Barclays Q3 Results

Barclays has published its Q3 2019 Results.

Jes Staley, Group CEO said: “For the year to September our Group RoTE stands at 9.7%, including a 10.2% return in the third quarter.

Profit before tax was just under £5bn, excluding litigation and conduct, and earnings per share were 19.7 pence for the nine months.

These represent another set of consistent and resilient results, and they show the benefits of our diversified model - one which allows us to weather today’s macro headwinds, and grow our businesses and profitability over time.

In Barclays UK, the business has delivered a robust year-to-date RoTE of 17.2%, including 21.2% in the third quarter, through mortgage and deposit balance growth.

The CIB has produced an RoTE of 9.3% for the first nine months, including 9.2% in the third quarter. This reflects a strong performance in Markets, with income up in the quarter by 13%, and in Banking, where income rose by 33%.

Our CC&P business produced an RoTE of 15.8%, and we are targeting further growth in US cards, with a particular focus on capturing new partnership opportunities, a core strength of the Barclays franchise in the States.

As we continue to invest in our digital capabilities across the bank, management’s focus on cost control remains a priority. Our cost to income ratio was stable at 62%, and we continue to expect to see positive jaws across the Group over the remainder of the year, and for the full year.

These results show we remain on track to achieve our target of a group return of greater than 9% for 2019. We continue to target an RoTE of greater than 10% in 2020, though we acknowledge that the outlook for next year is unquestionably more challenging now than it appeared a year ago, in particular given the uncertainty around the UK economy and the interest rate environment.

Despite the impact to profitability of the £1.4bn PPI provision, our CET1 ratio of 13.4% continues to be within our target, which is revised to c.13.5%, now that our operational risk RWAs are accounted for more consistently with UK peers.”