Banking giant Barclays has announced a big rise in its pre-tax profits for the first quarter of this year.
Profit for the first three months to 31 March was ┬ú1.82 billionÔÇöa rise of 47 per cent from the same period a year earlier.
Barclays, which is the UKÔÇÖs third-largest bank by assets, said the results were boosted by strong investment bank earnings and a reduction in bad debtsÔÇöbenefits also experienced by many of the bankÔÇÖs rivals, such as Goldman Sachs and JPMorgan.
Bad debts totalled £1.5 billion in the first quarter, below the £1.9 billion of the previous three months and the average forecast of £1.8 billion pounds from analysts.
The bank continued to benefit from its strengthened investment banking unit, Barclays Capital, in which profit before tax grew by 62 per centÔÇöto ┬ú1.47 billionÔÇö on the back of strong fixed income, currencies and commodities (FICC) business. This accounted for four-fifths of total group profits.
Barclays Capital hired more than 750 people in Europe and Asia last year, adding equities and mergers and acquisitions advisers, after buying the North American unit of Lehman Brothers in late 2008. The unit is now a major contributor to its earnings.
BarclaysÔÇÖ retail banking unit also performed strongly, with profits rising by 20 per cent to ┬ú238 million. This included a gain of ┬ú71 million on the acquisition of Standard Life Bank.
Commenting on the results, John Varley, group chief executive of Barclays, said: ÔÇ£I am pleased with the strong growth in profits which we have delivered this quarter.
ÔÇ£Diversification of our business and risk, and good underlying performance, have combined to produce this result. The improvement that we have seen in impairment reflects the signs of economic recovery now evident in many of the markets in which we operate.ÔÇØ
Barclays said trading in April was consistent with the trends seen during the first quarter. It is due to hold its annual meeting of shareholders in London this morning.
Lloyds Banking Group, the UK bank which is 41 per cent owned by the government, this week said it returned to profit as bad loan provisions declined.
Barclays was one of the UK banks that avoided taking money directly from the government during the global financial crisisÔÇöunlike Northern Rock and RBS, who were both assisted with funding from UK taxpayers.
