Barclays PLC‘s shares on April 25 soared as the UK financial firm reported positive quarterly results.
First-quarter attributable profit was down 13% from the prior year to £1.55 billion (€1.79 billion) led by a 21% decline in fixed income, currencies and commodities income, according to the company’s first-quarter earnings report. Despite this, profit was slightly higher than expected at 6% above the average analyst estimates compiled by the bank of £1.46 billion (€1.68 billion.)
The subdued fixed income, currencies and commodities income of £1.40 billion (€1.62 billion) as partially offset by a 25% jump in equities income to £883 million (€1.02 billion). Income at Barclay’s investment banking unit was down 7%.
Shortly after Barclays released its first-quarter earnings report, its shares jumped 7% upwards in early trading in London. The bank’s shares are up about 23% year to date.
Barclay’s UK retail bank booked a 4% drop in net interest income to £1.55 billion (€1.79 billion) as deposit migration continued, although rather slowly. The bank’s net interest margin stood at 3.09% at the end of March. The financial firm posted a quater-over-quarter increase in total income to £1.83 billion (€2.12 billion) and significantly lower credit impairment charges from last year.
Gross mortgage lending stayed in line with the trend in 2023 with balances of £163 billion (€188 billion.)
Just a day before Barclays reported its earnings release, the financial firm announced that its subsidiary Barclays Bank Ireland PLC plans to sell its Italian mortgage portfolio for €3.3 billion. Barclays expects to transfer the portfolio to Miltonia Mortgage Finance Srl. Barclays will receive cash proceeds of about €400 million, which the company will use for general corporate purposes, according to an April 24 filing at the London Stock Exchange. The bank expects the sale to conclude in the second quarter of 2024.
Once the deal closes, Barclays Bank Ireland will continue to service the portfolio for a transitional period with the intention that Barclays subsidiary will transfer the servicing of the portfolio to a third-party long-term servicer.