Markets News

Barclays Q3 profit beats expectations, helped by lower provisions

LONDON, Oct 23 (Reuters) - Barclays reported much better than expected third quarter earnings on Friday, as its consumer businesses swung back to profit and provisions against bad loans fell compared with the previous quarter.

Barclays reported profit before tax of 1.1 billion pounds ($1.44 billion) for the July-September period, double the 507 million pounds average of analysts’ forecasts.

The British lender booked credit impairment and provision charges for the quarter of 608 million pounds, below the 1 billion pounds analysts had expected.

The combined effect of these better-than-expected results drove the bank’s core capital ratio, a key measure of financial strength, to 14.6% against expectations of 14%. ($1 = 0.7656 pounds) (Reporting By Lawrence White and Iain Withers Editing by Rachel Armstrong)