Banker Barclays said profit before tax was up 47% to £1.82bn in the quarter to end-March as impairments fell 35% compared to the prior year period. Excluding acquisitions and disposals, underlying profit before tax up 90% from £957m to £1.822bn.
Income was up 4% to £8.065bn despite the continued impact of liability margin compression. Impairments were down 35% to £1.508bn relative to Q1 2009 (£2.309bn) and down 19% relative to Q4 2009 (£1.857bn) with a loan loss rate of 112 basis points compared to 131 basis points for the first three months of 2009 and 152 basis points for the last three months of 2009.
Total credit market writedowns were £141m (2009: £2.613bn). Earnings per share were up 35% to 9.3p (2009: 6.9p). First quarter dividend was 1p per share. Barclays said there was continued strengthening of the Group liquidity pool to £152bn.
Gross new lending balances to UK households and businesses up £16bn during Q1 2010, including £7bn relating to the acquired Standard Life Bank.
Customer deposits in Global Retail Banking, Barclays Corporate, Barclays Wealth and Absa increased 5% to £259bn from the year end.
John Varley, Group CEO, said: "I am pleased with the strong growth in profits which we have delivered this quarter. Diversification of our business and risk, and good underlying performance, have combined to produce this result. The improvement that we have seen in impairment reflects the signs of economic recovery now evident in many of the markets in which we operate."
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