Barclays (NYSE:BCS) reported better-than-expected third quarter profits on Friday, buoyed by a strong trading performance at its under-pressure investment bank, but warned of tougher times ahead as the global economy softens.
Barclays reported profit before tax of 1.8 billion pounds ($2.31 billion U.S.) for the July-September period, though that figure excluded a previously announced provision against insurance mis-selling.
Analysts had forecast the profit excluding such charges would be around 1.5 billion pounds.
Profits were dented by a 1.4-billion-pound provision to compensate customers mis-sold payment protection insurance on loans and credit cards, in the middle of the 1.2-1.6-billion-pound range the bank had earlier forecast.
The lender said it had agreed with regulators to account its risk weighted assets more in line with British peers, resulting in an increase in its target core capital ratio to 13.5%.
The bank said it continues to target a greater than 9% return on equity for 2019, but that the global environment had made achieving those goals more difficult.
The bank says it was still pushing through more than two million claims or requests for payment protection insurance information at the end of Q3, and it could not be certain the provision it had taken would be final.
Shares in the bank traded in New York early Friday, up 11 cents, or 1.3%, to $8.59
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