Its gross mortgage lending volume was down on the previous quarter’s £8.1bn.
Barclays UK saw its income increase 19 per cent to £1.9bn which it said was driven by margin growth. Its net interest income rose by 21 per cent to £1.6bn, and Barclays UK ended the period with a net interest margin of 3.18 per cent, up from 2.62 per cent last year.
It said higher interest rates outweighed mortgage margin pressure.
The UK division’s profit before tax came to £754m, a 27 per cent rise on the £594m it generated last year.
Barclays UK had credit impairment charges of £113m, up from £48m in Q1 2022, which it said “reflected limited observed deterioration”.
Its assets increased quarterly from £1.51trn to £1.53trn which was driven by increased trading and activity in global markets, as well as Barclays’ acquisition of Kensington Mortgages.
The acquisition completed on 1 March and included a portfolio of mortgages totalling £2.2bn risk weighted assets of £800m.
It said the acquisition broadened Barclays’ product range and enhanced its capabilities to deliver digitised consumer financial services.
The wider group delivered a profit before tax of £2.5bn, up from £2.3bn last year and its income rose by 11 per cent to £7.2bn.
C.S. Venkatakrishnan, group chief executive of Barclays, said it was a “strong first quarter” for the group and said all its businesses performed well.
He added: “The momentum across the group allows us to maintain a robust capital position, deliver attractive returns to shareholders, and support our customers and clients through an uncertain economic environment.”
