Barclays bank says first-half net profits soar 29 per cent

Barclays net earnings jumped 29% in the first half of 2010, on the back of surging profits at its investment banking division.

By Agencies | Aug 05, 2010, 12.21 PM IST

LONDON: British bank Barclays said on Thursday that net earnings jumped 29 per cent in the first half of 2010, on the back of surging profits at its investment banking division and tumbling bad debts.

Profits after tax climbed to 2.431 billion pounds (2.936 billion euros, $3.863 billion) in the six months to June 30, compared with 1.888 billion in the same part of last year, the group said in a results statement.

Barclays added that pre-tax earnings rallied 44 per cent to 3.9 billion pounds, while income rose eight percent to 16.58 billion.

The group's investment banking division saw pre-tax profits more than triple to 3.4 billion pounds.

Bad debt charges, meanwhile, plunged by 32 per cent to 3.080 billion pounds in the reporting period.

"Against the backdrop of subdued economic and market activity and the sovereign debt storm of the second quarter, we have delivered good growth in income and profits during the first half of the year," said chief executive John Varley.

The bank added that it was "pleased" with its performance but admitted that the outlook was "uncertain."

"Although the market and economic environment in which we operate remains uncertain, I am pleased with the strength of our income generation, the flexibility in our cost base and the performance of our risk management which, in combination, are driving higher profits and returns," added finance director Chris Lucas in the earnings release.

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