Barclays Q1 2023 earnings

The headquarters of Barclays Plc beyond the West India Quay Docklands Light Railway station in the Canary Wharf financial district in London, UK, on Monday, March 20, 2023.
LONDON — Barclays on Thursday reported net profit of £1.78 billion ($2.2 billion) for the first quarter, beating expectations and coming in 27% higher year-on-year.
A consensus Reuters poll of analysts forecast net profit at £1.432 billion.
On a branch basis, income from the bank’s consumer, cards and payments division rose 47%, compensating for just 1% growth in its corporate and investment bank division. It partly attributed this to its acquisition of retailer Gap’s credit card portfolio.
The income of Barclays UK was up 19% due to improved net interest income.
The bank also flagged £500 million in credit impairment charges, which it said resulted from higher U.S. card balances and the “continuing normalisation anticipated in US cards delinquencies.”
Impairment charges are used by businesses to write off assets. In its previous results, Barclays said it set aside £1.2 billion for such charges last year, as its customers struggled with cost pressures.
Barclays shares were up 4.3% at 8:55 a.m. in London.
Analysts at Jefferies said the “robust” results suggested scope for consensus upgrades, with “not a lot to nitpick.”