Barclays’ Q3 results show improved economic outlook

Released on 23 October, the results preceded news that the chief executive of Barclays - Jes Staley - would be stepping down after an investigation by city regulators into his relationship with Jeffrey Epstein.

The former chief executive had said the Q3 results showed a “strong third quarter performance” by the bank.

At a glance

Barclays UK recovered £306m previously set aside for impairment charges from last year’s Q3 year-to-date figure of £1.3bn. This recovery of bad debt provision was driven by an improved macroeconomic outlook and lower unsecured lending balances.

Loan-loss provisions fell to £137m compared with £233m in the same quarter last year, during the worst phase of the pandemic.

Customer deposits increased seven percent to £257bn, reflecting an increase of £13.6bn in personal banking throughout the third quarter.

Barclays UK saw a steady increase in new mortgage applications with loans and advances to customers increasing by two percent to £208bn.

Climate pledges

Barclays stated that they are engaged in several sector-wide climate initiatives including reaching net-zero carbon emissions across their lending portfolios by 2050.

However, according to a report by a climate finance campaigner - Market Forces - the bank has financed more fossil fuel projects than any of the UK’s largest banks in the months leading up to the COP26 climate talks in Glasgow.

The bank financed £4.1bn for new fossil fuel projects from January 2021 to the eve of the UN climate summit Market Forces found.

Credit Strategy reached out to Barclays but they were not immediately available for comment.

Mia Watanabe, a campaigner at Market Forces, said: “Despite their warm words, these banks continue to finance fossil fuel companies and projects that are destroying the world’s hopes of meeting climate targets.”

A previous annual report by the group found that Barclays was the world’s seventh-largest fossil fuel funder.

For our premium members, there is an in-depth analysis of the full Q3 results available here.