Barclays have reported a £5 billion pre-tax profit for the first half of 2021, up from £1.3 billion in the first half of 2020.
Barclays have said they’ve recovered £742 million out of the £3.7 billion they set aside to cover bad debts, although they still have £1.9 billion set aside.
The bank has reported a higher pre-tax profit than most analysts expected. Barclays was the first UK bank to resume dividend payments after they were stopped in 2020 and now Barclays is resuming an interim dividend of 2p per share – also higher than analysts expected. Additionally, Barclays has revealed a share buyback of up to £500 million.
Investment banking has performed well for Barclays, with pre-tax profits rising 52%.
Jes Staley (Barclays CEO) said:
“Our investment banking fees and equities businesses have delivered record income, and we are seeing encouraging signs of recovery in consumer banking.”
Overall the first half of 2021 results look promising for Barclays, profits have increased and dividends are continuing. They also have a strong capital position, with a CET1 ratio of 15.1% which is above their target range of 13-14%.