Barclays Q1 profit up on investment bank rebound
LONDON, April 26
LONDON, April 26 (Reuters) - Barclays posted a 22 percent rise in first-quarter profit, ahead of market forecasts, as a strong rebound in revenue from its investment banking arm and a drop in bad debt countered increased compensation for insurance mis-selling.
The British bank on Thursday reported an adjusted pretax profit of 2.45 billion pounds ($3.94 billion) in the three months to end-March, up from 2 billion a year ago and above the average forecast of 2 billion pounds from a poll of analysts supplied by the company.
Top-line income at Barclays Capital, the investment bank business that provides the bulk of the bank's profit, rose to 3.46 billion pounds, up 3 percent from the fourth quarter and above the consensus forecast of 3.36 billion pounds.
A slump in bond trading income due to the euro zone debt crisis had dragged down Barclays' profit in 2011, prompting Chief Executive Bob Diamond to push back a return on equity target of 13 percent he set less than a year ago.
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