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Barclays investment banking pushes profits to £3billion

03 August 2009 / by Rebecca Sargent

Barclays' investment banking arm, Barclays Capital, saw profits more than double to £1billion in the first six months of 2009, pushing Barclays' profits to almost £3billion.

In fact, Barclays did so well in the first six months of the year that profits were up eight per cent compared to the first six months of 2008.

However, a break down of the results reveals that Barclays' investment arm has clearly acted as a life-line during the recession, while profits at the Barclays UK retail banking arm more than halved to £268million, compared with £690million a year ago.

Shares in Barclays are now on the rise as investors snap up shares in the booming bank, which has so far managed to avoid accepting Government hand-outs to see it through the recession.

Commenting on the results, Barclays chief executive John Varley said: "In challenging market conditions, we have continued to benefit from our diversified business base. The investments we have made, particularly in our international businesses, are driving very strong income performance and allowing us to absorb the consequences of the economic downturn.

"Our capital base is stronger and we have significantly reduced leverage. Our goal for 2009 is very clear: we seek to deliver another year of solid profitability. Our first half performance is a good start to this."

Speaking of the banks success, the BBC's Robert Peston said: "Investment banking is booming again, partly thanks to the frenzied attempts by big companies and governments to raise vast amounts of new money."

According to Peston, Barclays has been able to extend its market share because of the damage to other leading UK banks through reckless lending and investing.

Both Lloyds and RBS are due to announce their results later this week.

 © Fair Investment Company Ltd

 

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