Barclays is giving a further £500m to shareholders after reporting a jump in quarterly profits, as the lender steels itself for an increase in UK bank taxes at next week’s budget. The lender said it logged £2.3bn in pre-tax profits over the July to September quarter, up 12% from £2.1bn during the same period last year. The bank’s chief executive, CS Venkatakrishnan, said he would be passing more cash to investors through a £500m share buyback, taking the total amount given to shareholders since January – through buybacks and dividends – to £2.8bn.
It comes only days before the chancellor, John Healey, is due to announce a hike on banks in the 28 October budget, as the prime minister Andy Burnham’s government looks for ways to raise revenue to help fund cost of living support programmes. Barclays’ strong performance included a 6% rise in net interest income at its UK retail banking operations, to £2bn. The figure has become a flashpoint for campaigners pushing for a bank tax.
It accounts for how much money banks make from loan charges, minus what they pay on deposits, and is linked to interest rates, which have been rising as the Iran war has driven up inflation expectations. The Trades Union Congress, which has been forcefully campaigning for a bank tax increase, said lenders need to contribute more to the public at a time when they were struggling with household bills. The TUC general secretary, Paul Nowak, said: “Barclays’ bumper profits aren’t an anomaly.
All the big banks are doing exceptionally well at the same time – but their windfall profits have been underpinned by mortgage misery for millions. That’s why it’s time for banks to pay a fairer share. They can – and should – pay more tax.”
Extract — continue reading at the source.
