Profit for the three months to 30 September was £327m, including an own credit charge of £947m. This was a significant fall from the Q2 pre-tax profit of £2.127bn.
Excluding own credit, group profits rose from £1.17bn to £1.27bn between Q2 and Q3, offsetting a decrease in profits at Barclays Capital, the group says.
Gross income of £7.4bn – a measure of overall business – was down 4.5% from the quarter before and 9.5% from 2009.
Impairments fell to £1.22bn, down 23% from the previous three months, and down 27% from the previous year.
Barclays Capital, run by Bob Diamond who takes over as chief executive next March, ramped up nine-month profit to £3.22bn from £1.42bn in 2009. Excluding own credit it jumped 22% to £3.31bn.
However, the three-month figure was down to £2.83bn from £3.28bn in Q2 and £3.85bn at the beginning of the year.
Challenging market conditions and a “seasonal reduction in activity” were to blame for a drop in demand and 14% slide in profits at the fixed income, currency and commodities business, and 36% slump in equities and prime services, the bank says.
So far this year, Barclays has made £4.27bn, up 4% on the same time last year, or 6% to £4.24bn excluding movements on own credit, gains on acquisitions and disposals and gains on debt buy-backs. Impairment charges have been slashed by 31% to £4.30bn.
Barclays Corporate turned last year’s £300m nine-month profit to a £414m loss this time. Despite a 20% increase in the UK, an impairment charge of £198m in Spain for the third quarter added to the £553m reported for the first half. That meant the Continental Europe business has lost £712m so far this year compared with a £26m profit last year.
On overall trading, the company says group income in October was consistent with the run rate for the first nine months of the year. “At Barclays Capital, top-line income in October was consistent with the run rate for the third quarter.”
Outgoing CEO John Varley says the results are “resilient” and the business is “well equipped to deal with regulatory change as Basel III is implemented between now and 2019”.
Barclays shares rose 2.78% to 293.6p following the release of the results.
Additional reporting by ShareCast
