Barclays 3Q Improves on Lower Credit Impairments; Cards and the UK Business Headwinds Remain
Barclays PLC (Barclays or the Group) reported net attributable profit of GBP 611 million compared to GBP 90 million in Q2 (and compared to a net loss of GBP 292 million a year ago, which was largely driven by significant PPI provisions). Q3 2020 results benefitted from strong growth in sales and trading revenues in the Corporate and Investment Bank (CIB) and significantly lower credit impairment charges Quarter-on-Quarter (QoQ). Revenue headwinds in Consumer, Cards and Payments (CC&P) and Barclays UK continued and revenues were down Year-on-Year (YoY), reflecting the effects of the COVID-19 pandemic, although we note that revenues have improved from Q2 levels. In CC&P the revenue improvement partly reflects recovery in US card spending and deposit repricing.
Barclays is a holding company. Through its subsidiaries, Co. is a financial services provider engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management and investment management services. Co.'s business segments are: Barclays U.K, which provides everyday products and services to retail customers and small to medium sized enterprises; Barclays International, which delivers products and services designed for Co.'s corporate, wholesale and international banking clients; and Head Office, which comprises head office and central support functions (including treasury) and businesses in transition.
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