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As Profits Exceed Forecasts Barclays Raises Its Dividend

By releasing money kept aside during the early days of the pandemic, Barclays achieved profits far beyond expectations in the first half of the year.
The bank reported pre-tax profits of PS5 billion, compared to analysts’ expectations of PS4.1 billion.
The roughly fourfold increase over the same time last year occurred as Barclays released impairment funds, which it had set aside during the previous year’s uncertainty to cover the expenses of potentially bad loans.
In the first half of last year, executives took impairment charges totaling PS3.7 billion.
But, they announced on Wednesday that the stronger economic prognosis predicted by Barclays experts will allow them to free up PS742 million from the impairment fund.
As a result, Barclays was able to announce a 2p-per-share dividend, which was more than the predicted 1.8p.
The bank will also repay money to investors by repurchasing up to PS500 million of its own stock.
“This has been a successful first half, clearly illustrating the benefits of our resilient and diverse universal bank in supporting the expansion of capital markets, our corporate clients, and our retail customers,” said CEO Jes Staley.
“We’ve seen positive signs of revival in consumer banking, and our investment banking fees and stocks businesses have provided record income.”
“We have also proved our ability, and willingness, to serve customers and clients through the pandemic, and we are cognizant that this support will need to continue as we see the pandemic diminish,” he said, adding that “our profitability, robust capital position, and balance sheet have enabled us to raise capital payouts to shareholders.”

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