In the third quarter, Barclays' profit increased by 23%, surpassing predictions.

Barclays reported a net profit attributable to shareholders of £1.6 billion ($2 billion) for the third quarter, surpassing expectations.

The company's net profit was 23% higher than the same period in 2023, compared to the £1.17 billion net profit forecast in an LSEG poll of analysts.

The company's revenue for the period was £6.5 billion, slightly above the forecasted £6.39 billion.

In the second quarter, the lender's return on tangible equity increased from 9.9% to 12.3%, while its CET1 ratio, a measure of solvency, also rose from 13.6% to 13.8%.

Barclays recently announced a strategic overhaul to reduce costs, increase shareholder returns, and stabilize its long-term financial performance by focusing more on domestic lending and reducing costs at its volatile investment banking unit. This strategy includes the acquisition of Tesco Bank's U.K. retail banking business.

Despite a 10% increase in net profit at its investment bank, Barclays' net profit decreased slightly in the second quarter due to lower income at its U.K. consumer bank and corporate bank.

In the third quarter, domestic bank income increased by 4%, and the lender revised its annual forecast for U.K. retail net interest income from £6.3 billion to £6.5 billion. Additionally, corporate bank income rose by 1% due to an increase in average deposit balances, while investment banking income saw a gain of 6%.

In 2023, Barclays shares experienced a 55% increase in value from the beginning of the year.

Several banks have announced plans to restructure, streamline operations, and cut costs as they face a potential weakening of net interest margins due to falling interest rates. Earlier this week, Bank of America said it would consolidate its operations into four business units.

The third-quarter reporting season began on Wednesday with the posting of higher-than-expected net profit by the company. Additionally, both its investment bank and asset management divisions experienced a 11% increase in revenue year-on-year.

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