LONDON, Oct 27 (Reuters) - Barclays reported aforecast-beating bounce in third quarter profits to 1.7 billionpounds ($2.08 billion) on Thursday, as it followed U.S. peers inreporting a bumper quarter for its investment banking business.
The British bank's group pretax profits for the three monthsto the end of September, excluding notable items, was up from1.4 billion a year ago, above the average forecast of 1.3billion pounds from analysts polled by the company.
The performance was driven by improved investment bankingresults, with profits up 40 percent overall from a year ago onstronger returns from the trading division in particular.
"The growing momentum in attaining our strategic goals meanswe can feel optimistic of our prospects of completing therestructuring of Barclays," Chief Executive Jes Staley said inthe statement.
The bank's common equity tier one ratio was unchanged at11.6 percent.
Morgan Stanley and Goldman Sachs both sawprofits for the third quarter rise by more than 50 percent,largely from the surge in bond trading as investors fret overmonetary policy around the world.
Barclays also benefited from earning the majority of itsinvestment banking revenues in the United States, since thedollar has appreciated in value against the British pound in theaftermath of Britain's vote to leave the European Union.
The bank said it was on track to close its non-core unit in2017 and said costs were under control and on target, but itbooked a fresh 600 million pound charge for mis-selling paymentprotection insurance (PPI).
Analysts expect this could be the bank's last charge forPPI, after the Financial Conduct Authority pushed back adeadline for claims by a year to mid-2019. The scandal hascollectively cost major British lenders more than 30 billionpounds to cover victims' claims.($1 = 0.8183 pounds) (Reporting By Lawrence White, editing by Sinead Cruise)
Barclays (BARC)
