The bank’s wealth unit recorded a profit before tax increase of over 30% from £61m to £79m in the third quarter, principally due to reduced operating expenses.
The wealth division also reported a slight income increase, from £1.29bn to £1.33bn in the nine months to 30 September on a year-to-year basis. The 3% increase was driven by the bank’s high net worth businesses, the bank said.
Operating expenses were flat as the continued cost of the strategic investment programme was offset by cost control initiatives over the same period, Barclays said.
Client assets 0.8% slim increase
The wealth unit reported a slim 0.8% increase in its client assets to £177.6bn from £176.1bn in the second quarter, principally reflecting net new assets in high net worth.
Within the wealth unit, loans and advances to customers increased 1% to £19.9bn from £19.8bn in second quarter, while customer deposits increased 4% to £52.2bn over the three-month-basis.
£290m regulatory penalties
Barclays saw a global adjusted profit before tax up 18%, while non-performance costs decreased 3% to £11.8bn after absorbing regulatory penalties of £290m relating to the industry-wide investigation into the setting of LIBOR rates.
The United States Federal Energy Regulatory Commission (FERC) Office of Enforcement (FERC Staff) has been investigating Barclays’ power trading in the western US from late 2006 through 2008.
On 25 October 2012, the FERC notified Barclays that it has authorised the issuance of a public order to show cause and notice of proposed penalties against Barclays in relation to this matter.
Source: Private Banker International