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* H1 profit 5 billion pounds (2020: 1.3 billion)
* Bank launches 500 million pound buyback
* Dividends continue as curbs scrapped
(Adds detail)
By Lawrence White and Iain Withers
LONDON, July 28 (Reuters) - Barclays will resume
shareholder payouts after beating first-half profit expectations
on bumper investment banking fees and the release of cash set
aside to cover pandemic-related bad loan charges.
Announcing first-half profits that nearly quadrupled, the
British lender said it would pay an interim dividend of 2 pence
per share, after the Bank of England in July scrapped its
pandemic curbs on payouts.
It also said it would buy back 500 million pounds of its own
shares, as it forecast bad loan charges would remain below
historical levels due to the improved economic outlook and low
default rates on unsecured lending.
Barclays reported profit before tax of 5 billion pounds
($6.94 billion) for the six months to June 30, well above the
consensus forecast of 4.1 billion pounds from analysts polled by
the bank and up from 1.3 billion a year ago.
The results were boosted by the bank releasing 742 million
pounds in cash set aside for bad debt charges that have yet to
materialise, as government support measures prop up the economy.
Barclays' investment bank has enjoyed a strong run in recent
quarters, as volatile markets during the pandemic led to
frenzied trading, while companies have raised record amounts
through blank-cheque investment funds and stock listings.
Equities fees rose 38% and investment banking fees from
advising on deals rose 27% in the first half of the year,
Barclays said.
Its fixed income, currencies and commodities (FICC) business
meanwhile fell 37% against a strong first half a year ago.
The bank said its costs rose 10%, mainly from expenses
associated with cutting its real estate footprint and higher
bonuses due to its improved performance.
With the resumption of interim shareholder payouts, Barclays
set a positive tone ahead of results from rivals Lloyds
, NatWest and HSBC over the next week.
($1 = 0.7209 pounds)
(Reporting by Lawrence White and Iain Withers; editing by John
O'Donnell and Jason Neely)
