Barclays bank profit jumps on US tariffs volatility
Source: AFP
British bank Barclays posted on Tuesday second quarter profits that beat expectations as traders benefitted from volatility in global markets caused by US President Donald Trump's tariff blitz.
Net profit jumped 34 percent to £1.7 billion ($2.3 billion) in the three months to the end of June, compared to one year earlier, Barclays said in an earnings statement.
Trading activity was boosted for the second quarter in a row after Trump's return to the White House.
The bank said the boost to its global markets income reflected "continued support provided to clients through a volatile market environment".
Sharp fluctuations in financial markets were exacerbated by Trump's announcement of sweeping tariffs on global trading partners in April, which subsequently flip-flopped, driving up volumes of financial transactions.
Since then, markets have calmed as countries reach trade deals with Washington to lower the levies, but uncertainty over the economic impact has remained.
The earnings beat was driven by "a resurgent investment banking division thriving in today's volatility -- mirroring the strength seen across US peers", said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
The bank announced a £1-billion share buyback and a slightly increased dividend for the first half.
Barclays added that its credit impairment charges increased on "elevated US macroeconomic uncertainty" and owing to its acquisition of Tesco bank in the UK.
Source: AFP
