Source: Sharecast
The bank posted a 7% fall in third quarter profit to £2bn, partly due to the higher £235m provision relating motor financing taking the total impairment to £325m. Britain's financial regulator announced earlier this month that consumers who were mis-sold products could receive payouts averaging £700.
Barclays also revealed what it called a "single name" credit impairment charge in its investment bank worth £110m.
The lender plans to return at least £10bn of capital to shareholders between 2024 and 2026, through dividends and share buybacks, with a continued preference for the latter.
Its target for a return on equity was lifted to greater than 11% this year from around 11% due to higher-than-expected income and faster cost savings.
Guidance for group net interest income – the difference between what it pays savers and receives from borrowers – was lifted to greater than £12.6bn from greater than £12.5bn.
AJ Bell investment director Russ Mould said: “According to consensus analysts’ forecasts, Barclays, after the strong third quarter profit ... is on track to record its best ever year for pre-tax income, barring some unforeseen disaster in the fourth and final quarter, and exceed the £8.4bn made in 2021."
Reporting by Frank Prenesti for Sharecast.com