Barclays said today its first-quarter profit rose a better-than-expected 19%, as frenzied trading activity in the first three months of the year boosted investment banking revenue.
The British bank reported profit before tax for January-March of £2.7 billion, up from £2.3 billion a year ago and above analysts' forecasts for £2.5 billion, according to LSEG data.
Income at the lender's investment bank rose 16% from a year ago to £3.9 billion in the first quarter, above analysts' forecasts for £3.5 billion.
Barclays reiterated its performance goals for the year, and even lifted its guidance for 2025 income to above £12.5 billion from a previous forecast of £12.2 billion, spurred by expected growth at its domestic lending division where it has been competing strongly for mortgage and consumer lending business.
The lender in February had already raised its 2025 performance targets after reporting better than expected annual profit for 2024, but will now have to deliver on those targets in a more volatile environment clouded by a trade war between the US and other economies, including China.
Barclays did however update its economic forecasts to reflect the uncertain outlook for global economic growth since US President Donald Trump unleashed plans for sweeping tariffs on April 2.
That triggered the bank to set aside an additional £91m charge against potential future losses, mainly in its US consumer bank and investment bank.
The strong performance from Barclays' investment bank overall matched US rivals that earlier this month reported bumper profits, as traders capitalised on buoyant markets in the early days of Trump's presidency.
Barclays said income from its traditionally strong fixed income trading rose 21%, better than an average of 6% among the top five Wall Street banks, according to a Reuters calculation from company statements.
The British bank however undershot the bumper quarter for stocks trading among those same US peers, where equities revenues rose an average 32% in the first three months of the year compared to the same period a year ago.
Barclays said investment banking fees from advising on mergers and corporate fundraising rose 4% in the first quarter, in line with the increase among the top five US players, Bank of America, Citi, Goldman Sachs, JPMorgan and Morgan Stanley.
Despite the strong first quarter, Wall Street bank bosses warned that the outlook for the rest of the year is murkier, as trade tensions sparked by US tariffs threatened rising inflation and possibly a recession.
Barclays last year laid out a three-year plan to cut costs, return more cash to shareholders and invest in its higher-returning domestic business.
