates.

Total income for the business increased by four per cent, aided by Barclays setting aside just £16m for bad loans during the quarter a significant decrease from £59m the previous year. Its net interest income (NII) the difference between what it earns from loans and what it pays on deposits was six per cent higher at £1.7bn, aligning with estimates.

Barclays' net interes