Barclays Shares Increase as Turmoil Weathered by Investment Bank

Barclays announced that revenue in its investment bank was down less than had been expected in the turbulent markets and the company avoided new charges of misconduct, helping it investors overlook its larger loss from the sale of unwanted assets.

Profit before taxes fell by 25% to just over £793 million equal to $1.15 billion from last year’s £1.06 billion, said the bank, based in London, in a regulatory filing on Wednesday.

Revenue was down 13% to just over £4.6 billion, topping estimates of £4.48 billion.

Shares climbed at the bank to their highest in close to three months as the investment bank of the firm posted smaller declines in revenue than its rivals in the U.S.

CEO Jes Staley, who resisted calls to spin off or shrink the unit, said he had been encouraged by the substantial gains in market share in that segment of the bank.

Shares were up 2.5% in early London trading on Wednesday paring the loss during 2016 to 19% and climbing to their highest prices since February 2.

Revenue from the market’s business of the firm fell 4%, as an increase in credit trading was able to offset declines in equity, and the macro trading units.

Fees from investment banking dropped by 12% and the company said its April income had dropped from that of the first quarter.

Barclays announced that underlying profit before taxes at the investment and corporate bank was £701 million, a drop of 31%, excluding some charges that were one time for regulatory and legal matters.

Barclays had warned that the first quarter of the year would have lower revenue from its investment bank following a weak March performance.

The bank has not provisions of note for investigations or customer redress, following nearly £1 billion of those charges in the same quarter one year ago. The bank also said that the program of cost cutting remains on track.


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