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Barclays wealth arm grows profit 30% on client 'step change'
by Sarah Miloudi on Oct 31, 2012 at 07:45
Barclays' wealth division has increased its profit before tax by 30% quarter on quarter, as the bank sought to trigger a 'step change' in clients' experience.
According to an interim management statement, Barclays grew its profit before tax to £200 million year on year, a rise of 31%, and grew the same figure by 30% over the last three months, taking its profit before tax for the end of quarter three to £79 million.
At a group level, the bank, which over the summer months has fought hard to fend off the impact of the Libor manipulation scandal and the subsequent departure of three of its top executives, saw its adjusted profit before tax rise 18% to £5.9 billion, looking at the nine months ended in September.
On a more downbeat note, however, it announced two fresh regulatory investigations to its shareholders.
Leaving these probes to one side, Barclays said that within its wealth and investment division high net worth clients had helped drive a 3% year on year rise in income, taking this figure to £1.3 billion.
The bank's wealth arm was also boosted because of a move over the last 12 months to continue to execute its strategic investment programme, with a 'focus on building productive capacity and delivering a step change in the client experience' the bank said.
While more recent weeks have seen it talk of plans for an alternative administration fee model post the retail distribution review - a proposal which has sparked criticism among its peers - Barclays said it is more broadly keeping an eye on the economic environment, which it is 'cautious' on, while new chief Antony Jenkins touched on the bank's mission to repair its reputation.
'While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned,' Jenkins (pictured) said.
'These results demonstrate that we continue to have good momentum in our businesses despite the difficulties we faced through this period,' he added.
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