Weak post-Brexit pound helps propel Barclays to a third-quarter bonanza
A bumper quarter in investment banking in the US, with proceeds magnified by dollar strength, powered Barclays to a forecast-beating third-quarter profit
London — Barclays on Thursday reported a forecast-beating bounce in third-quarter profits to £1.7bn, benefiting like its US rivals from a bumper quarter in investment banking. The stronger performance from Barclays’ investment bank provides an early endorsement of CE Jes Staley’s restructuring plan, and is likely to quieten calls for Barclays to divest the business entirely and focus on simpler retail and commercial activities. Staley committed to growing the investment banking business as he believes it offers counter-cyclical earnings potential compared with corporate and retail banking. "What we have seen post the Brexit vote with the volatility in the market is confirmation that diversification brings benefits," Staley told reporters. Morgan Stanley and Goldman Sachs reported rises in third-quarter profits of more than 50%, largely from the surge in bond trading as investors fret over monetary policy around the world. Barclays group pretax profit for the September quarter, exclu...
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