Barclays profits up 12% as UK banks brace for tax increase in budget
Barclays announced a £500m share buyback after reporting a 12% rise in quarterly profits, as the lender prepares for a potential increase in UK bank taxes in next week’s budget.
Barclays’ 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.
The bank 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 lender’s strong performance included a 6% rise in net interest income at its UK retail banking operations, to £2bn.
Bank tax in the budget
The announcement comes only days before Chancellor John Healey is due to announce a hike on banks in the 28 October budget, as Prime Minister Andy Burnham’s government looks for ways to raise revenue to help fund cost of living support programmes.
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.
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.
Nowak added that at a time when the chancellor needs to raise more revenue to support households and businesses through a looming energy bill crunch, Britain’s big four banks have made £200bn in profit since 2021.
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