Barclays outperforms US rivals in bond buying and selling

Merchants at Barclays outperformed their Wall Avenue friends within the second quarter, bolstering chief govt Jes Staley’s case for preserving the lender’s funding financial institution.

Revenues from fastened earnings buying and selling have been 25 per cent increased than a yr in the past, serving to offset a weaker efficiency in equities buying and selling, which was down 14 per cent.

General, second-quarter revenues on the financial institution’s markets enterprise have been eight per cent increased than a yr in the past, in contrast with a mean eight per cent drop at US rivals.

Barclays posted the stronger-than-expected buying and selling outcomes because it reported second-quarter income that fell by 16 per cent in comparison with a yr in the past, albeit in step with analyst forecasts. It additionally stated it might enhance its dividend by 20 per cent.

The financial institution posted internet income of £1.03bn on revenues of £5.5bn for the second quarter.

It stated that the income atmosphere within the first half of the yr was “difficult” and introduced that it might make additional cost-cuts because it scrambles to satisfy its annual profitability goal.

Barclays stated it now anticipated to cut back annual prices for 2019 to under £13.6bn, in comparison with its earlier steerage for working bills within the vary of £13.6bn to £13.9bn.

Barclays stated that its return on fairness — a key measure of profitability — was 9.four per cent within the first half of the yr, reflecting declining profitability throughout its totally different companies.

The financial institution is concentrating on returns of greater than 9 per cent for the total yr, which look more and more robust to attain on condition that profitability tends to be decrease within the second half of the yr.